FINANCIAL STATEMENT

AND

RATIO ANALYSIS

TABLES
 The Boeing Company TABLE T-1

Item
Consolidated Financial Balance Sheet
Description 1999 1998 1997 1996
No. 3rd Qtr
(Dollars in millions except for per share Data) (Unaudited)
1.0 Assets
1.1 Cash and Cash equivalents $ 2,673.00 $ 2,183.00 $ 4,420.00 $ 5,469.00
1.2 Short Term investments $ 100.00 $ 279.00 $ 729.00 $ 883.00
1.3 Accounts Receivable $ 3,200.00 $ 3,288.00 $ 3,121.00 $ 2,870.00
1.4 Current portion of customer and commerical financing $ 595.00 $ 781.00 $ 261.00 $ 774.00
1.5 Deferred income taxes $ 1,423.00 $ 1,495.00 $ 1,765.00 $ 1,362.00
1.6 Inventories, net of advances and progress bilings $ 8,729.00 $ 8,349.00 $ 8,967.00 $ 9,151.00
1.6.1 Total Current assets $ 16,720.00 $ 16,375.00 $ 19,263.00 $ 20,509.00
1.7 Customer and Commercial financing $ 4,970.00 $ 4,930.00 $ 4,339.00 $ 3,114.00
1.8 Property, plant,and equipment, net $ 8,435.00 $ 8,589.00 $ 8,391.00 $ 8,266.00
1.9 Deferred income taxes $ 415.00 $ 411.00 $ 15.00 $ 143.00
1.10 Goodwill $ 2,250.00 $ 2,312.00 $ 2,395.00 $ 2,478.00
1.11 Prepaid pension expense $ 3,559.00 $ 3,513.00 $ 3,271.00 $ 3,014.00
1.12 Other assets $ 845.00 $ 542.00 $ 350.00 $ 356.00

1.13 Total Assets $ 37,194.00 $ 36,672.00 $ 38,024.00 $ 37,880.00

2.0 Liabilities and Equity

2.1 Accounts payable and other liabilities $ 11,552.00 $ 10,733.00 $ 11,548.00 $ 9,901.00
2.2 Advances in excess of related costs $ 1,062.00 $ 1,251.00 $ 1,575.00 $ 1,714.00
2.3 Income taxes payable $ 813.00 $ 569.00 $ 298.00 $ 474.00
2.4 Short-term debt and current portion of long term debt $ 744.00 $ 869.00 $ 731.00 $ 637.00
2.4.1 Total Current liabilities $ 14,171.00 $ 13,422.00 $ 14,152.00 $ 12,726.00
2.5 Accrued retiree health care $ 4,894.00 $ 4,831.00 $ 4,796.00 $ 4,800.00
2.6 Long-term debt $ 5,909.00 $ 6,103.00 $ 6,123.00 $ 6,852.00
2.7 Shareholder's equity:
Common Shares, par value-
1,200,000,000 shares authorized
Shares issued-1,011,870,159 and 1,000,029,538 $ 5,059.00 $ 5,059.00 $ 5,000.00 $ 4,967.00
2.8 Other Equity accounts $ 7,161.00 $ 7,257.00 $ 7,953.00 $ 8,535.00
2.9 Total Shareholder's equity $ 12,220.00 $ 12,316.00 $ 12,953.00 $ 13,502.00

2.10 Total Liabilities & Equity $ 37,194.00 $ 36,672.00 $ 38,024.00 $ 37,880.00

 TABLE T-2
The Boeing Company
Consolidated Income Statement
Item Description 1999 1998 1997 1996
No. 3rd Qtr
(Unaudited)

