FT reports gloom for Boeing's '11 earnings – Boeing's financial results say different

FT reports gloom for Boeing’s 2011 earnings – Boeing’s financial results say different
Today’s FT “Dreamliner delays to hit Boeing profits
The aircraft maker expects earnings to fall by up to 15 per cent this year compared to 2010 as the cost of delays to the troubled programme starts to become clear”
http://link.ft.com/r/H60H77/YHSS12/SLUZC/9ZHM05/RN5UCN/82/h?a1=2011&a2=1&a3=27

What a contrast in what you read above and the actual declaration by Boeing (legally binding on Boeing) – FT blames the Dreamliner but if you care to read the excerpts below and ideally the full release from Boeing there are other business segments down due to the economic recession – see short excepts below

Boeing reports fourth quarter 2010 results and 2011 Guidance
CHICAGO, Jan. 26, 2011 /PRNewswire-FirstCall/ —
http://boeing.mediaroom.com/index.php?s=43&item=1596

“Fourth-Quarter 2010 Earnings per share of $1.56, including favorable tax settlement, on revenue of $16.6 billion
Operating cash flow of $1.1 billion reflects strong operating performance”

“Full Year 2010 Earnings per share of $4.45 on revenue of $64.3 billion
Operating cash flow of $3.0 billion and cash and marketable securities of $10.5 billion provide strong liquidity
Backlog grew to $321 billion including $69 billion of new orders during the year”

“Outlook 2011 EPS guidance of between $3.80 and $4.00 reflects solid core performance, higher pension expense and the recently revised 787 schedule”

“The 787 program experienced an in-flight electrical incident on a test flight in November. As disclosed last week, first delivery is now expected in the third quarter of 2011 and includes the time required to produce, install and test updated software and new electrical power distribution panels in the flight test and production airplanes. Total firm orders for the 787 at year-end were 847 airplanes from 57 customers. “

“Boeing Defense, Space & Security’s fourth-quarter revenue declined 4 percent to $8.2 billion on lower revenue in Boeing Military Aircraft (BMA) and Global Services & Support (GS&S). Operating margin was 10.0 percent reflecting improved margins in Network & Space Systems (N&SS) (Table 5).
For the full year, revenue decreased by 5 percent to $31.9 billion on expected lower volume in N&SS. Operating earnings decreased by $0.4 billion to $2.9 billion, producing operating margins of 9.0 percent on lower margins in BMA.”

“The company’s 2011 financial guidance (Table 7) see URL reflects solid core operating performance, higher pension expense, the recently revised 787 schedule and the current defense contracting environment.”

“Boeing’s 2011 revenue guidance is between $68 and $71 billion and reflects the initial 787 and 747-8 deliveries. Earnings guidance for 2011 is established at between $3.80 and $4.00 per share. Total pension expense in 2011 is expected to be $1.8 billion or $1.58 per share, an increase of $0.58 per share from 2010. Operating cash flow is expected to be greater than $2.5 billion in 2011, including $0.5 billion of discretionary pension contributions.”

“Commercial Airplanes’ 2011 deliveries guidance is expected to be between 485 and 500 airplanes and is sold out. It includes the first 787 and 747-8 deliveries (combined 25 to 40 units), which are expected to begin in the third quarter of 2011 and mid-2011, respectively. Commercial Airplanes’ 2011 revenue is expected to be between $36 and $38 billion with operating margins between 7.5 and 8.5 percent.”

“Defense, Space & Security’s revenue for 2011 is expected to be between $31.5 and $33 billion with operating margins between 8.5 and 9 percent.
Boeing Capital Corporation expects that its aircraft finance portfolio will continue to reduce in 2011, as new aircraft financing of less than $0.5 billion is expected to be lower than normal portfolio runoff through customer payments and depreciation.”

“Boeing’s 2011 R&D forecast is between $3.7 and $3.9 billion. Capital expenditures for 2011 are expected to be approximately $2.3 billion. “

I don’t know any business that due to the economic recession would not show a lower projected income in 2011 – nothing unique to Boeing or caused purely by the Dreamliner delays.