Boeing 2005 Annual Report Download - page 3

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Operational Highlights
� Improved revenue growth
by 5 percent and increased
net income by 37 percent over
2004, despite strikes at two of
our business units and moder-
ating defense markets.
� Increased backlog by
34 percent to a record
$205 billion.
� Generated $7 billion of
operating cash flow, allowing us
to fund $1.9 billion into pen-
sion plans, buy back approxi-
mately $3 billion in stock and
invest in new products.
� Continued strong stock
performance — performing in
the top quartile of the S&P
500, with 36 percent growth
over 2004; increased earnings
per share by 42 percent.
� Captured a Boeing record
1,002 net (1,029 gross)
commercial airplane orders,
proving we have the right mar-
ket and product strategies.
� Reached significant
Commercial Airplanes program
milestones with launch of the
777 Freighter, 737-900
Extended Range and 747-8
airplanes and completion of
firm configuration for the 787
Dreamliner.
� Demonstrated outstanding
performance from Integrated
Defense Systems with a 33
percent operating earnings
increase over 2004; and oper-
ating margins at 12.6 percent
compared to 9.6 percent a
year ago.
� Achieved major IDS pro-
gram milestones with suc-
cessful Future Combat System
and Multi-mission Maritime
Aircraft program reviews, deliv-
ery of the first F-15K to the
Republic of Korea, rollout of
the Italian KC-767 Tanker, and
a successful Ground-based
Missile Defense test flight.
� Completed divestiture of
our Wichita operations,
Rocketdyne Propulsion &
Power and Boeing Electronic
Dynamic Devices, Inc., as we
sharpen our focus on large-
scale aerospace and defense
systems integration and give
these businesses the oppor-
tunity to grow through access
to broader markets.
delivering results
2005 Financial Highlights
U.S. dollars in millions except per share data 2005 2004 2003 2002 2001
Revenues 54,845 52,457 50,256 53,831 57,970
Net earnings 2,572 1,872 718 492 2,827
Earnings per share* 3.19 2.24 0.85 2.84 3.40
Operating margins 5.1% 3.8% 0.8% 6.4% 6.2%
Contractual backlog† 160,473 109,600 104,812 104,173 106,591
* Before cumulative effect of accounting change and net gain (loss) from discontinued operations.
†Commercial Airplanes backlog at December 31, 2005, has been reduced by $7.8 billion to reflect the planned change
in accounting for concessions effective January 1, 2006. Had December 31, 2004, reflected this method of accounting,
Commercial Airplanes contractual backlog would have been reduced by $4.9 billion to $65.5 billion. Refer to Note 1 in
the Financial section.
NOTE: Page 3 of this report refers to earnings per share adjusted for special items “core earnings per share”. This is a
“non-GAAP financial measure” under SEC rules. The reasons we use core earnings per share and a reconcilliation to
GAAP earnings per share is included on page 21 of this report.
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