1 Sales and other operating revenues $ 42,793.00 $ 56,154.00 $ 45,800.00 $ 35,453.00

2 Operating costs and expenses $ 37,980.00 $ 50,546.00 $ 40,644.00 $ 29,383.00
3 General and administrative expense $ 1,509.00 $ 1,993.00 $ 2,187.00 $ 1,819.00
4 Research and Development expense $ 1,026.00 $ 1,895.00 $ 1,924.00 $ 1,633.00
5 Shared-based plans $ 151.00 $ 153.00 $ (99.00) $ 133.00
6 Special charges $ 953.00 $ 1,400.00
7 Earnings (loss) from operations $ 2,200.00 $ 1,567.00 $ (256.00) $ 2,485.00
8 Other income, principally interest $ 501.00 $ 283.00 $ 428.00 $ 388.00
9 Interest and debt expense $ (330.00) $ (453.00) $ (513.00) $ (393.00)
10 Earnings (Loss) before income taxes $ 2,371.00 $ 1,397.00 $ (341.00) $ 2,480.00
11 Income taxes (benefit) $ 724.00 $ 277.00 $ (163.00) $ 662.00
12 Net earnings(loss) $ 1,647.00 $ 1,120.00 $ (178.00) $ 1,818.00
13 Earnings(loss) per share
13.1 Basic $ 1.78 $ 1.16 $ (0.18) $ 1.88
13.2 Diluted $ 1.76 $ 1.15 $ (0.18) $ 1.85
14 Cash dividends per share $ 0.42 $ 0.56 $ 0.56 $ 0.55
 The Boeing Company TABLE T-3

Item
Divisional Summary
Financial Description/ Vs Division 1999 % of 1998 % of 1997 % of
No. 3rd Qtr Business Business Business
(unaudited)
1.0 Total Assets
1.1 Commerical Aircraft Not Available $ 12,568.00 34% $ 12,763.00 34%
1.2 Military Aircraft and Missiles $ 3,560.00 10%
1.3 Space and Communications $ 3,032.00 8%
1.4 Information, Space and Defense Systems $ 6,592.00 18% $ 6,597.00 17%
1.5 Customer and Commerical financing/Other $ 5,751.00 16% $ 4,716.00 12%
1.6 Unallocated $ 11,761.00 32% $ 13,948.00 37%
1.7 Total $ 36,672.00 100% $ 38,024.00 100%

2.0 Liabilities Not Available

2.1 Commerical Aircraft $ 6,127.00 25% $ 6,917.00 28%
2.2 Military Aircraft and Missiles $ 743.00 3%
2.3 Space and Communications $ 1,335.00 5%
2.4 Information, Space and Defense Systems $ 2,078.00 9% $ 2,379.00 9%
2.5 Customer and Commerical financing/Other $ 301.00 1% $ 396.00 2%
2.6 Unallocated $ 15,850.00 65% $ 15,379.00 61%
2.7 Total $ 24,356.00 100% $ 25,071.00 100%

3.0 Sales/Revenues
3.1 Commerical Aircraft $ 28,419.00 66% $ 35,545.00 63% $ 26,929.00 59%
3.2 Military Aircraft and Missiles $ 8,937.00 21% $ 12,990.00 23%
3.3 Space and Communications $ 4,935.00 12% $ 6,889.00 12%
3.4 Information, Space and Defense Systems $ 19,879.00 35% $ 18,125.00 40%
3.5 Customer and Commerical financing/Other $ 603.00 1% $ 730.00 1% $ 746.00 2%
Accounting differences/eliminations $ (101.00) 0%
3.6 Total $ 42,793.00 100% $ 56,154.00 100% $ 45,800.00 100%
4.0 Net Earnings
4.1 Commerical Aircraft $ 1,318.00 80% $ 63.00 6% $ (1,837.00)
4.2 Military Aircraft and Missiles $ 792.00 48% $ 1,283.00 115%
4.3 Space and Communications $ 292.00 18% $ 248.00 22%
4.4 Information, Space and Defense Systems $ 1,531.00 $ 1,317.00
4.5 Customer and Commerical financing/Other $ 330.00 20% $ 367.00 33% $ 381.00
4.6 Accounting differences $ (164.00) -10% $ 43.00 4% $ 71.00
4.7 Share-based plans $ (151.00) -9% $ (153.00) -14% $ 99.00
4.8 Other unallocated costs $ (217.00) -13% $ (284.00) -25% $ (287.00)
4.9 Earnings(loss) from operations $ 2,200.00 $ 1,567.00 $ (256.00)
4.10 Other Income, principally Interest $ 501.00 30% $ 283.00 25% $ 428.00
4.11 Interest and debt expense $ (330.00) -20% $ (453.00) -40% $ (513.00)
4.12 Earnings (loss) before taxes $ 2,371.00 $ 1,397.00 $ (341.00)
4.13 Income tax (benefit) $ 724.00 -44% $ 277.00 -25% $ (163.00)
4.14 Total $ 1,647.00 100% $ 1,120.00 100% $ (178.00)
 The Boeing Company TABLE T-3
Divisional Summary
Item Financial Description/ Vs Division 1999 % of 1998 % of 1997 % of 1996
No. 3rd Qtr Business Business Business
(unaudited)
5.0 Depreciation & Amortization Not Available
5.1 Commerical Aircraft $ 628.00 39% $ 570.00 39% $ 605.00
5.2 Military Aircraft and Missiles $ 208.00 13%
5.3 Space and Communications $ 142.00 9%
5.4 Information, Space and Defense Systems $ 350.00 22% $ 365.00 25% $ 299.00
5.5 Customer and Commerical financing/Other $ 135.00 8% $ 91.00 6% $ 110.00
5.6 Unallocated $ 509.00 31% $ 432.00 30% $ 252.00
5.7 Total $ 1,622.00 100% $ 1,458.00 100% $ 1,266.00

