The Boeing Company reported yesterday that second-quarter net income rose to $1.0 billion, on revenue of $20 billion. “Commercial airplane deliveries increased 27 percent in the second quarter, and our defense, space and security business also produced higher revenues and strong margins in a difficult market environment.” said Chairman, President and Chief Executive Officer Jim McNerney. “As a result of this solid first-half performance, we have strengthened our outlook for the year, and our people remain focused on disciplined execution, quality and productivity, and meeting customer commitments.”
The Boeing Company Defense & Space operations increased by 7 percent to $8.2 billion in the second quarter, amid tougher operating conditions, reflected by a drop in operating margin by 1.5 points to 9.1 percent. Earning from operations was down in all segments except global service and support. The backlog remained at $72 billion – more than two times the unit’s projected annual revenue.
Boeing Military Aircraft (BMA) revenues increased to $4.1 billion in the second-quarter, primarily due to higher delivery volume in the CH-47 Chinook business. However, operating margin decreased 1.8 points to 8.8 percent, as inventory adjustment on the A160 unmanned system program erodded other healthier program performance.
Global Services & Support (GS&S) reported an increase in revenue in second-quarter, a total of $2.2 billion. Operating margin was 11.9 percent, reflecting improved performance in maintenance, modification and upgrades. During the quarter, GS&S was awarded the F-15 Singapore follow-on performance-based logistics contract.
Network & Space Systems (N&SS) revenue decreased to $1.9 billion, impacted by Brigade Combat Team Modernization reduction. N&SS was awarded its first international cybersecurity contract during this quarter.