Boeing

The Boeing Company
Formerly
Pacific Aero Products Co. (1916–1917)
Public
Traded as
Industry
Founded July 15, 1916; 102 years ago (1916-07-15) (as Pacific Aero Products Co.)
Seattle, Washington, U.S.
Founder William Boeing
Headquarters Boeing International Headquarters, ,
U.S.
Area served
Worldwide[1](p1)
Key people
Dennis Muilenburg
(Chairman, President & CEO)
Products
Production output
  • 806 commercial aircraft (2018)
  • 96 military aircraft (2018)
  • 2 satellites (2018)
Services
  • Leasing
  • Support solutions
[1](pp35–36)
Revenue Increase US$101.127 billion (2018)
Increase US$11.987 billion (2018)
Increase US$10.460 billion (2018)
Total assets Increase US$117.359 billion (2018)
Total equity Decrease US$410 million (2018)
Number of employees
153,027 (January 1, 2018)[2]
Divisions
[1]
Subsidiaries
Website www.boeing.com
Footnotes / references
[3]

The Boeing Company (/ˈbɪŋ/) is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, and missiles worldwide. The company also provides leasing and product support services. Boeing is among the largest global aerospace manufacturers; it is the fifth-largest defense contractor in the world based on 2017 revenue,[4] and is the largest exporter in the United States by dollar value.[5] Boeing stock is included in the Dow Jones Industrial Average.

Boeing was founded by William Boeing on July 15, 1916, in Seattle, Washington.[6] The present corporation is the result of the merger of Boeing with McDonnell Douglas on August 1, 1997. Former Boeing chair and CEO Philip M. Condit continued as the chair and CEO of the new Boeing, while Harry Stonecipher, former CEO of McDonnell Douglas, became the president and chief operating officer of the newly merged company.[6]

The Boeing Company has its corporate headquarters in Chicago, Illinois. The company is led by President and CEO Dennis Muilenburg.[7][8][9] Boeing is organized into five primary divisions: Boeing Commercial Airplanes (BCA); Boeing Defense, Space & Security (BDS); Engineering, Operations & Technology; Boeing Capital; and Boeing Shared Services Group. In 2017, Boeing recorded US$93.3 billion in sales, ranked 24th on the Fortune magazine "Fortune 500" list (2018),[10] ranked 64th on the "Fortune Global 500" list (2018),[11] and ranked 19th on the "World's Most Admired Companies" list (2018).[12]

History

The Boeing Company was started in 1916 when American timber salesperson William E. Boeing founded Aero Products Company. Shortly before doing so, he and Conrad Westervelt created the "B&W" seaplane.[13]

Environment

Environmental record

In 2006, the UCLA Center for Environmental Risk Reduction released a study showing that Boeing's Santa Susana Field Laboratory, in the Simi Hills of eastern Ventura County in Southern California, had been contaminated with toxic and radioactive waste. The study found that air, soil, groundwater, and surface water at the site all contained radionuclides, toxic metals, and dioxins; air and water additionally contained perchlorate, TCE, and hydrazines, while water showed the presence of PCBs as well.[14] Clean up studies and lawsuits are in progress.[15][16]

Jet biofuels

The airline industry is responsible for about 11% of greenhouse gases emitted by the U.S. transportation sector.[17] Aviation's share of the greenhouse gas emissions is poised to grow, as air travel increases and ground vehicles use more alternative fuels like ethanol and biodiesel.[17] Boeing estimates that biofuels could reduce flight-related greenhouse-gas emissions by 60 to 80%.[17] The solution blends algae fuels with existing jet fuel.[17]

Boeing executives said the company is informally collaborating with leading Brazilian biofuels maker Tecbio, Aquaflow Bionomic of New Zealand and other fuel developers around the world. So far, Boeing has tested six fuels from these companies, and will probably have gone through 20 fuels "by the time we're done evaluating them".[17] Boeing was also joining other aviation-related members in the Algal Biomass Organization (ABO) on June 2008.[18]

Air New Zealand and Boeing are researching the jatropha plant to see if it is a sustainable alternative to conventional fuel.[19] A two-hour test flight using a 50–50 mixture of the new biofuel with Jet A-1 in the number one position Rolls Royce RB-211 engine of 747-400 ZK-NBS, was successfully completed on December 30, 2008. The engine was then removed to be scrutinised and studied to identify any differences between the Jatropha blend and regular Jet A1. No effects to performances were found.