6.0 Research and Development

6.1 Commerical Aircraft $ 496.00 48% $ 1,021.00 54% $ 1,208.00 63% $ 1,156.00
6.2 Military Aircraft and Missiles $ 175.00 17% $ 304.00
6.3 Space and Communications $ 355.00 35% $ 570.00
6.4 Information, Space and Defense Systems $ 874.00 46% $ 716.00 37% $ 477.00
6.5 Total $ 1,026.00 100% $ 1,895.00 100% $ 1,924.00 100% $ 1,633.00

7.0 Net Capital Expeditures Not Available

7.1 Commerical Aircraft $ 754.00 48% $ 531.00 38% $ 336.00
7.2 Military Aircraft and Missiles $ 198.00
7.3 Space and Communications $ 273.00
7.4 Information, Space and Defense Systems $ 471.00 30% $ 463.00 33% $ 304.00
7.5 Customer and Commerical financing/Other $ 1.00 0% $ 1.00 0% $ 1.00
7.6 Unallocated $ 358.00 23% $ 396.00 28% $ 330.00
7.7 Total $ 1,584.00 100% $ 1,391.00 100% $ 971.00

8.0 Contractural Backlog

8.1 Commerical Aircraft $ 75.70 75% $ 86,057.00 76% $ 93,788.00 77% $ 86,151.00
8.2 Military Aircraft and Missiles $ 16.50 16% $ 17,007.00 15%
8.3 Space and Communications $ 8.70 9% $ 9,832.00 9%
8.4 Information, Space and Defense Systems $ 26,839.00 24% $ 27,852.00 23% $ 28,022.00
8.5 Total $ 100.90 100% $ 112,896.00 100% $ 121,640.00 100% $ 114,173.00
 TABLE T-4
The Boeing Company
Consolidated Financial Ratio Analysis
Item Ratio Type Ratio Description 1999 1999 1998 1997 1996
No. Industry 3rd Qtr
Average

