Boeing Co.'s (A+/Stable/A-1) reported results for the first quarter ended March 31, 2002 (net income, adjusted for nonrecurring items, of $602 million) have no impact on Standard&Poor's rating and outlook on the company. Boeing achieved solid operating performance in almost all of its businesses, increased firm backlog, and reaffirmed its financial guidance for 2002 and 2003 in terms of revenues, operating margins, and free cash flow. The commercial satellite manufacturing business was the only core operation that reported weaker earnings, stemming from cost issues; corrective actions are being taken to improve efficiency and competitive position. Boeing's free cash flow of $174 million for the quarter was down sharply, compared with the prior period and $2.5 billion-$3.0 billion expected
