Boeing 2010 Annual Report Download - page 36

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Revenues
Year-over-year changes in Revenue are shown in the following table:
(Dollars in millions)
2010
vs. 2009
2009
vs. 2008
New airplane sales $(2,733) $6,129
Commercial aviation services business 569 (308)
Other (53) (33)
Total $(2,217) $5,788
Revenues for 2010 decreased by $2,217 million or 6.5% compared with 2009. The decrease in new
airplane revenues primarily reflects lower 777 deliveries resulting from a production rate change from 7
to 5 per month beginning in June 2010 and no deliveries on the 747 program due to the transition from
the 747-400 to the 747-8 derivative. The increase in revenues from commercial aviation services
business was primarily due to increased sales of spares.
The increase in revenue of $5,788 million in 2009 from 2008 was primarily attributable to higher new
airplane deliveries partially offset by lower intercompany revenues. 2008 revenues were negatively
impacted by a 2008 IAM strike. The decrease in revenues from commercial aviation services business
was driven by economic conditions.
Commercial jet aircraft deliveries as of December 31 were as follows:
737 747 767 777 Total
2010
Cumulative Deliveries 3,504 1,418 994 910
Deliveries 376(1) 12 74 462
2009
Cumulative Deliveries 3,128 1,418 982 836
Deliveries 372(1) 8 13 88 481
2008
Cumulative Deliveries 2,756 1,410 969 748
Deliveries 290(1) 14 10(1) 61 375
(1) Includes intercompany deliveries of 5 737 aircraft in 2010, 5 737 aircraft in 2009 and 2 767 aircraft
and 2 737 aircraft in 2008.
Earnings From Operations
Earnings from operations for 2010 increased by $3,589 million compared with 2009. The increase was
primarily due to the 2009 reclassification from inventory to research and development expense of costs
related to the first three 787 flight test aircraft, and the 2009 reach-forward losses on the 747 program.
Costs of $2,693 million included in research and development expense in 2009 for the first three flight
test 787 airplanes were a result of our determination that these aircraft could not be sold. The reach-
forward loss on the 747 program of $1,352 million during 2009 was primarily due to increased
production costs, reductions in projected delivery price increases associated with escalation and the
difficult market conditions affecting the 747-8. The remaining net decrease in earnings for 2010 was
primarily attributable to increased research and development expense of $285 million and lower new
airplane deliveries.
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