1.0 Liquidity Ratios

1.1 Current Ratio Current Assets/Current Liabilities 2.0x 1.18 1.22 1.36 1.61
1.2 Quick Ratio (Current Assets-Inventory)/ 0.8x 0.56 0.60 0.73 0.89
Current Liabilities
2.0 Asset Management Ratios
2.1 Inventory Turnover Sales per Period/Inventories 3.4x 4.90 6.73 5.11 3.87
2.2 Fixed Asset Turnover Sales/Net Fixed Assets 6.9x 4.90 6.54 5.46 4.29
2.3 Total Assets Turnover Sales/Total Assets 1.3x 1.15 1.53 1.20 0.94
2.4 Day Sales Outstanding A/R/(Ave sales per Day/360) 52 days 27 21 25 29
2.5 Operating Captial Requirements Ratio Operating Capital/Sales 22.46% 17.55% 25.06% 38.55%
3.0 Debt Management Ratios
3.1 Debt Ratio Total Debt/Total Assets 61.4%* 67.15% 66.42% 65.93% 64.36%
3.2 Times Interest Earned Ratio EBIT/Interest Expense 4.3x 8.18 4.08 0.34 7.31
4.0 Profitability Ratios
4.1 Profit Margin Net Profit/Sales 3.85% 1.99% -0.74% 5.13%
4.2 Basic Earning Power EBIT/Total Assets 7.26% 5.04% 0.45% 7.58%
4.3 Operation Profit Margin after Taxes (EBIT(1-Tax Rate))/Sales 5.05% 2.64% 0.30% 6.48%
4.5 Return on Assets Net Profit/Total Assets 2.6%* 4.43% 3.05% -0.47% 4.80%
4.6 Return of Equity Net Profit/Common Equity 13.48% 9.09% -1.37% 13.46%
5.0 Market Value Ratios
5.1 Price Earnings Ratio Price per Share/ 37.6 31.0
Earnings per Share
5.2 Book Value per Share Common Equity/ 12.62 12.95 15.18
Shares Outstanding
5.3 Tax Rate 19.80% 34.20% 29.4
5.4 Number of employees 231000 238000 211000
5.5 Beta coeffiecient 1.10
 TABLE T-5
Lockheed Martin
Consolidated Financial Balance Sheet
Item Description 1999 1998 1997 1996
No. 3rd Qtr
(Dollars in millions except for per share Data) (Unaudited)
1.0 Assets
1.1 Current assets $ -
1.1.1 Cash and equivalents $ 285.00
1.1.2 Receivables $ 4,178.00 $ 5,009.00 $ 4,999.00
1.1.3 Inventories $ 4,293.00 $ 3,144.00 $ 2,953.00
1.1.4 Deferred income taxes $ 1,109.00 $ 1,256.00 $ 1,356.00
1.1.5 Other current assets $ 746.00 $ 696.00 $ 1,038.00
1.1.6 Total Current assets $ 10,611.00 $ 10,105.00 $ 10,346.00
1.2 Property, plant and equipment $ 3,513.00 $ 3,669.00 $ 3,721.00
1.3 Intangible asets related to contracts and programs acquired $ 1,418.00 $ 1,566.00 $ 1,767.00
1.4 Cost in excess of net assets acquired $ 9,521.00 $ 9,856.00 $ 10,394.00
1.5 Other assets $ 3,681.00 $ 3,165.00 $ 3,312.00

Total Assets $ - $ 28,744.00 $ 28,361.00 $ 29,540.00

2.0 Liabilities and Equity

2.1 Current Liabilities:

2.1.1 Accounts payable $ 1,382.00 $ 1,234.00 $ 1,294.00
2.1.2 Customer advances and amounts in excess of costs incurred $ 4,012.00 $ 3,644.00 $ 2,600.00
2.1.3 Salaries, benefits, and payroll taxes $ 842.00 $ 924.00 $ 991.00
2.1.4 Income taxes $ 553.00 $ 364.00 $ 925.00
2.1.5 Short term borrowings $ 1,043.00 $ 494.00 $ 1,100.00
2.1.6 Current maturities of long term debt $ 886.00 $ 876.00 $ 180.00
2.1.7 Other current liabilities $ 1,549.00 $ 1,653.00 $ 1,582.00
2.1.8 Total current liabilities $ 10,267.00 $ 9,189.00 $ 8,672.00
2.2 Long term debt $ 8,957.00 $ 10,528.00 $ 10,188.00
2.3 Post-retirement benefit liabilities $ 1,903.00 $ 1,993.00 $ 2,077.00
2.4 Other liabilities $ 1,480.00 $ 1,475.00 $ 1,747.00
2.5 Stockholders' equity
2.5.1 Series A Preferred Stock $ 1,000.00
2.5.2 Common stock,$1 par value $ 393.00 $ 194.00 $ 193.00
2.5.3 Additional paid in capital $ 70.00 $ 25.00 $ 92.00
2.5.4 Retained earnings $ 5,856.00 $ 5,173.00 $ 5,823.00
2.5.5 Unearned ESOP shares $ (182.00) $ (216.00) $ (252.00)
Total Stockholders' equity $ 6,137.00 $ 5,176.00 $ 6,856.00
2.6 Total Liabilities & Equity $ - $ 28,744.00 $ 28,361.00 $ 29,540.00
 TABLE T-6
Lockheed Martin
Consolidated Income Statement
Item Description 1999 1998 1997 1996
No. 3rd Qtr
(Dollars in millions except for per share data) (Unaudited)

