DTS provides enhanced targeting capability for the Super Hornet. It is part of the U.S. Navy's F/A-18E/F Network Centric Warfare Upgrades program and the F/A-18E/F Flight Plan, which will ensure that the Super Hornet remains ahead of emerging threats in coming decades.

The Navy granted approval for Low Rate Initial Production of DTS following successful completion of initial operational assessment flight testing at Naval Air Weapons Station China Lake, Calif., and Naval Air Station Patuxent River, Md., between September 2010 and March 2011. Air Test and Evaluation Squadrons VX-31 and VX-23 conducted the tests.

"Distributed targeting is going to be a real game-changer for Super Hornet aircrews," said Kevin Fogarty, Boeing F/A-18 and EA-18G Mission Systems director.

"DTS increases pilot and aircrew situational awareness and precision targeting when engaging air-to-ground targets, in part by using geo-registration technology."

Geo-registration technology compares images taken from tactical sensors with an onboard imagery database to produce highly accurate target coordinates.

DTS is on schedule to achieve Initial Operational Capability in January 2013.

The Boeing Super Hornet is a multirole aircraft, able to perform virtually every mission in the tactical spectrum, including air superiority, day/night strike with precision-guided weapons, fighter escort, close air support, suppression of enemy air defenses, maritime strike, reconnaissance, forward air control and tanker missions.

Boeing has delivered more than 480 F/A-18E/Fs to the U.S. Navy. Every Super Hornet produced has been delivered ahead of schedule and on budget.

"Boeing and Thales' individual expertise and shared strengths, as well as a strong working relationship spanning more than 15 years, have enabled the design of a truly integrated, cost-effective, low-risk aircrew training solution for the ADF," said Kim Gillis, managing director of Boeing Defence Australia. "The Eurocopter EC135 is the ideal helicopter for this mission."

A fleet of more than 1,000 EC135 aircraft worldwide has amassed 2.2 million flight hours to date. The helicopter is part of successful training systems in Germany, Switzerland, Spain, and Japan, and in Australia with the Victorian and New South Wales police forces.

"The EC135 is an ideal training helicopter for defense forces operating new-generation multi-role or combat helicopters, with great maneuverability, high visibility and the most advanced technologies to help instructors perform training missions safely," said Olivier Lambert, Eurocopter senior vice president, Sales & Customer Relations. "Eurocopter is very pleased that the Boeing and Thales team has demonstrated its confidence in our product by selecting the EC135 as their preferred platform."

The Boeing and Thales team conducted a rigorous evaluation of available twin-engine helicopters to identify the aircraft that best met the Commonwealth's training systems goals.

"Thorough flight and ground assessments of the EC135 and its suitability for both ab initio training and as a lead-in trainer to more complex and larger helicopters made it clear the EC135 was the optimum platform to meet the ADF's requirements," said Gillis. "The aircraft's support base, both locally and internationally, presents a significantly lower cost of operation than other aircraft in its class, reducing project-establishment and through-life-support risk."

The Boeing and Thales HATS solution draws on Boeing's sophisticated design tools and extensive aircrew training systems experience, combined with Thales' simulation capabilities, to deliver an ab initio rotary wing training system for all Royal Australian Navy and Australian Army helicopter aircrew.

The Boeing and Thales team has adopted a systems training and engineering approach to development that optimizes training throughput and learning outcomes and reduces life cycle cost, underpinned by a strong focus on safety and military ethos. The solution also draws on Boeing's experience delivering rotary wing training to the ADF for more than 15 years and is backed by the support of The Boeing Company's Training Systems & Government Services business.

Thales Australia is a trusted partner of the Australian Defence Force and is also present in commercial sectors ranging from air traffic management to security systems and services. Employing around 3,300 people in over 35 sites across the country, Thales Australia recorded revenues of around AUD 900 million in 2010.

Boeing Defence Australia, a wholly owned subsidiary of The Boeing Company and a business unit of Boeing Defense, Space & Security, is a leading Australian aerospace enterprise. With a world-class team of about 1,500 employees at 15 locations throughout Australia and four international sites, Boeing Defence Australia supports some of the largest and most complex defense projects in Australia.

