Boeing 2014 Annual Report Download - page 5

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company record and increased our record
backlog to nearly 5,800 airplanes worth
$440 billion. Operating margins were a
healthy 10.7 percent, including strong per-
formance in our services business.
The 787 program set a twin-aisle industry
record with 114 deliveries at our planned
production rate of 10 per month—the
highest ever for a twin-aisle jet—across
our two final assembly sites in Everett,
Washington, and North Charleston, South
Carolina. We also completed flight testing
and certification of the 787-9 and deliv-
ered the first 10 of these higher-capacity,
longer-range 787 models.
With cumulative deliveries approaching
250 airplanes and 30 customers, the
787 fleet is averaging more than 500
flights per day and has safely flown more
than 39 million passengers since entering
service. Airlines flying the 787 have saved
1.7 billion pounds of fuel and are opening
new routes between city pairs never
before connected by direct flights, thanks
to its mix of fuel efficiency, range and
passenger comfort.
Additional twin-aisle milestones included:
Achieving firm configuration of the
787-10.
Finalizing 220 orders for the new 777X.
Delivering a record 99 777s and book-
ing 63 new orders to support the
transition to the 777X later this decade.
2014 Review
In 2014, Boeing delivered another strong
year of growth and improved operational
performance. We set new records,
reached key milestones and significantly
advanced initiatives that will fuel our
success for years to come.
Higher commercial airplane deliveries
drove revenue up 5 percent to a record
$90.8 billion. High demand for our market-
leading products and services produced
$152 billion in new orders, boosting total
company backlog to a record $502 billion.
Strong core operating performance
companywide raised core earnings per
share 22 percent to a record $8.60*. Core
operating earnings grew for the fifth con-
secutive year to $8.9 billion*. Operating
cash flow also increased 8 percent to
$8.9 billion.
On these strong performance trends and
our positive outlook, we announced in
December a 25 percent increase in the
quarterly dividend and a new share-
repurchase authorization totaling
$12 billion—part of our commitment to
return increased value to shareholders
as we invest and grow.
Boeing Commercial Airplanes had rev-
enues of $60 billion on an industry record
723 deliveries, which expanded our global
market share lead for the third consecutive
year. Net new orders of 1,432 airplanes—
nearly twice our 2014 output—set a
In the single-aisle market, we won more
than 1,000 combined orders for the
Next-Generation 737 and 737 MAX for the
third consecutive year. We also reached
our highest-ever 737 production rate of 42
per month, and launched the 737 MAX
200 with a 100-plane order from Ryanair.
The higher-capacity MAX 200 will increase
airline revenue potential and have 20 per-
cent better fuel efficiency per seat than
today’s most efficient single-aisle airplanes.
Demand for the 737 MAX family remains
high with cumulative orders for more than
2,700 airplanes from 57 customers.
To profitably build out our backlog and
create capacity for new orders, our plans
call for five additional production rate
increases. The 787 will rise to 12 per
month in 2016 and to 14 per month by
the end of the decade; 737 production
will increase to 47 per month in 2017 and
52 per month in 2018; and the 767 will
move from 1.5 per month to two per
month in 2016.
Overall, we project demand for 36,770
new airplanes over the next 20 years at a
total value of $5.2 trillion—a highly attrac-
tive market in which our superior products
and technologies have us poised for
sustained growth in the years ahead.
Boeing Defense, Space & Security
achieved solid revenues of $30.9 billion
and grew operating margins again to
10.1 percent. We delivered 179 military
aircraft (a 9 percent increase from 2013),
We grew our diversified backlog to a
record $502 billion with record net orders
of $152 billion and a relentless focus on
productivity, as we remain poised to deliver
sustained growth and strong business
performance for years to come.
Total Backlog†
($ in billions)
320.8
355.4
390.2
502.4
440.9
†
Total backlog includes contractual and unobligated
backlog. See pages 23–24 of the Form 10-K.
We delivered a record 723 commercial air-
planes in 2014, while continuing to improve
efficiency, introduce new models and make
disciplined increases in production rates to
meet growing market demand.
Commercial Airplane Deliveries
462 477
601
648
723
*Non-GAAP measures. See page 122.