The Boeing Company 2004 Annual Report the Boeing Company 2004 Annual Report
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BC112_Final Cover0302 3/6/05 10:49 PM Page fc1 The Boeing Company The Boeing Company The Boeing Company 2004 Annual Report 100 North Riverside Plaza Chicago, IL 60606-1596 U.S.A. 2004 Annual Report 0707-AR-050707-AR-05 Boeing ifc_ibc_0304 03.04.05 4:06 PM Page ifc1 Vision 2016: People working Shareholder Information The Boeing Company Electronic Proxy Receipt and Voting Duplicate Shareholder Accounts World Headquarters Shareholders have the option of voting their Registered shareholders with duplicate together as a global enterprise The Boeing Company proxies by Internet or telephone, instead of accounts may contact EquiServe for 100 North Riverside Plaza returning their proxy cards through the mail. instructions regarding the consolidation of Chicago, IL 60606-1596 Instructions are in the proxy statement and those accounts. The Company recom- for aerospace leadership. U.S.A. attached to the proxy card for the annual mends that registered shareholders always 312-544-2000 meeting. use the same form of their names in all Registered shareholders can go to stock transactions to be handled in the Strategies Values Transfer Agent, Registrar, Dividend www.econsent.com/ba to sign up to same account. Registered shareholders Run healthy core businesses Leadership Paying Agent and Plan Administrator receive their annual report and proxy state- may also ask EquiServe to eliminate excess The transfer agent is responsible for ment in an electronic format in the future. mailings of annual reports going to share- Leverage strengths into new products and services Integrity shareholder records, issuance of stock, Beneficial owners may contact the brokers holders in the same household. Open new frontiers Quality distribution of dividends and IRS Form or banks that hold their stock to find out 1099. Requests concerning these or whether electronic receipt is available. 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Boeing is the world’s leading aerospace company through network-centric operations; creating Stock Exchanges and the largest manufacturer of commercial jet- advanced technology solutions that reach across Boeing registered shareholders can also Investor Relations The Company’s common stock is traded obtain answers to frequently asked ques- The Boeing Company principally on the New York Stock business units; e-enabling airplanes and providing liners and military aircraft, with capabilities in tions on such topics as transfer instructions, Mail Code 5003-5016 Exchange; the trading symbol is BA. rotorcraft, electronic and defense systems, mis- connectivity on moving platforms; and arranging the replacement of lost certificates, con- 100 North Riverside Plaza Boeing common stock is also listed on the siles, satellites, launch vehicles and advanced financing solutions for our customers. solidation of accounts and book entry Chicago, IL 60606-1596 Amsterdam, Brussels, London, Swiss and shares through EquiServe’s home page on U.S.A. Tokyo stock exchanges. Additionally, the information and communication systems. Our Headquartered in Chicago, Illinois, U.S.A., the Internet at www.equiserve.com. stock is traded without being listed on the reach extends to customers in 145 countries Boeing employs more than 159,200 people in more Registered shareholders also have Company Shareholder Services Boston, Chicago, Cincinnati, Pacific and secure Internet access to their own Prerecorded shareholder information is Philadelphia exchanges. than 67 countries. This represents one of the most around the world, and we are the number one accounts through EquiServe’s home page available toll-free from Boeing Shareholder U.S. exporter in terms of sales. diverse, talented and innovative workforces any- (see above web site address). They can Services at 800-457-7723. You may also Independent Auditors Boeing has a long tradition of aerospace leader- where. More than 83,800 of our people hold view their account history, change their speak to a Boeing Shareholder Services Deloitte & Touche LLP address, certify their tax identification representative at 312-544-2815 between 180 North Stetson Avenue ship and innovation. We continue to expand our degrees — including more than 28,900 advanced number, replace checks, request duplicate 8:00 a.m. and 4:30 p.m. Central Time. Chicago, IL 60601-6779 product line and services to meet emerging degrees — in virtually every business and technical statements, make additional investments U.S.A. and download a variety of forms related to To Request an Annual Report, 312-946-3000 field from more than 2,800 colleges and universi- customer needs. Our broad range of capabilities stock transactions. If you are a registered Proxy Statement, Form 10-K or includes creating new, more efficient members of ties worldwide. 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Table of Contents Annual Meeting or call 425-393-4964 or 800-457-7723 The annual meeting of Boeing shareholders is scheduled to be held on Monday, Boeing on the Internet 1 Operational Highlights 18 Boeing Internal Services May 2, 2005. Details are provided in the The Boeing home page—www.boeing.com proxy statement. —is your entry point for viewing the latest 2Message to Shareholders 20 Financials Company information about its products 7 Executive Council 99 Selected Products, Programs and Services and people. You may also view electronic versions of the annual report, proxy state- 8Boeing Commercial Airplanes 105 Board of Directors ment, Form 10-K or Form 10-Q. 10 Boeing Integrated Defense Systems 106 Company Officers 12 Connexion by Boeing 107 Shareholder Information 14 Boeing Capital Corporation 16 Boeing Technology Printed in the U.S.A. 1-7_NEW_cvo03.09 3/9/05 4:22 PM Page 1 Operational Highlights Sharper focus on execution led to impressive operational performance in 2004. I Delivered solid growth and profitability, improving I Won $3.9 billion Multi-mission Maritime Aircraft revenues by 4.4 percent and earnings by 161 per- contract—with a potential value of $44 billion— cent over 2003; also increased earnings per share besting the 40-year incumbent to build next- by 164 percent. generation “submarine hunters.” I Generated strong cash flow of $3.5 billion after I Signed a $6 billion extension to expand the scope $4.4 billion in discretionary and nondiscretionary of the Future Combat Systems program and pension funding. accelerate delivery of technologies and capabili- ties to the U.S. Army. I Continued robust stock performance with Boeing stock appreciation of 22.9 percent in 2004, I Sold our commercial equipment financing busi- compared with 9 percent for the S&P 500, 14 per- ness to GE for more than $2 billion, strengthening cent for S&P 500 Aerospace and Defense Index an already strong cash balance; with strong and 3.2 percent for the Dow. operating cash flows, allowed Boeing Capital Corporation to retire more than $2 billion in debt. I Launched the 787 (formerly 7E7) Dreamliner with our largest-ever inaugural order, ending the year I Began initial deployment of Connexion by with customers ordering 56 787s and placing com- BoeingSM service on four airlines, and reached mitments for 70 additional airplanes. Announced definitive service agreements with three and sales in early 2005 brought the total to 193. preliminary agreements with four others. 2004 Financial Highlights (U.S. dollars in millions except per share data) 2004 2003 2002 2001 2000 Revenues 52,457 50,256 53,831 57,970 51,119 Net earnings* 1,872 718 492 2,827 2,128 Earnings per share* 2.24 0.85 2.84 3.40 2.37 Operating margins 3.8% 0.8% 6.4% 6.2% 6.0% Contractual backlog 109,600 104,812 104,173 106,591 120,600 *Before cumulative effect of accounting change. 1 1-7_NEW_cvo03.09 3/9/05 4:22 PM Page 2 Message to the Shareholders and Employees of The Boeing Company Lewis E. Platt Non-Executive Chairman 2 1-7_NEW_cvo03.09 3/9/05 4:23 PM Page 3 An intense focus on execution led to strongly im- Two, we understand the U.S.