Net income for the full year increased to $4.0 billion, or $5.34 per share, on revenue of $68.7 billion, which included the impact of the favorable tax settlement ($0.53 per share for the year). Full-year 2010 results included the $0.50 per share favorable tax settlement and a $0.20 per share tax charge resulting from health care legislation.

Earnings guidance for 2012 has been established at between $4.05 and $4.25 per share reflecting solid core performance and higher pension expense. Revenue guidance for 2012 is between $78 and $80 billion.

Fourth-Quarter 2011

• Earnings per share rose to $1.84, driven by strong core performance
• EPS includes favorable tax settlement of $0.52 compared with $0.50 in 2010
• Revenue rose to $19.6 billion on increased commercial airplane deliveries

Full Year 2011

• Earnings per share increased 20 percent to $5.34 on record revenue of $68.7 billion
• Operating cash flow increased 36 percent to $4.0 billion
• Backlog grew to a record $356 billion including $103 billion of orders during the year

Outlook for 2012

• EPS guidance of between $4.05 and $4.25 reflects strong operating performance offset by $0.83 of higher pension expense
• Revenue guidance established at between $78 and $80 billion
• Operating cash flow guidance set at greater than $5.0 billion includes $1.5 billion of discretionary pension contributions

"Strong fourth-quarter operating performance, record revenue and backlog, and expanded earnings and cash flow capped a year of substantial progress for Boeing in 2011," said Jim McNerney, Boeing chairman, president, and chief executive officer. "Major accomplishments of our team during the year included certifying and delivering the first 787s and 747-8s, winning the U.S. Air Force Tanker program, launching the 737 MAX, and securing both an important U.S. missile defense contract and a key agreement for F-15s to Saudi Arabia."

"We enter 2012 with renewed momentum, and proven business and product strategies. With a record backlog and intense focus on productivity, we are well positioned to deliver growth and increased competitiveness, even as we face constrained U.S. defense spending and pension headwinds. Our priorities for the year are to continue with disciplined increases in production rates for our commercial airplane customers, and to build on our strong position in defense, space and security with aggressive pursuit of growth in core, adjacent and international markets," he said.

Boeing's quarterly operating cash flow was $2.9 billion, with strong operating performance more than offsetting continued investment in the 787 and 747-8 programs. For the full year, operating cash flow was $4.0 billion. Free cash flow* was $2.4 billion in the quarter (Table 2).

Cash and investments in marketable securities totaled $11.3 billion at year-end (Table 3), up from $9.2 billion at the beginning of the quarter. Debt was unchanged in the quarter.

Total company backlog at year-end was a record $356 billion, up from $332 billion at the beginning of the quarter. Net orders for the quarter were $42 billion and included a significant mix of wide-body commercial airplanes. Backlog is up $34.6 billion from prior year-end, reflecting $103 billion of net orders in 2011.

Segment Results

Commercial Airplanes

Boeing Commercial Airplanes fourth-quarter revenue increased by 31 percent to $10.7 billion on higher delivery volume and mix. Operating margin was 9.2 percent, reflecting lower R&D partially offset by the dilutive impact of initial 787 and 747-8 deliveries and higher period costs (Table 4).

For the full year, revenue increased by 14 percent on higher delivery volume, increased services revenue and mix. Operating margin was 9.7 percent, reflecting improved mix and lower R&D partially offset by higher period costs and the dilutive impact of initial 787 and 747-8 deliveries.

During the quarter, the first 747-8 Freighter was delivered to Cargolux and the 747-8 Intercontinental achieved FAA certification. Also during the quarter, the company and the International Association of Machinists & Aerospace Workers reached agreement on a four-year contract extension primarily related to machinists in Puget Sound.

At year-end, the company had over 1,000 orders and commitments for the 737 MAX, including 150 firm orders from launch customer Southwest Airlines.

