Boeing 2011 Annual Report Download - page 7

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With strong core operating performance as our bed-
rock, and substantial growth already booked in our
backlog, our goal is to convert these foundational
strengths into sustained business performance—the
year-in, year-out excellence that defines the world’s
top-performing companies. By focusing on disciplined
execution, productivity improvements to continuously
fund innovation, and improved management of our
risks, I am convinced our team can consistently
deliver the high levels of performance and value that
our stakeholders expect.
At Boeing Commercial Airplanes, our top priority
now is to deliver on the growth in our record backlog,
while ensuring continuity for our business as we scale
it up dramatically to meet market demands.
Over the next three years alone, planned production-
rate increases will boost our commercial airplane
output by more than 40 percent. Last December, we
retired significant risk to this growth plan by reach-
ing an early, four-year contract extension with our
machinists’ union in Puget Sound. The agreement
helps secure delivery stability for our customers and
economics that will make us more competitive. Other
recent steps taken to ensure business continuity
include rebalancing the 787 work done in-house and
by our global partners, and expanding and diversify-
ing our manufacturing and engineering base in
South Carolina and other locations.
Our priorities, then, for Commercial Airplanes are:
First, steadily and profitably increase production rates
to deliver our 3,771-airplane backlog; second, execute
787-9 and 737 MAX development efforts on plan;
third, continue to grow our services business; and
fourth, extend our lead in the twin-aisle segment with
potential advances in our 777 and 787 families.
At Boeing Defense, Space & Security, while flat to
declining defense budgets will continue to character-
ize U.S. and European markets, we foresee significant
growth potential in other regions, including the Middle
East and Asia-Pacific, that will provide opportunities
to mitigate the impact of domestic reductions.
Government customers also continue to push for
reduced costs and greater efficiencies in defense
spending, and more of their limited dollars are going
toward new capabilities in unmanned systems; intel-
ligence, surveillance and reconnaissance; logistics;
and cyber and infrastructure security.
Anticipating this environment, we have been making
the necessary changes to compete effectively. In
addition to pursuing and capturing a larger share
of international sales, we have made 11 strategic
acquisitions—and invested internally—to build the
new capabilities sought by our customers. We have
also taken significant steps to reduce infrastructure
and other costs, and further increase productivity to
enable continued investments in innovation.
Fortunately, our markets are large and global, and
we compete across a broad range of product-and-
services segments, from military aircraft, to commercial
and military satellites, to network systems and space
exploration, to integrated logistics, and training
systems and services. With customers demanding
greater value for every dollar spent, our portfolio of
reliable, proven and affordable products and services
is a competitive advantage.
As such, our Defense, Space & Security priorities are:
First, extend and grow our core business by bringing
capability and affordability to our customers; second,
capture additional international business; and third,
continue to strengthen our capabilities in the afore-
mentioned higher-growth spending areas—through
both internal investments and targeted acquisitions.
One-Company Advances
For several years now, we have worked to foster a
more open and inclusive culture that values com-
mon goals, personal accountability, integrity and
trust as a means to achieve better business results.
We also have purposefully redesigned much of the
organization to sharpen the focus in our businesses,
strengthen our functions, and enable growth by
bringing the best of Boeing to every effort.
Final space shuttle
mission completed
737 MAX launched
AugustJuly September
Historic first
787 Dreamliner
delivered to ANA
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