2:00PM New York – Boeing revenue rose 4% and earnings gained 38% in the first quarter. Backlog at the end of the quarter reached $346 billion.

The Boeing Company today reported revenue increased 4% first quarter 2008 to $16.0 billion from $15.3 billion of 2007.

First quarter net income increased 38% to $1.2 billion or $1.62 per share compared to $877 million or $1.13 per share in the same quarter of 2007. Operating margin expanded to 11.3% as revenue rose to $16.0 billion. Operating cash flow more than doubled to $1.9 billion. Backlog reached a record $346 billion.

Total company backlog at quarter-end reached a record $346 billion, up 32 percent in the last year, with growth in the quarter driven by commercial airplane and V-22 multi-year orders.

Commercial airplanes revenues rise on weak dollar

Commercial airplanes first-quarter revenues rose to $8.2 billion on an 8% increase in airplane deliveries and higher services volume, partially offset by lower aircraft trading volume. Earnings from operations increased 39% to $983 million.

During the quarter, the company delivered its 1,400th 747 airplane and its 700th 777 airplane and booked 289 gross orders during the quarter. Contractual backlog rose to a record $271 billion.

The program won 75 orders in the quarter and total firm orders since launch rose to 892 airplanes from 57 customers.

Defense revenue declines 2%

Boeing defense revenue in the quarter fell 2% to $7.56 billion and operating margins rose 1.2% to 11.4%.

Precision engagement & mobility systems delivered first-quarter operating earnings of $389 million on $3.3 billion in revenue and backlog increased during the quarter to $74.8 billion driven by the new V-22 multi-year procurement contract.

Network & space systems revenue fell 3% to $2.7 billion and operating margin nearly doubled to 9.9% driven by healthy performance across the segment and a favorable settlement on a satellite program.

Support systems revenue rose 1% to $1.6 billion and operating margin of 12.5% and earnings was unchanged at $204 million.

The backlog in the defense division at the end of the quarter was at $74.8 billion on new V 22 multi-year procurement program.

Boeing capital’s earnings declines

Boeing capital pre-tax earnings fell to $61 million from $73 million from a year ago.

Boeing capital’s portfolio balance at the end of the quarter was $6.3 billion, down 20% from $7.9 billion last year primarily on customer prepayments, normal portfolio run-off and depreciation.

The capital corporation contributed $35 million in cash dividends to the company during the quarter. BCC''s debt-to-equity ratio was unchanged at 5.0-to-1.

2008 and 2009 Outlook

Boeing’s 2008 revenue guidance is unchanged at between $67 billion and $68 billion. For 2009, the company expects revenues between $72 billion and $73 billion. Boeing reaffirmed its guidance for 2008 between $5.70 and $5.85 per share and for 2009 between $6.80 and $7.00.