Commercial Airplanes booked 379 net orders during the quarter and 805 during the full year. Backlog remains strong with more than 3,700 airplanes valued at a record $296 billion.

Boeing Defense, Space & Security

Boeing Defense, Space & Security's fourth-quarter revenue increased by 4 percent to $8.5 billion, while operating margin was 10.2 percent (Table 5).

For the full year, revenue was unchanged at $32.0 billion. Operating margin increased to 9.9 percent, driven by higher Boeing Military Aircraft (BMA) margins.

BMA fourth-quarter revenue increased to $3.9 billion, due to Airborne Early Warning & Control (AEW&C) mix and higher KC-767 International Tanker deliveries partially offset by fewer C-17 deliveries. Operating margin increased to 9.5 percent, reflecting strong execution across various programs. Fourth-quarter 2010 included charges for higher costs on the AEW&C program. During the quarter, the U.S. Government and Saudi Arabia reached agreement on the purchase of 84 new F-15SA aircraft and upgrades to an additional 70 F-15Ss. Additionally, BMA was awarded the P-8A low rate initial production lot II production award from the U.S. Navy.

Network & Space Systems (N&SS) fourth-quarter revenue decreased to $2.0 billion, due to lower volume driven by termination of the Brigade Combat Team Modernization program. Operating margin decreased to 8.6 percent, reflecting higher R&D. During the quarter, N&SS was awarded the development and sustainment contract for Ground-based Midcourse Defense from the U.S. Missile Defense Agency. Also during the quarter, N&SS delivered the first 702 medium power satellite.

Global Services & Support (GS&S) fourth-quarter revenue increased to $2.6 billion, due to higher revenues in integrated logistics. Operating margin decreased to 12.6 percent, reflecting the current defense contracting environment. During the quarter, GS&S was awarded the C-17 Globemaster III Integrated Sustainment Program from the U.S. Air Force.

Backlog at Defense, Space & Security was $60 billion.

Read Full Report, detailed with tables, etc., at Boeing's website

“This new aircraft sale brings our Chinook backlog to more than 200 aircraft for both domestic and international customers worldwide,” said Leanne Caret, H-47 Programs vice president. “Boeing’s recent $130 million investment to create a world-class Chinook manufacturing facility near Philadelphia means we are well positioned to respond to this demand.”

Seven of the new Chinooks will be delivered to the Australian Defence Force and six aircraft will be delivered to the United Arab Emirates under the terms of a previously announced Foreign Military Sales agreement between the U.S. government and the two countries. One additional aircraft is to be delivered to the U.S. Army to fulfill its own requirements.

“This sale is indicative of the tremendous interest from customers around the world who need best-in-class, multirole heavy-lift capabilities for military and humanitarian missions,” Caret added.

The H-47 program is at the midpoint of executing a multiyear contract for 191 CH-47F Chinook aircraft that was awarded in August 2008 and originally valued at $4.3 billion. In November, Boeing submitted a proposal to the U.S. government for a second multiyear contract for 155 Chinooks for the U.S. Army. This second five-year, firm fixed-price proposal would provide the Army with close to the full complement of 464 Chinooks outlined in the Department of Defense program of record and would yield double-digit percentage savings over a single-year procurement strategy. A decision is expected early next year.

Since completing the first CH-47F production aircraft in August 2006, Boeing has trained and equipped eight U.S. Army units and is in the process of equipping the ninth. Six units have completed deployments in Iraq and Afghanistan, where the helicopter has logged nearly 70,000 flight hours and maintained an operational readiness rate of more than 85 percent conducting air assault, transport, medical evacuation and support operations.

There are more than 450 Chinooks in operation with military forces in 17 countries around the world. International operators include Japan, United Kingdom, Italy, Netherlands, Australia, Canada, Thailand, Taiwan, Greece, Korea and Spain.

A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world’s largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $32 billion business with 63,000 employees worldwide.