1 Net Sales $ 26,266.00 $ 28,069.00 $ 26,875.00

2 Cost of sales $ 23,914.00 $ 25,772.00 $ 24,594.00
3 Earnings from operations $ 2,352.00 $ 2,297.00 $ 2,281.00
4 Other income and expenses, net $ 170.00 $ 482.00 $ 452.00
5 Earnings before Interest & taxes $ 1,308.00 $ 2,522.00 $ 2,779.00 $ 2,733.00
6 Interest expense $ (583.00) $ (861.00) $ (842.00) $ (700.00)
7 Earnings before income taxes $ 725.00 $ 1,661.00 $ 1,937.00 $ 2,033.00
8 Income tax expense $ (281.00) $ (660.00) $ (637.00) $ (686.00)
9 Net Earnings (1996-1998) $ 444.00 $ 1,001.00 $ 1,300.00 $ 1,347.00
Change in acounting $ (355.00)
Net Earnings $ 89.00
10 Earnings (loss per common share)
10.1 Basic $ 0.23 $ 2.66 $ (1.56) $ 3.40
10.2 Diluted $ 0.23 $ 2.63 $ (1.56) $ 3.04
 Lockheed Martin TABLE T-7

Divisional Summary
Financial Description/ 1998 % of 1997 % of 1996 % of
Vs Division Business Business Business
(Dollars in millions)
Total Assets
Space & Strategic Missiles $ 5,228.00 $ 4,599.00 $ 3,758.00
Electronics $ 10,355.00 $ 10,619.00 $ 11,363.00
Aeronautics $ 3,890.00 $ 3,757.00 % $ 4,201.00
Information & Services $ 4,726.00 % $ 5,150.00 $ 6,111.00
Energy and Other $ 4,545.00 $ 4,236.00 $ 4,107.00
Total $ 28,744.00 $ 28,361.00 $ 29,540.00

Sales/Revenues
Space & Strategic Missiles $ 7,461.00 $ 8,303.00 $ 7,904.00
Electronics $ 7,342.00 $ 7,069.00 $ 6,675.00
Aeronautics $ 5,996.00 $ 6,045.00 $ 5,596.00
Information & Services $ 5,212.00 $ 6,468.00 $ 5,893.00
Energy and Other $ 255.00 $ 184.00 $ 807.00
Total $ 26,266.00 $ 28,069.00 $ 26,875.00

Net Earnings
Space & Strategic Missiles $ 976.00 $ 1,096.00 $ 973.00
Electronics $ 733.00 $ 576.00 $ 673.00
Aeronautics $ 654.00 $ 612.00 $ 441.00
Information & Services $ (25.00) $ 111.00 $ 290.00
Energy and Other $ 184.00 $ 384.00 $ 356.00
Total $ 2,522.00 $ 2,779.00 $ 2,733.00

Net Capital Expeditures

Space & Strategic Missiles $ 271.00 % $ 293.00 $ 264.00
Electronics $ 185.00 $ 189.00 $ 213.00
Aeronautics $ 119.00 $ 104.00 $ 75.00
Information & Services $ 78.00 $ 137.00 $ 104.00
Energy and Other $ 44.00 $ 27.00 $ 81.00
Total $ 697.00 $ 750.00 $ 737.00
 TABLE T-8
Lockheed Martin
Consolidated Financial Ratio Analysis
Item Ratio Type Ratio Description 1999 1999 1998 1997 1996
No. Industry 3rd Qtr
Average

1.0 Liquidity Ratios

1.1 Current Ratio Current Assets/Current Liabilities 2.0x 1.03 1.10 1.19
1.2 Quick Ratio (Current Assets-Inventory)/ 0.8x 0.62 0.76 0.85
Current Liabilities
2.0 Asset Management Ratios
2.1 Inventory Turnover Sales per Period/Inventories 3.4x 6.12 8.93 9.10
2.2 Fixed Asset Turnover Sales/Net Fixed Assets 6.9x 7.48 7.65 7.22
2.3 Total Assets Turnover Sales/Total Assets 1.3x 0.91 0.99 0.91
2.4 Day Sales Outstanding A/R/(Ave sales per Day/360) 52 days 57 64 67
2.5 Operating Captial Requirements Ratio Operating Capital/Sales 20.86% 20.15% 21.82%
3.0 Debt Management Ratios
3.1 Debt Ratio Total Debt/Total Assets 61.4%* 66.88% 69.52% 63.85%
3.2 Times Interest Earned Ratio EBIT/Interest Expense 4.3x 3.82 4.36 3.98
4.0 Profitability Ratios
4.1 Profit Margin Net Profit/Sales 3.81% 4.63% 5.01%
4.2 Basic Earning Power EBIT/Total Assets 8.77% 9.80% 9.25%
4.3 Operation Profit Margin after Taxes (EBIT(1-Tax Rate))/Sales 5.86% 6.04% 6.20%
4.5 Return on Assets Net Profit/Total Assets 2.6%* 3.48% 4.58% 4.56%
4.6 Return of Equity Net Profit/Common Equity 6.60% 16.31% 25.12% 19.65%
5.0 Market Value Ratios
5.1 Price Earnings Ratio Price per Share/ 17.0 15.7 15.5
Earnings per Share
5.2 Book Value per Share Common Equity/ 15.60 13.31 15.19
Shares Outstanding
5.3 Tax Rate 37.50% 32.90% 39.50%