On August 31, 2010, Boeing worked with the U.S. Air Force to test the Boeing C-17 running on 50% JP-8, 25% Hydro-treated Renewable Jet fuel and 25% of a Fischer–Tropsch fuel with successful results.[20]

Electric propulsion

For NASA's N+3 future airliner program, Boeing has determined that hybrid electric engine technology is by far the best choice for its subsonic design. Hybrid electric propulsion has the potential to shorten takeoff distance and reduce noise.[21]

Political contributions, federal contracts, advocacy

In both 2008 and 2009, Boeing was second on the list of Top 100 US Federal Contractors, with contracts totaling US$22 billion and US$23 billion respectively.[22][23] Since 1995, the company has agreed to pay US$1.6 billion to settle 39 instances of misconduct, including US$615 million in 2006 in relation to illegal hiring of government officials and improper use of proprietary information.[24][25]

Boeing secured the highest ever tax breaks at the state level in 2013.[26]

Boeing's spent US$16.9 million on lobbying expenditures in 2009.[27][28] In the 2008 presidential election, Barack Obama "was by far the biggest recipient of campaign contributions from Boeing employees and executives, hauling in US$197,000 – five times as much as John McCain, and more than the top eight Republicans combined".[29]

Boeing has a corporate citizenship program centered on charitable contributions in five areas: education, health, human services, environment, the arts, culture, and civic engagement.[30][better source needed] In 2011, Boeing spent US$147.3 million in these areas through charitable grants and business sponsorships.[31] In February 2012, Boeing Global Corporate Citizenship partnered with the Insight Labs to develop a new model for foundations to more effectively lead the sector that they serve.[32][better source needed]

The company is a member of the U.S. Global Leadership Coalition, a Washington D.C.-based coalition of over 400 major companies and NGOs that advocates for a larger International Affairs Budget, which funds American diplomatic and development efforts abroad.[33] A series of U.S. diplomatic cables show how U.S. diplomats and senior politicians intervene on behalf of Boeing to help boost the company's sales.[34]

In 2007 and 2008, the company benefited from over US$10 billion of long-term loan guarantees, helping finance the purchase of their commercial aircraft in countries including Brazil, Canada, Ireland and the United Arab Emirates, from the Export-Import Bank of the United States, some 65% of the total loan guarantees the bank made in the period.[35]

In December 2011, the non-partisan organization Public Campaign criticized Boeing for spending US$52.29 million on lobbying and not paying taxes during 2008–2010, instead getting US$178 million in tax rebates, despite making a profit of US$9.7 billion, laying off 14,862 workers since 2008, and increasing executive pay by 31% to US$41.9 million in 2010 for its top five executives.[36]

Divisions

Boeing plant in Ridley Park, Pennsylvania – a building with aluminum siding, parking lot in front, and a flagpole with seven flags
Boeing plant in Ridley Park, Pennsylvania

The two largest divisions are Boeing Commercial Airplanes and Boeing Defense, Space & Security (BDS).[37]

Financial numbers

For the fiscal year 2017, Boeing reported earnings of US$8.191 billion, with an annual revenue of US$93.392 billion, a 1.25% decline over the previous fiscal cycle. Boeing's shares traded at over $209 per share, and its market capitalization was valued at over US$206.6 billion.[38]

Year Revenue
in million US$
Net income
in mil. US$
Price per Share
in US$
Employees
2005 53,621 2,572 45.42
2006 61,530 2,215 59.20
2007 66,387 4,074 71.05
2008 60,909 2,672 50.76
2009 68,281[39] 1,312 35.73
2010 64,306[40] 3,298 53.89
2011 68,735[41] 4,009 58.20
2012 81,698[42] 3,900 62.65
2013 86,623[43] 4,578 90.39 168,400
2014 90,762[44] 5,440 114.72 165,500
2015 96,114[45] 5,172 131.43 161,400
2016 94,571[46] 4,892 125.66 150,500
2017 93,392[47] 8,191 209.85 140,800

Between 2010 and 2018, Boeing increased its operating cash flow from $3 to $15.3 billion, sustaining its share price, by negotiating advance payments from customers and delaying payments to its suppliers. This strategy is sustainable only as long as orders are good and delivery rates are increasing.[48]

Employment numbers

The company's employment count is listed on its website below.

