Boeing 2014 Annual Report Download - page 8

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6
goal of full participation, by the end of
2016 approximately 90 percent of our
workforce will be enrolled in modern
defined-contribution plans, which provide
attractive retirement benefits without
increasing balance sheet risks.
We also continued to strategically broaden
our manufacturing and engineering foot-
print by expanding our airline customer
support center in Southern California, in-
sourcing from suppliers to Boeing South
Carolina propulsion system design and
production work for the 737 MAX, and
placing more defense support work in
Oklahoma City and St. Louis. These
actions and others will improve business
continuity and productivity, and expand
our access to new talent and technology.
The Way Ahead
Our results in 2014 represent the culmi-
nation of a decade of effort by Boeing
employees to reaffirm our foundational
strengths, sharpen our competitive edge
and deliver on the promise of a truly inte-
grated, broad-based aerospace company.
Thanks to them, we are stronger, healthier
and more competitive than at any time in
recent memory.
To sustain and grow our industry leader-
ship, and continue delivering for our
customers and other stakeholders in 2015
and beyond, means there’s no letting up
on either the strategies that have enabled
delivery in 2017, and firm configuration of
the 777X, slated for first delivery in 2020.
We also are modernizing our produc-
tion system as we increase rates and
introduce new models. Advanced man-
ufacturing innovations, including greater
automation, will enable us to reach new
standards for employee safety, first-time
quality and factory throughput.
Our 2015 Commercial Airplanes priorities
are to profitably deliver our record backlog
at current production rates and prepare
for future rate increases, execute our
development programs on plan, drive
productivity to increase program margins
and self-fund our development programs,
and continue to leverage and grow our
services business.
In Defense, Space & Security, notwith-
standing the threat of full U.S. budget
sequestration looming in 2016, we see
opportunities for growth in extending
our current programs, capturing future
U.S. franchise programs and increasing
international market share.
Our domestic market remains our largest
opportunity, and we are focused on meet-
ing our commitments and addressing our
customers’ evolving requirements. Since
2010, we have driven significant new
efficiencies—more than $5 billion worth
through our market-based affordability
efforts—to meet government customer
our success or the goals we have set for
our innovation and business performance.
We must continue to meet our commit-
ments to customers on our production
programs; deliver development programs
on time and on cost with the performance
we promised; and drive higher safety,
quality and productivity across the enter-
prise and throughout our supply chain.
Boeing Commercial Airplanes has built
a substantial technological lead in com-
mercial aviation. By listening closely to our
customers, and tailoring proven innovation
to meet their needs, we have de-risked
a decade of new product development,
while at the same time expanding the per-
formance and efficiency advantage of our
airplanes in every segment. For example,
in the high-value twin-aisle market, where
we offer customers significantly more
airplane size and range options, we out-
paced our competitor in 2014 deliveries
by a ratio of more than 1.7-to-1.
Our imperative now is to execute—to
deliver on our lower-risk development
agenda and to accelerate the conversion
of our record backlog into cash and earn-
ings to fund those projects and provide
increasing returns to all stakeholders.
Our development programs are pro-
gressing to plan as we prepare for key
milestones in 2015, including the start of
final assembly of the 737 MAX, with first
Comparison of Cumulative‡
Five-Year Total Shareholder Returns
Boeing
S&P 500 Index
S&P 500
Aerospace
& Defense
Company/Index
Years Ending December
Base Period
2009
100
100
100
123.59
115.11
115.06
2010
142.38
121.19
117.49
2011
149.84
138.83
136.29
2012
276.81
215.08
180.42
2013 2014
269.80
239.66
205.10
$100
$300
$200
‡ Cumulative return assumes $100 invested; includes reinvestment of dividends.
The Boeing Company
S&P 500 Aerospace & Defense
S&P 500 Index
2014 Environmental Performance
(Percent Performance to 2012 Baseline)
We remain on pace
to achieve our target
of zero growth in
environmental impact,
even with record
business growth and
expanding operations.
-8
-6
-4
-2
0
2
4
Hazardous Waste -7.7%
GHG Emissions -3 .1%
Solid Waste 0.0%
Water Intake -6.9%
2017 Target: 0% absolute
growth—water, GHG and
solid waste; 0% revenue-
adjusted growth—haz. waste