The company's cash flow guidance is increased to $12.5 billion from $12.25 billion, driven by improved performance. Full year EPS guidance is increased to between $11.20 and $11.40 from $11.10 and $11.30 and core earnings per share (non-GAAP)* guidance is increased to between $9.90 and $10.10 from $9.80 and $10.00 driven by a lower-than-expected tax rate. Full year segment guidance is updated, reflecting the realignment of the company's services businesses into Boeing Global Services (BGS).
"Our teams across all three business segments are driving execution with a focus on both productivity and growth, which has enabled Boeing to deliver solid third quarter financial results, grow cash flow, and raise our 2017 outlook," said Chairman, President and Chief Executive Officer Dennis Muilenburg.
"In the third quarter we successfully launched our newest business segment, Boeing Global Services, leveraging our unique One Boeing advantages to offer complete lifecycle support across the commercial, defense and space sectors. We achieved a number of key milestones in the quarter with the delivery of a record 202 commercial airplanes, including 24 737 MAXs as we continue the smooth introduction of that airplane. On the defense side, we booked $6 billion in new orders, including an initial contract award for the Ground Based Strategic Deterrent program and an award from the U.S. Navy for 14 F/A-18 Super Hornet aircraft."
"We remain focused on accelerating productivity, quality and safety improvements across the company, executing on our future development programs, and capturing new business to ensure our continued growth."
|
Table 2. Cash Flow |
Third Quarter |
Nine Months |
|||||||||||
|
(Millions) |
2017 |
2016 |
2017 |
2016 |
|||||||||
|
Operating Cash Flow |
$3,396 |
$3,202 |
$10,440 |
$7,667 |
|||||||||
|
Less Additions to Property, Plant & Equipment |
($399) |
($595) |
($1,304) |
($2,014) |
|||||||||
|
Free Cash Flow* |
$2,997 |
$2,607 |
$9,136 |
$5,653 |
|||||||||
|
* Non-GAAP measures. Complete definitions of Boeing's non-GAAP measures are on page 6, "Non-GAAP Measures Disclosures." |
Operating cash flow in the quarter of $3.4 billion was driven by solid operating performance and favorable timing of receipts and expenditures (Table 2). During the quarter, the company repurchased 11 million shares for $2.5 billion, leaving $6.5 billion remaining under the current repurchase authorization. The company also paid $0.9 billion in dividends in the quarter, reflecting a 30 percent increase in dividends per share compared to the same period of the prior year.
|
Table 3. Cash, Marketable Securities and Debt Balances |
Quarter-End |
||||||
|
(Billions) |
Q3 17 |
Q2 17 |
|||||
|
Cash |
$8.6 |
$8.7 |
|||||
|
Marketable Securities 1 |
$1.4 |
$1.6 |
|||||
|
Total |
$10.0 |
$10.3 |
|||||
|
Debt Balances: |
|||||||
|
The Boeing Company, net of intercompany loans to BCC |
$7.8 |
$7.8 |
|||||
|
Boeing Capital, including intercompany loans |
$3.0 |
$3.0 |
|||||
|
Total Consolidated Debt |
$10.8 |
$10.8 |
|||||
|
1 Marketable securities consists primarily of time deposits due within one year classified as "short-term investments." |
