Boeing Reports Second-Quarter Results and Raises 2014 EPS Guidance
Chicago, IL, July 23, 2014--The Boeing Company reported second-quarter core earnings per share (non-GAAP) of US$ 2.42, reflecting strong performance and favorable tax items. Second-quarter 2014 results included a US$ 272 million after-tax charge ($0.37 per share) on the KC-46A Tanker program reflecting the cost of additional engineering and systems installation work required to complete the Engineering and Manufacturing Development contract.
Favorable tax items include the previously announced tax benefit of US$ 116 million< for the 2007-2008 tax settlement, as well as an additional tax benefit of US$ 408 million in the second quarter.
Core earnings per share guidance for 2014 increased to between $7.90 and $8.10<, from $7.15 to $7.35, reflecting the US$ 408 million tax benefits, strong operating performance and the KC-46A Tanker charge. GAAP earnings per share guidance for 2014 increased to between $6.85 and $7.05.
"Strong operating performance across our production programs and services businesses drove revenue and earnings-per-share growth and healthy operating cash flow, which supported $1.5 billion in additional share repurchases in the quarter," said Boeing Chairman and Chief Executive Officer Jim McNerney.
"While challenges resolving engineering and systems installation issues on our tanker test aircraft are resulting in higher spending to maintain schedule, the issues are well understood and we remain on path to begin flight testing fully provisioned tankers the first part of next year," McNerney said.
Boeing's Network & Space Systems (N&SS) second-quarter revenue was US$ 1.9 billion, reflecting lower commercial satellites volume, and operating margin increased to 7.8 percent. During the quarter, N&SS completed a successful Missile Defense System intercept in flight test.
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