Boeing 2013 Annual Report Download - page 37

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25
has resulted in intense pressures on pricing and other competitive factors, and we expect these pressures
to continue or intensify in the coming years.
Worldwide, airplane sales are generally conducted in U.S. dollars. Fluctuating exchange rates affect the
profit potential of our major competitors, all of whom have significant costs in other currencies. Changes
in value of the U.S. dollar relative to their local currencies impact competitors’ revenues and profits.
Competitors routinely respond to a relatively weaker U.S. dollar by aggressively reducing costs and
increasing productivity, thereby improving their longer-term competitive posture. If the U.S. dollar
strengthens, competitors can use the improved efficiency to fund product development, gain market share
through pricing and/or improve earnings.
We are focused on improving our processes and continuing cost-reduction efforts. We continue to leverage
our extensive customer support services network which includes aviation support, spares, training,
maintenance documents and technical advice for airlines throughout the world. This enables us to provide
a high level of customer satisfaction and productivity. These efforts enhance our ability to pursue pricing
strategies that enable us to price competitively.
Operating Results(Dollars in millions)
Years ended December 31, 2013 2012 2011
Revenues $52,981 $49,127 $36,171
% of total company revenues 61% 60% 53%
Earnings from operations $5,795 $4,711 $3,495
Operating margins 10.9% 9.6% 9.7%
Research and development $1,807 $2,049 $2,715
Contractual backlog $372,980 $317,287 $293,303
Unobligated backlog $660 $1,466 $2,088
Revenues
Revenues in 2013 increased by $3,854 million or 8% compared with 2012 due to higher new airplane
deliveries. Revenues in 2012 increased by $12,956 million or 36% compared with 2011 primarily due to
higher new airplane deliveries across all programs.
Commercial airplanes deliveries as of December 31 were as follows:
737 747 767 777 787 Total
2013
Cumulative deliveries 4,733 1,482 1,061 1,164 114
Deliveries 440 (1) 24 21 98 65 (2) 648
2012
Cumulative deliveries 4,293 1,458 1,040 1,066 49
Deliveries 415 (1) 31 26 83 46 (2) 601
2011
Cumulative deliveries 3,878 1,427 1,014 983 3
Deliveries 372 (1) 9 20 73 3 477
(1) Includes intercompany deliveries of eight aircraft in 2013, nine in 2012 and seven in 2011.
(2) Includes one aircraft in 2013 and three in 2012 accounted for as revenues by BCA and as operating
leases in consolidation.