5.4 Number of employees 165,000 173,000 190,000

5.5 Beta Coefficient 0.80

Financial Comparisons

Figures
 FIGURE F-1

The Boeing Company

Divisional Total Assets Trend Analysis

40 Commercial Aircraft
35
Military Aircraft &
30 Missiles
25 Space and
Dollars
20 Communications
(in Millions)
15 Information, Space and
10 Defense Systems
5 Customer &
Commercial Financing
0 Unallocated
1996 1997 1998

Note: Information, Space and Defense was divided into (1) Military Aircraft and Missiles and (2)
Space and Communications divisions in 1998
 FIGURE F-2

The Boeing Company

Divisional Sales/Revenue Trend Analysis

70.0
60.0 Commerical Aircraft
50.0
Military Aircraft and
Dollars 40.0 Missiles
(in Millions) 30.0
Space and
20.0 Communications
10.0 Information, Space &
Defense
0.0
1996 1997 1998 1999 Customer & commercial
3rd Financing
Qtr

Note: Information, Space and Defense was divided into (1) Military Aircraft and Missiles and (2)
Space and Communications divisions in 1998
 The Boeing Company FIGURE F-3

Net Earnings
Divisional Trend Analysis

120 Commercial Aircraft

100
80
60 Military Aircraft &
40 Missiles
Dollars
20 Space and
(in Millions) 0 Communications
-20 Information, Space and
-40 Defense Systems
-60 Customer &
-80
1996 1997 1998 1999 Commercial Financing
3rd Unallocated
Qtr
 The Boeing Company FIGURE F-4

Net Capital Expenditures

Divisional Trend Analysis

50 Commercial Aircraft
45
40 Military Aircraft and
35 Missiles
Space and
Dollars 30
25 Communications
(in Millions) 20
Information, Space &
15 Defense
10 Customer and
5 Commercial Financing
0 Unallocated
1996 1997 1998
 The Boeing Company FIGURE F-5

Divisional Total Liabilities Trend Analysis

70 Commerical Aircraft
60 Military Aircraft and
50 Missiles
Space and
Dollars 40
Communications
(in Millions) 30
Information, Space &
20 Defense
10 Customer and
Commercial Financing
0 Unallocated
1996 1997 1998

Note: Information, Space and Defense was divided into (1) Military Aircraft and Missiles and (2)
Space and Communications divsions in 1998
 The Boeing Company FIGURE F-6

Research and Development

Divisional Trend Analysis

80
70
60 Commercial Aircraft
50
Dollars 40 Military Aircraft and
(in Millions) 30 Missiles
Space and
20 Communications
10 Information, Space &
0 Defense
1996 1997 1998 1999
3rd
Qtr

Note: Information, Space and Defense was divided into (1) Military Aircraft and Missiles and (2)
Space and Communications divisions in 1998
 FIGURE F-7

The Boeing Company

Liquidity Ratio Trend Analysis
2.5
Current Ratio
2
Quick Ratio
1.5

1 Industry Average-
Current
0.5 Industry Average-
Quick
0
1996 1997 1998 1999 3rd
qtr
 FIGURE F-8
The Boeing Company
Asset Management Ratio Trend Analysis
8
Inventory Turnover
7
6 Total Assets
5 Turnover
4 Fixed Asset Turnover
3
Industry Average-
2 Inventory
1 Industry Average-
0 Total
1996 1997 1998 1999 3rd Industry Average-
Fixed
Qtr
 FIGURE F-9