"Today's award is the culmination of a two-year proposal process that brought together a broad industry group committed to delivering innovative solutions and a cost-effective approach to program management and execution," said Dennis Muilenburg, president and CEO of Boeing Defense, Space & Security. "We are privileged to have been partners with the Missile Defense Agency through development and deployment of the GMD system, and now with Northrop Grumman, we are honored to continue that partnership in this next phase of the program."

Under the DSC, Boeing will continue to lead the industry team for GMD development, integration, testing, operations and sustainment activities, building on the company's experience of supporting the Missile Defense Agency as prime contractor for the program since 2001. As strategic partner, Northrop Grumman will oversee the ground system elements, as well as provide key support in operations and sustainment, system engineering and system test.

"The DSC ushers in a new era for the GMD program, and our partnership with Boeing brings together the very best minds in the industry for this national security capability," said Wes Bush, chairman, CEO and president, Northrop Grumman. "By combining Northrop Grumman's 50-year experience and success on the nation's Minuteman ICBM program with Boeing's heritage GMD leadership, we provide the optimum mix of integrated development and sustainment capabilities for a system that demands nothing less."

The Boeing-led team currently operates and sustains the deployed GMD weapon system while developing and testing new technologies to provide increased reliability and to meet evolving customer needs and requirements. Northrop Grumman has been part of the team since 1998, responsible for designing and deploying the command-and-control systems that form the backbone of the GMD ground system.

"In selecting the Boeing and Northrop Grumman GMD team, the Missile Defense Agency retains the knowledge, skill and expertise of the world-class men and women who developed this one-of-a-kind system -- the only industry team capable of affordable innovation for GMD's future," said Norm Tew, Boeing vice president and program director of GMD. "We believe the government conducted a fair and open competition, making the right decision for the future of the program."

An integral element of the Global Ballistic Missile Defense System, GMD uses radars, other sensors, command-and-control facilities, communications terminals and a 20,000-mile fiber optic communications network. There are more than 20 operational interceptors at Vandenberg Air Force Base, Calif., and Fort Greely, Alaska, to defend the United States against long-range ballistic missile threats.

Northrop Grumman is a leading global security company providing innovative systems, products and solutions in aerospace, electronics, information systems, and technical services to government and commercial customers worldwide.

Boeing is the largest aerospace company in Alabama and one of the state's largest employers. Current company operations in Huntsville include the Ground-based Midcourse Defense program and other missile defense work, including the Standard Missile-3 Block IIB program, the Arrow system and the Patriot Advanced Capability-3 seeker, as well as support of Space Exploration Launch Systems, the International Space Station, Army Integrated Logistics, and engineering support for commercial and commercial-derivative airplanes.

A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world's largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $32 billion business with 63,000 employees worldwide.

The aircraft was delivered ahead of schedule to ROKAF Base Gimhae, the main operating base for the Peace Eye fleet. Peace Eye No. 2 is the first aircraft in the fleet to be modified into an AEW&C configuration by Korea Aerospace Industries (KAI) at its facility in Sacheon.

"The quality of KAI's work has been outstanding. Their commitment to excellence, their focus and their technical expertise were critical to the achievement of this major milestone," said Randy Price, Peace Eye program manager for Boeing.

Two additional Peace Eye aircraft are being modified by KAI in Sacheon and will be delivered to the ROKAF in 2012.

The Peace Eye program includes four 737 AEW&C aircraft plus ground support segments for mission crew training, mission support and system maintenance. 737-based AEW&C aircraft also are in production for the governments of Australia and Turkey.

Based on the Boeing Next-Generation 737-700 commercial airplane, the 737 AEW&C aircraft is designed to provide airborne-battle-management capability with an advanced multirole electronically scanned radar and 10 state-of-the-art mission crew consoles that are able to track airborne and maritime targets simultaneously. The mission crew can direct offensive and defensive forces while maintaining continuous surveillance of the operational area.

A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world's largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $32 billion business with 63,000 employees worldwide.

The contract covers design, development and installation of retrofit kits that will provide enhanced navigation, targeting and situational awareness.

