Boeing Conference Call Highlights

Boeing BA reported its third quarter earnings on Wednesday. Shares of the company are down 5 percent.

Below are some key highlights from the conference call:

Performance:

• Boeing delivered another strong quarter, with solid operating performance across our production programs and services businesses, which drove a 19 percent increase in our core earnings per share.

• This performance has allowed us to continue returning cash to our shareholders through our strong dividend and share repurchase program.

• Revenue at Boeing Commercial Airplanes increased 15 percent to $16 billion, and operating margins were strong at 11.2 percent.

• We delivered 186 commercial airplanes in the third quarter, including thirty-one 787 Dreamliners, and we added net new orders of 501 airplanes.

• Boeing Defense, Space & Security revenue was $8 billion in the third quarter, and operating margins increased to 10.8 percent.

• BDS captured numerous key contract awards in the quarter, including: NASA's Commercial Crew spaceship program, with a potential value of $4.2 billion; and the first order for the 502 Phoenix small satellite.

• And our record backlog of more than 5,500 aircraft represents more than seven years of production at current rates.

• Our new technologically advanced airplanes not only have far better fuel efficiency and lower maintenance costs, but also often deliver higher passenger and cargo revenue, increased residual values, greater range, and a better overall passenger experience.

• Year to date, we have 45 orders and commitments for the 777.

Financials:

• Third-quarter revenue increased 7 percent to $23.8 billion, driven by growth in our Commercial Airplane business. Core operating margins increased to 10.2 percent, reflecting solid productivity gains in both businesses. Third-quarter core earnings per share increased 19 percent to $2.14 on higher volume and continued strong operating performance.

• In the third quarter, 787 deferred production costs increased $947 million to $25.2 billion.

• Defense, Space & Security reported a solid backlog of $60 billion, with 37 percent of our current backlog now from international customers.

• With regard to capital deployment, we paid $525 million in dividends to shareholders and repurchased 8 million shares for $1 billion in the third quarter.

• We expect to complete the remaining $5.8 billion repurchase authorization over approximately next one to two years.

• Returning cash to shareholders along with continued investment to support future growth remains a priority for us.

Guidance:

• We're increasing our core earnings per share guidance for 2014 by $0.20 to now be $8.10 to $8.30 on continued solid execution.

• Based on strong operating performance combined with the impact of timing of receipts and expenditures, we're increasing our operating cash flow guidance before pension contributions for 2014 to now be greater than $7 billion.

• We're lowering our outlook for capital spending by $200 million to now be approximately $2.3 billion for the year.

• We're also increasing our BCA operating margin guidance to be approximately

• 10.5 percent on improved operating performance.

• In summary, third quarter financial performance reflects the strength of our backlog, the strong demand for our products and services, and our continued focus on driving productivity throughout the enterprise.