Boeing Co. (A+/Stable/A-1) reported net earnings (before nonrecurring items) of $571 million for the fourth quarter ended Dec. 31, 2002, compared with $722 million for the same quarter of 2001, and solid cash flow generation. Standard&Poor's Ratings Services said those results will not affect its ratings or outlook on Boeing or Boeing Capital Corp. (A+/Stable/A-1). Lower profits for the 2002 period reflected a sharp downturn in the commercial aircraft market, weakness in commercial space activities, and lower pension income. Still, good overall performance was supported by strong contributions from the growing defense operations, which enabled Boeing to generate free cash flow of $1.3 billion in the quarter and $3.4 billion for the entire 2002 ($2.7 billion in 2001).