The upgrade program includes:

• GPS improvements
• A color, moving-map cockpit display
• Identification Friend or Foe Interrogation capabilities
• Addition of the Joint Helmet Mounted Cueing System
• Maintenance and air crew training for these systems.

“These upgrades will deliver enhanced capability for the RMAF fleet to remain effective, interoperable with allies and operationally relevant for years to come,” said Julie Praiss, Boeing Global Services & Support director of Tactical Aircraft & Weapons Support. “Boeing looks forward to our continued partnership with the Royal Malaysian Air Force and the U.S. Navy to ensure that these F/A-18Ds continue to serve Malaysia’s strike and interdiction mission needs.”

The upgrades also make the RMAF’s F/A-18Ds more compatible with the F/A-18E/F Super Hornet, which Boeing is offering to meet Malaysia’s Multi-Role Combat Aircraft needs.

The government of Malaysia ordered eight F/A-18D Hornets in 1993. Since delivering all aircraft on schedule in 1997, Boeing has been providing sustainment support for the fleet at the RMAF base in Butterworth, Malaysia. These support programs include engineering and logistics support, pilot training and technical publications.

Boeing provides life-cycle support solutions, services and upgrades for F/A-18 Hornet fleets worldwide, including for the U.S. Navy and Marine Corps, the Royal Australian Air Force, the Royal Canadian Air Force, the Finnish Air Force, the Kuwait Air Force, the Spanish Air Force, the Swiss Air Force and the RMAF.

The combat-proven F/A-18 Hornet is a twin-engine, multi-mission, tactical aircraft. It converts between air-to-air fighter missions and air-to-ground strike missions while on the same sortie with the flick of a switch. Currently serving the armed services of eight nations, the Hornet can be used for fighter escort, suppression of enemy air defenses, reconnaissance, forward air control, close air support, and day and night strike missions.

A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world’s largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $32 billion business with 63,000 employees worldwide.

“The Dubai Air Show is one of the world's fastest growing aerospace events and it presents an excellent opportunity for Bell Boeing to showcase the tiltrotor Osprey's one-of-a-kind capability, unique value proposition and outstanding record of operational performance with a new audience,” said John Rader, executive director of the Bell Boeing V-22 Program. “The V-22 is the right solution for Middle East customers seeking range, speed, payload, and mission flexibility for military and humanitarian operations.”

The Dubai International Air Show is a biennial show held in Dubai, United Arab Emirates. It is organized in cooperation with the Government of Dubai, the Department of Civil Aviation and Dubai International Airport in collaboration with the UAE Union Defense Forces. Now in its 22nd year, the show is a key international aerospace show.

The V-22 Osprey is a joint service, multirole combat aircraft that uses tiltrotor technology to combine the vertical performance of a helicopter with the speed and range of a fixed-wing aircraft. With its nacelles and rotors in vertical position, it can take off, land and hover like a helicopter. Once airborne, its nacelles can be rotated to transition the aircraft to a turboprop airplane capable of high-speed, high-altitude flight.

The Osprey is currently flown by the U.S. Marine Corps and Air Force Special Operations Command (AFSOC) and the operational fleet has amassed more than 130,000 flight hours, nearly half of which have come in the past two years. A total of 10 Marine Corps and two AFSOC squadrons are operational today, and the two services have together logged 16 successful combat, humanitarian, ship-based or Special Operations deployments since 2007.

“The V-22 is proven and forward-deployed, supporting combat operations and responding to contingency operations around the world,” said Marine Corps Col. Greg Masiello, head of the V-22 Joint Program Office (PMA-275) at the U.S. Naval Air Systems Command (NAVAIR). “The Osprey brings unprecedented range, speed and survivability to the warfighter and will continue to excel in combat and remain ready, effective and survivable.”

According to Naval Safety Center records, the MV-22 has had the lowest Class A mishap rate of any rotorcraft in the Marine Corps during the past decade. The aircraft’s reduced susceptibility, lower vulnerability and advanced crashworthiness have made it the most survivable military rotorcraft ever introduced.