Lockheed Martin
Divisional Total Assets Trend Analysis

12000

10000 Space & Missiles

8000 Electronics

6000 Aeronautics

4000 Information &

Services
2000 Energy and Other
0
1996 1997 1998

Electronics division is the major Total Assets contributor

 FIGURE F-10
Lockheed Martin
Divisional Sales Trend Analysis
9000
8000 Space & Missiles
7000
6000 Electronics
5000
Aeronautics
4000
3000 Information &
2000 Services
1000 Energy and Other
0
1996 1997 1998

• Space & Missiles and Electronics Divisions equally contributing to Sales

 Lockheed Martin FIGURE F-11

Net Earnings
Divisional Trend Analysis
1200

1000 Space & Missiles

800
Electronics
600
Aeronautics
400
Information &
200 Services
0 Energy and Other

-200
1996 1997 1998

• Space & Missiles leading contributor to Net Earnings

 FIGURE F-12
Lockheed Martin
Net Capital Expenditures
Divisional Trend Analysis

300

250 Space & Missiles

200 Electronics

150 Aeronautics

100 Information &

Services
50 Energy and Other
0
1996 1997 1998

• Space & Missiles is leading contributor to Net Capital Expenditures

 FIGURE F-13
Lockheed Martin
Liquidity Ratio Trend Analysis

2.5

2 Current Ratio

1.5 Quick Ratio

Current Ratio
1
Industry Ave.
Quick Ratio Industry
0.5 Ave.

0
1996 1997 1998
 FIGURE F-14
Lockheed Martin
Asset Management Ratio Trend Analysis

10
9
8 Inventory Turnover
7 Ratio
Inventory Turnover
6 Industry Ave.
5 Fixed Asset Turnover
4 Ratio
3 Fixed Asset Turnover
Industry Ave.
2 Total Assets Turnover
1 Ratio
0 Total Assets Turnover
1996 1997 1998 Industry Ave.
 Consolidated Total Assets FIGURE F-15

Financial Comparison
The Boeing Company Lockheed Martin

40000
35000
30000
25000
Dollars
20000
(in Millions)
15000
10000
5000
0
1996 1997 1998
•Boeing’s total Assets are 1.30 times greater than LM
•Boeing’s assets are decreasing while LM are remaining roughly the same
 FIGURE F-16
Consolidated Sales
Financial Comparison
The Boeing Company Lockheed Martin

60000
50000
Dollars 40000
(in 30000
Millions) 20000
10000
0
1996 1997 1998
•Boeing sales are increasing while LM remain basically flat
•Boeing sales are 1.69x greater than LM over the last three years
•Commercial aircraft division account for 63% of Total Sales
 FIGURE F-17
Consolidated Net Earnings
Financial Comparison

The Boeing Company Lockheed Martin

2000
1800
1600
1400
1200
Dollars 1000
(in Millions) 800
600
400
200
0
-200
1996 1997 1998
•LM operations more efficient than Boeing over this three year period
•Earnings are comparable to Boeing and yet Boeing has much more sales
•LM earnings are decreasing
 Consolidated Earnings From Operations FIGURE F-18
Financial Comparison
The Boeing Company Lockheed Martin

2500
2000
1500
Dollars
1000
(in Millions)
500
0
-500
1996 1997 1998
•LM cost of operations much lower than Boeings respect to Sales
•LM earnings remain consistent with flat sales receipts
•Boeing needs much improvement in its cost of operations
 Consolidated Earnings per Share FIGURE F-19

Financial Comparison
The Boeing Company Lockheed Martin

3.5
3
2.5
2
1.5
Dollars 1
(per Share) 0.5
0
-0.5
-1
-1.5
-2
1996 1997 1998

•LM has generally higher earnings per share than Boeing

•More efficient cost of operations
•Effectively utilizing assets and inventories
•Boeing has much room for improvement
 FIGURE F-20
Consolidate Return on Assets(ROA)
Profitability Financial Comparison
The Boeing Company Lockheed Martin

1998

1997

1996

0 1 2 3 % 4 5 6 7

• Shows that LM much more efficient at operations than Boeing

 FIGURE F-21
Consolidated Return on Equity (ROE)
Profitability Financial Comparison
The Boeing Company Lockheed Martin

1998

1997

1996

-5 0 5 10 % 15 20 25 30

• Shows that LM much more efficient at operations than Boeing

 FIGURE F-22
Consolidated Profit Margin
Profitability Financial Comparison
The Boeing Company Lockheed Martin

