Boeing 2013 Annual Report Download - page 39

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27
The following table provides details of the accounting quantities and firm orders by program as of
December 31. Cumulative firm orders represent the cumulative number of commercial jet aircraft deliveries
plus undelivered firm orders.
Program
737 747 767 777 787
2013
Program accounting quantities 7,000 1,574 1,113 1,550 1,300
Undelivered units under firm orders 3,680 55 49 380 916
Cumulative firm orders 8,413 1,537 1,110 1,544 1,030
2012
Program accounting quantities 6,600 1,574 1,103 1,450 1,100
Undelivered units under firm orders 3,074 67 68 365 799
Cumulative firm orders 7,367 1,525 1,108 1,431 848
2011
Program accounting quantities 6,200 1,549 1,084 1,350 1,100
Undelivered units under firm orders 2,365 97 72 380 857
Cumulative firm orders 6,243 1,524 1,086 1,363 860
Program Highlights
737 Program The accounting quantity for the 737 program increased by 400 units during 2013 due to the
program’s normal progress of obtaining additional orders and delivering airplanes. The accounting quantity
includes NG and MAX units. We increased our production rate from 35 to 38 per month in the first quarter
of 2013 and a further increase to 42 per month is planned for the second quarter of 2014. On October 31,
2013, we announced plans to increase production of the 737 to 47 airplanes per month beginning in 2017.
First delivery of the 737 MAX is expected in 2017.
747 Program Continued weakness in the air cargo market and lower-than-expected demand for large
commercial passenger aircraft have resulted in pricing pressures and fewer orders than anticipated. We
continued to produce at a rate of 2 per month during 2013. In April 2013, we announced that the production
rate would be decreased from 2 per month to 1.75 per month starting January 2014 and in October 2013
we announced that we would further reduce the production rate to 1.5 per month from February 2014
through the end of 2015. We continue to have a number of unsold 747 production positions and remain
focused on obtaining additional orders, reducing out-of-sequence work, improving supply chain efficiency
and implementing cost-reduction efforts. If market and production risks cannot be mitigated, the program
could face a reach-forward loss that may be material.
767 Program The accounting quantity for the 767 program increased by 10 units during 2013 due to the
program’s normal progress of obtaining additional orders and delivering airplanes. During the third quarter
of 2013 we reconfigured the 767 assembly line to include a 767 derivative to support the Tanker program
and decreased our production rate from 2 to 1 per month. We expect to increase the commercial rate to
1.5 per month in 2014 and back to 2 per month in 2016.
777 Program The accounting quantity for the 777 program increased by 100 units during 2013 due to the
program’s normal progress of obtaining additional orders and delivering airplanes. We increased our
production rate from 7 to 8.3 per month in the first quarter of 2013. In November 2013 we launched the
777X and first delivery is expected in 2020.