CHICAGO, July 10 /PRNewswire-FirstCall/ -- The Boeing Company (NYSE: BA)
announced today that its second-quarter financial results will include a
charge of approximately $0.22 per share on previously acknowledged delays on
its Airborne Early Warning & Control (AEW&C) program.
Boeing continues to expect earnings per share of $5.70 to $5.85 in 2008,
as company-wide performance and productivity are expected to offset the AEW&C
charge by year-end. The company also continues to expect strong double-digit
earnings growth in 2009 with earnings per share guidance unchanged at $6.80 to
$7.00.
The pre-tax charge on the AEW&C program is estimated to be approximately
$250 million and is primarily due to subsystem development issues on the
electronic warfare and ground support systems as well as additional time
required for integration testing. Significant progress has been made on radar
development and overall mission system integration. Boeing expects to deliver
the first two of Australia's six aircraft with interim capability in July
2009, four months later than previously scheduled. These two aircraft and the
remaining four aircraft are expected to be delivered in 2010 with full
capability. Boeing does not believe this delay will affect deliveries to any
of its other AEW&C customers.
Boeing will provide second-quarter results and a more detailed update of
financial guidance with its earnings release announcement on July 23.
Forward-Looking Information Is Subject to Risk and Uncertainty
Certain statements in this report may constitute "forward-looking"
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. Words such as "expects," "intends," "plans," "projects," "believes,"
"estimates," and similar expressions are used to identify these
forward-looking statements. These statements are not guarantees of future
performance and involve risks, uncertainties and assumptions that are
difficult to predict. Forward-looking statements in this press release
include, among others, statements regarding future results as a result of our
growth and productivity initiatives, our 2008 and 2009 financial outlook and
the benefits of the IDS structure. Forward-looking statements are based upon
assumptions as to future events that may not prove to be accurate. Actual
outcomes and results may differ materially from what is expressed or
forecasted in these forward-looking statements. As a result, these statements
speak only as of the date they were made and we undertake no obligation to
publicly update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise. Our actual results and future
trends may differ materially depending on a variety of factors, including the
continued operation, viability and growth of major airline customers and
non-airline customers (such as the U.S. Government); adverse developments in
the value of collateral securing customer and other financings; the occurrence
of any significant collective bargaining labor dispute; our successful
execution of internal performance plans including our company-wide growth and
productivity initiatives, production rate increases and decreases (including
any reduction in or termination of an aircraft product), availability of raw
materials, acquisition and divestiture plans, and other cost-reduction and
productivity efforts; charges from any future SFAS No. 142 review; ability to
meet development, production and certification schedules for the 787 program
and the ability to meet scheduled deliveries of the 787 airplane; technical or
quality issues in development programs (affecting schedule and cost estimates)
or in the satellite industry; an adverse development in rating agency credit
ratings or assessments; the actual outcomes of certain pending sales campaigns
and U.S. and foreign government procurement activities, including the
uncertainty associated with the procurement of tankers by the U.S. Department
of Defense (DoD) and funding of the C-17 program; the cyclical nature of some
of our businesses; unanticipated financial market changes which may impact
pension plan assumptions; domestic and international competition in the
defense, space and commercial areas; continued integration of acquired
businesses; performance issues with key suppliers, subcontractors and
customers; significant disruption to air travel worldwide (including future
terrorist attacks); global trade policies; worldwide political stability;
domestic and international economic conditions; price escalation; the outcome
of political and legal processes, changing priorities or reductions in the
U.S. Government or foreign government defense and space budgets; termination
of government or commercial contracts due to unilateral government or customer
action or failure to perform; legal, financial and governmental risks related
to international transactions; legal and investigatory proceedings; tax
settlements with the IRS and various states; U.S. Air Force review of
previously awarded contracts; costs associated with the exit of the Connexion
by Boeing business; and other economic, political and technological risks and
uncertainties. Additional information regarding these factors is contained in
our SEC filings, including, without limitation, our Annual Report on Form 10-K
for the year ended December 31, 2007 and our Quarterly Report on Form 10-Q for
the quarter ended March 31, 2008.
SOURCE The Boeing Company