“At 130,000 flight hours, safety, survivability and operational efficiency have become standards of the operational fleet,” said Willie Andersen, deputy program director for the Bell Boeing V-22 Program.

In early November, the Naval Air Systems Command Joint V-22 program office was awarded a U.S. Department of Defense Packard Award for efforts in reducing cost-per-flight-hour. Fiscal Year 2010 Navy flight-hour cost data also show that the Osprey has the lowest cost-per-seat-mile (cost to transport one person over a distance of one mile) of any U.S. Navy transport rotorcraft.

More than 150 Osprey tiltrotors are currently in operation. Marine Corps MV-22s are currently deployed in Afghanistan supporting Operation Enduring Freedom and with the 22nd Marine Expeditionary Unit supporting contingency operations, while AFSOC CV-22s are deployed in support of ongoing Special Operations missions.

A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world’s largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $32 billion business with 64,000 employees worldwide.

LRIP-II is the follow-on to an initial LRIP-I contract awarded in January to provide six Poseidon aircraft. Overall, the Navy plans to purchase 117 Boeing 737-based P-8A anti-submarine warfare, anti-surface warfare, intelligence, surveillance and reconnaissance aircraft to replace its P-3 fleet.

As part of the contract, Boeing will provide aircrew and maintenance training for the Navy beginning in 2012, in addition to logistics support, spares, support equipment and tools. The training system will include a full-motion, full-visual Operational Flight Trainer that simulates the flight crew stations, and a Weapons Tactics Trainer for the mission crew stations.

"This contract is the result of the Boeing and Navy team's hard work and commitment, and moves us a step closer to P-8A full-rate production," said Chuck Dabundo, Boeing vice president and P-8 program manager. "We've assembled and flown the first LRIP plane and continue to focus on building P-8A aircraft on cost and on schedule."

"LRIP-II brings the P-8A program one step closer to delivering the Poseidon to the fleet," said Capt. Scott Dillon, P-8A deputy program manager for the Navy.

Boeing completed assembly of the first LRIP-I aircraft at its Renton, Wash., facility this summer. The aircraft subsequently completed a successful first flight July 7, 2011, from Renton Field to Boeing Field, which marked its transition from fabrication and assembly to mission system installation and checkout in Seattle.

The Poseidon team is using a first-in-industry in-line production process that draws on Boeing's Next-Generation 737 production system. All P-8A-unique aircraft modifications are made in sequence during fabrication and assembly.

The team has built and is testing six flight-test and two ground-test aircraft under the U.S. Navy System Development and Demonstration contract awarded to Boeing in 2004. Four flight-test aircraft -- T1, T2, T3 and T5 -- are conducting testing at Naval Air Station Patuxent River, Md. The program's static test plane, S1, completed its test program in January. S2, the fatigue test plane, will begin testing next year. Initial operational capability is planned for 2013.

A derivative of the Next-Generation 737-800, the Poseidon is built by a Boeing-led industry team that includes CFM International, Northrop Grumman, Raytheon, Spirit AeroSystems, BAE Systems and GE Aviation.

A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world's largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $32 billion business with 63,000 employees worldwide.

Boeing and Navy representatives marked the milestone with a ceremonial "passing of the key" at the Wichita facility before the aircraft departed for its home base at Naval Air Station North Island in San Diego.

"The C-40A combines Boeing Commercial Airplanes' best-selling 737 with Boeing Defense, Space & Security's modification expertise," said Steve Wade, general manager of Boeing Global Transport & Executive Systems. "This aircraft increases the Navy's capability for rapid response worldwide, and we're looking forward to continuing to enhance the fleet with as many aircraft as the Navy requires."

"The global reach and persistent presence of forward-stationed and rotational naval forces is made possible by Navy Unique Fleet Essential Airlift, and the fuel-efficient C-40A delivers this important capability reliably and at a lower cost," said Rear Adm. Bryan Cutchen, Deputy Chief of Navy Reserve. "This new aircraft will help the Navy meet our current challenges today and helps us build a relevant and capable future force."