Boeing 3rd Quarter 2008 Earnings

Boeing Posts Lower Third-Quarter Results on Reduced Commercial Deliveries

􀂄 Third-quarter revenues declined to $15.3 billion from $16.5 billion as labor strike
and supplier production problems pushed airplane deliveries out of the quarter
􀂄 EPS declined to $0.96 per share, reduced by an estimated $0.60 on the lower
deliveries and by $0.08 due to tax adjustments
􀂄 Backlog grew to a record $349 billion as near-term demand remains strong
􀂄 Updated financial guidance to be provided after strike concludes

The Boeing Company’s [NYSE: BA] third-quarter net
income declined 38 percent, to $695 million, while earnings per share declined 33
percent to $0.96 per share, both reflecting an ongoing machinists' strike and supplier
production challenges on customer-furnished galleys for certain wide-body airplanes.
Those items reduced third-quarter commercial airplane deliveries by approximately 35
units and net earnings by an estimated $0.60 per share. Revenues for the quarter
declined 7 percent, to $15.3 billion.

The 787 Dreamliner made progress during the quarter despite the labor strike.
Key milestones included a successful hydraulic system test, landing gear test, and
pressurization test of the static airframe – the last, a key step in validating the structural
integrity of the airplane. The program also began testing the flight controls and began
final assembly of the fourth flight-test airplane. To date, the program has won 895 net
airplane orders from 58 customers.