Boeing 2006 Annual Report Download - page 11

9
Strong market response to our
committed customer focus,
streamlined production methods
and simplified product line assures
us that we are on the right course.
Our disciplined, measured ramp-up of
airplane production has been integral to
meeting our financial performance goals.
We delivered 398 airplanes for the year, a
37 percent increase over 2005. Revenues
rose 33 percent to $28.5 billion, with
operating earnings of $2.7 billion. Im-
provements to our production systems in
both the Everett and Renton facilities —
including a moving line for the 777 and
continuing Lean improvements to 737
production — have increased efficiency
and reduced costs.
With 1,044 net orders in 2006, Boeing
logged record commercial airplane
orders for the second consecutive year.
Interest in the 787 Dreamliner remained
strong, bringing total orders to 448,
the most successful launch of a new
commercial airplane in Boeing history.
With 729 orders, the 737 family set a
record for sales in a single year.
Response to the new 747-8 was also
excellent, including our first airline order
for the passenger version, the 747-8
Intercontinental. In addition, Boeing
Business Jets announced the sale of the
first 787 and 747-8 VIP models.
On the 787 Dreamliner program, we are
leading our global team through devel-
opment of this revolutionary jetliner. Our
factory partners began parts production
for the 787; the first developmental
wing box was built and successfully
completed structural testing; the first
production wire bundle shipped; our
major systems laboratories became
operational; and we began major assem-
bly on schedule. Also, the 747-400
DreamlifterTM, which will transport major
assemblies for the 787, made its first
flight and began flight testing.
We continue to invest in airplanes
that meet our customers’ needs
now and in the future while contin-
uously improving our production
systems to enhance quality and
efficiency.
Our development programs follow our
view of where the market is going —
point-to-point, high-frequency air travel,
with airplanes that are profitable for our
airline customers and provide the best
experience for the airline passenger. We
are working to enhance responsiveness
to our customers by reducing the time it
takes to resolve operational concerns
and broadening our support capabilities.
At the same time, we continue to drive
efficiencies through our production sys-
tems, and we are on track to increase
production again to more than 440 air-
planes in the next year. The 787 program
is moving forward on schedule, with first
flight planned for 2007. Our goal, as
always, is to provide innovative solutions
that are tailored to our customers’ needs
while running a healthy and profitable
business — and ensuring that we are
here for our customers, both now and
for the long term.
We began implementing the Boeing Production System on the 777 line in 2006.
Enhanced with a moving line, the BPS creates a leaner, more efficient manufacturing
process to build the market-leading 777 jetliner. The 787 Dreamliner will advance pro-
duction even further, with the ambitious goal of reducing final assembly to three days.