Employment by division
(Feb 8, 2019) [49]
Group Employees
Boeing Commercial Airplanes (BCA) 63,715
Boeing Defense, Space & Security (BDS) 36,742
Corporate 29,520
Global Services 23,050
Total Company 153,027
Employment by location
(Feb 8, 2019) [49]
Location Employees
Alabama 3,049
Arizona 4,336
California 12,869
Missouri 14,566
Oklahoma 3,158
Pennsylvania 4,580
South Carolina 7,343
Texas 3,860
Washington 69,830
Other Locations 29,436
Total Company 153,027

Approximately 1.5% of Boeing employees are in the Technical Fellowship program, a program through which Boeing's top engineers and scientists set technical direction for the company.[50] The average salary at Boeing is $76,784, reported by former employees.[51]

Corporate governance

Board of directors[edit]

Chief executive officer[edit]

1933–1939 Clairmont "Claire" L. Egtvedt[54]
1939–1944 Philip G. Johnson
1944–1945 Clairmont L. Egtvedt
1945–1968 William M. Allen
1969–1986 Thornton "T" A. Wilson
1986–1996 Frank Shrontz[55]
1996–2003 Philip M. Condit
2003–2005 Harry C. Stonecipher
2005 James A. Bell (acting)
2005–2015 James McNerney
2015–present Dennis Muilenburg[56]

Chairman of the board[edit]

1916–1934 William E. Boeing
1934–1939 Clairmont L. Egtvedt (acting)
1939–1966 Clairmont L. Egtvedt
1968–1972 William M. Allen
1972–1987 Thornton "T" A. Wilson
1988–1996 Frank Shrontz
1997–2003 Philip M. Condit
2003–2005 Lewis E. Platt
2005–2016 James McNerney
2016–present Dennis Muilenburg

President[edit]

1922–1925 Edgar N. Gott[57]
1926–1933 Philip G. Johnson
1933–1939 Clairmont L. Egtvedt
1939–1944 Philip G. Johnson
1944–1945 Clairmont L. Egtvedt
1945–1968 William M. Allen
1968–1972 Thornton "T" A. Wilson
1972–1985 Malcolm T. Stamper
1985–1996 Frank Shrontz
1996–1997 Philip M. Condit
1997–2005 Harry C. Stonecipher
2005 James A. Bell (acting)
2005–2013 James McNerney
2013–present Dennis Muilenburg[58]

