3q 2006

Earnings day tends to be a big event around Boeing. Yesterday was no exception.
And as we heard from company leaders, our third quarter results reflect Boeing’s continued focus on executing our business plan and keeping our promises to our customers.
During the quarter, we delivered 100 airplanes, as we successfully increased our production rates.BCA’s contractual backlog expanded to a record $154 billion - which is more than five times the current annual BCA revenues.
We booked 243 orders during the third quarter. Our year-to-date net order total is now 773 as of today.
And the 787 Dreamliner continues as the most successful commercial airplane launch in history - with 432 firm orders now, from 34 customers.
We’ve acknowledged many times that new programs are not without their challenges. And as you may have read in the news coverage, we’re raising our research and development forecast in response to some challenges on the 787 program – as well as in response to the increased scope and customer-inspired changes on the 747-8 program.
The increased 787 R&D funding supports smart contingency planning. We continue to work to reduce the airplane’s weight, and we’re helping some of our partners get their production system up and running.
We’re also setting aside money that would allow us to quickly address other issues that may come our way. We know we’ll have some. As I said, new airplane programs always do. But we’re confident we’ll successfully work our way through them.
As our CEO Jim McNerney said yesterday, the 787 will be done on time and will be done in line with contractual commitments.
http://www.boeing.com/randy/images/7...cf_tail_sm.jpgEarlier this month, in Everett, we opened the unique tail door of the 747-400 Large Cargo Freighter for the first time. The LCF will play a “huge” role in the 787 production system.

The 3Q earnings report also points out that we’ve achieved some important development milestones this past quarter - such as the arrival in Seattle of the Large Cargo Freighter - as we head toward 787 flight testing next year and entry into service during 2008.
We also delivered our 2,000th Next-Generation 737 airplane, and saw the successful first flight of the new 737-900ER.
We’re on track to a projected 395 deliveries this year and are virtually sold out to our guidance of between 440 and 445 deliveries for 2007.
BCA President & CEO Scott Carson told employees that it all points to the fact that customers continue to validate our product line of lighter, faster, more fuel-efficient airplanes, and are responding to our market-leading customer support.
I think it’s been a good quarter.


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