See also

References

  1. ^ a b c "The Boeing Company 2012 Form 10-K Annual Report, p. 6". Archived from the original on January 24, 2016. Retrieved October 1, 2013.
  2. ^ "Employment Data". Boeing
  3. ^ "Boeing FY2018".
  4. ^ "Top 100 for 2018" (based on 2017 data). Defense News. Retrieved November 3, 2018.
  5. ^ "Boeing says it's flying high despite recession". USA Today, March 27, 2009.
  6. ^ a b "Boeing history chronology" (PDF). Boeing.
  7. ^ "Boeing Names Muilenburg Chief Executive Officer" (Press release). Boeing. June 23, 2015.
  8. ^ Jon Ostrower (June 24, 2015). "Boeing Names Muilenburg CEO, Succeeding McNerney". WSJ.
  9. ^ "Contact Us." Boeing. Retrieved on May 12, 2009.
  10. ^ "Boeing". Fortune. Retrieved November 9, 2018.
  11. ^ "Boeing". Fortune. Retrieved November 9, 2018.
  12. ^ "Boeing". Fortune. Retrieved June 30, 2017.
  13. ^ "Boeing Company - Description, History, & Aircraft". Encyclopedia Britannica.
  14. ^ "Center for Environmental Risk Reduction, UCLA". Ph.ucla.edu. February 2, 2006. Retrieved May 21, 2011.
  15. ^ "SSFL". Acmela.org. Retrieved May 21, 2011.
  16. ^ "State DTSC-SSFL info website". Dtsc-ssfl.com. Retrieved October 28, 2011.
  17. ^ a b c d e Ángel González (August 30, 2007). "To go green in jet fuel, Boeing looks at algae". The Seattle Times. Retrieved January 27, 2009.
  18. ^ First Airlines and UOP Join Algal Biomass Organization, Green Car Congress, June 19, 2008.
  19. ^ Air NZ sees biofuel salvation in jatropha. Archived July 23, 2009, at the Wayback Machine
  20. ^ "C-17 uses biofuel for flight tests". Edwards.af.mil. August 31, 2010. Retrieved May 21, 2011.
  21. ^ "Boeing Feature Story: Envisioning tomorrow's aircraft". Boeing. August 16, 2010. Archived from the original on September 6, 2013. Retrieved May 21, 2011.
  22. ^ "Top 100 Contractors Report – Fiscal Year 2009". fpds.gov. Retrieved January 4, 2011.
  23. ^ "Top 100 Contractors Report – Fiscal Year 2008". fpds.gov. Retrieved January 4, 2011.
  24. ^ "Contractor Case – Boeing Company". Project on Government Oversight. Retrieved January 5, 2011.
  25. ^ "Federal Contractor Misconduct Database". Project on Government Oversight. Retrieved January 5, 2011.
  26. ^ Berman, Jillian (November 15, 2013). "Biggest Tax Break In U.S. History May Not Be Enough For Boeing". Huffington Post. Retrieved November 4, 2016.
  27. ^ "Boeing Co Lobbying Expenditure". Center for Responsive Politics. Retrieved January 5, 2011.
  28. ^ "Lobbying Disclosure Act Database". United States Senate. Retrieved January 5, 2011.
  29. ^ Carney, Timothy (April 24, 2011) Boeing lives by big government, dies by big government, Washington Examiner
  30. ^ "Boeing Corporate Citizenship Report 2011". Boeing. Archived from the original on March 6, 2012. Retrieved September 19, 2012.
  31. ^ "Boeing Corporate Citizenship Report 2011". Archived from the original on September 22, 2012. Retrieved September 19, 2012.
  32. ^ "Blessed are the Grantmakers". Insight Labs. February 3, 2012. Archived from the original on April 12, 2013. Retrieved September 19, 2012.
  33. ^ "U.S. Global Leadership Coalition, Global Trust members". Usglc.org. Retrieved May 21, 2011.
  34. ^ Lipton, Eric; Clark, Nicola; Lehren, Andrew W. (January 2, 2011). "Diplomats Help Push Sales of Jetliners on the Global Market". The New York Times. Retrieved January 5, 2011.
  35. ^ "Pew Analysis Shows More than 60% of Export-Import Bank Loan Guarantees Benefitted Single Company". The Pew Charitable Trusts. Archived from the original on May 5, 2011. Retrieved January 5, 2011.
  36. ^ Portero, Ashley (December 9, 2011). "30 Major U.S. Corporations Paid More to Lobby Congress Than Income Taxes, 2008–2010". International Business Times. Archived from the original on December 26, 2011. Retrieved December 26, 2011.
  37. ^ a b "Boeing in Brief". Boeing. Retrieved January 16, 2011.
  38. ^ "Boeing Revenue 2006-2018 | BA". macrotrends.net. Retrieved October 27, 2018.
  39. ^ The Boeing Company 2009 Annual Report (PDF)
  40. ^ The Boeing Company 2010 Annual Report (PDF)
  41. ^ The Boeing Company 2011 Annual Report (PDF)
  42. ^ The Boeing Company 2012 Annual Report (PDF)
  43. ^ The Boeing Company 2013 Annual Report (PDF)
  44. ^ The Boeing Company 2014 Annual Report (PDF)
  45. ^ The Boeing Company 2015 Annual Report (PDF)
  46. ^ The Boeing Company 2016 Annual Report (PDF)
  47. ^ The Boeing Company 2017 Annual Report (PDF)
  48. ^ Dominic Gates (February 8, 2019). "For Boeing, juggling cash flow often means "another 'Houdini moment'"". Seattle Times.
  49. ^ a b Employment Data. Boeing. Retrieved Oct 25, 2018.
  50. ^ "Go To Gang Boeing Frontiers Magazine" (PDF). Retrieved May 21, 2011.
  51. ^ "Top 10 Best Companies for U.S. Veterans: Boeing". Archived from the original on May 30, 2011. Retrieved June 14, 2011.
  52. ^ "Boeing: Corporate Governance".
  53. ^ "Boeing Board Elects Caroline Kennedy as New Director". Boeing Press Release.
  54. ^ Clairmont L. Egtvedt biography, Boeing.
  55. ^ Frank Shrontz biography, Boeing.
  56. ^ "Boeing Promotes Dennis Muilenburg To Top Job". Forbes. July 23, 2015.
  57. ^ Edgar N. Gott biography Archived May 11, 2008, at the Wayback Machine, Boeing.
  58. ^ "Executive Biography of Dennis A. Muilenburg". Boeing.

Further reading

  • Cloud, Dana L. We Are the Union: Democratic Unionism and Dissent at Boeing. Urbana, IL: University of Illinois Press, 2011.
  • Greider, William. One World, Ready or Not: The Manic Logic of Global Capitalism. London: Penguin Press, 1997.
  • Reed, Polly. Capitalist Family Values: Gender, Work, and Corporate Culture at Boeing. Lincoln, NE: University of Nebraska Press, 2015.

External links

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