1998

1997

1996

-2 -1 0 1 2
% 3 4 5 6

• LM Profit Margins are decreasing even though Sales have remained the same
• Shows LM has a more efficient operations than Boeing
 Consolidated Inventories FIGURE F-23

Financial Comparison

The Boeing Company Lockheed Martin

10000

8000

Dollars 6000
(in Millions) 4000

2000

0
1996 1997 1998

•LM inventories are increasing while Boeing’s inventory is decreasing

•LM inventory to Total Assets ratio is 50% less than Boeing’s
•Shows that LM operations are more efficient than Boeing’s
 Consolidated Current Ratio FIGURE F-24

Liquidity Financial Comparison

The Boeing Company Lockheed Martin Industry Average

1998

1997

1996

0 0.5 1 1.5 2 2.5

•Ability to meet short term obligations
•Ratio is much lower than industry average
•Shows the 1998 Liquidity position relatively weak
•Must liquidate current assets at 97% (1/1.03) for LM and at 61%
(1/1.22) for Boeing of book value and still payoff creditors in full
 FIGURE F-25
Consolidated Quick Ratio
Liquidity Financial Comparison
The Boeing Company Lockheed Martin Industry Average

1998

1997

1996

0 0.2 0.4 0.6 0.8 1

•Ratio is decreasing compared to the industry average

•Both companies would have to liquidate its inventory in order to payoff its
current liabilities
•Inventories are the least liquid of current assets
 Consolidated Inventory Turnover Ratio FIGURE F-26
Asset Management Ratio Financial Comparison
The Boeing Company Lockheed Martin Industry Average

1998

1997

1996

0 2 4 6 8 10
•Inventory sold out and restocked higher than the industry average
•LM ratio is higher than Boeing
•Shows possibly superior merchandising and/or a shortage of needed
inventory to support sales for both companies
 FIGURE F-27
Consolidated Fixed Asset Ratio
Asset Management Ratio Financial Comparison
The Boeing Company Lockheed Martin Industry Average

1998

1997

1996

0 2 4 6 8 10
•Shows that LM is effectively using its plant and equipment compared to the
industry average and to Boeing
•Boeing requires improvement to better utilize its plant and equipment
 FIGURE F-28
Consolidated Total Asset Ratio
Asset Management Ratio Financial Comparison
The Boeing Company Lockheed Martin Industry Average

1998

1997

1996

0 0.5 1 1.5 2

•Evaluates Total Asset usage

•LM is generating less sales than total asset investment
•Boeing is generating more sales than total asset investment
 Consolidated Day Sales Outstanding RatioFIGURE F-29
Asset Management Ratio Financial Comparison
The Boeing Company Lockheed Martin Industry Average

1998

1997

1996

0 10 20 30 40 50 60 70 80
Days

•Represents the average length of time after making a sale before receiving
a cash payment
•Boeing is approximately 2.5 times better than industry average
•LM is exceeding the industry average on collecting payments
 Consolidated Debt Ratio FIGURE F-30

Debt Management Ratio Financial Comparison

The Boeing Company Lockheed Martin Industry Average

1998

1997

1996

56 58 60 62 64 66 68 70 72
%
• Shows how the company is financed
•Both companies debt ratios are higher than the industry average
•Creditors have supplied approximately 67% of the total financing
•May make it costly to borrow additional funds without raising more equity
capital
 Consolidated Times Interest Earned RatioFIGURE F-31
Debt Management Ratio Financial Comparison
The Boeing Company Lockheed Martin Industry Average

1998

1997

1996

0 1 2 3 4 5 6 7 8

• Shows the ability to pay interest

•Both companies have sufficient funds to meet annual interest costs even if
operating incomes declines
 Divisional Sales FIGURE F-32

Military Aircraft & Space

Financial Comparison
The Boeing Company Lockheed Martin

20,000

15,000

Dollars
10,000
(in Millions)

5,000

0
1996 1997 1998

•Boeing and LM Military Aircraft and Space Divisions Sales are nearly equal
•Note Boeing overall Sales exceed LM by 1.6 times
•Boeing’s Sales are increasing while LM’s are remaining flat
 Divisional Net EBIT FIGURE F-33

Military Aircraft & Space

Financial Comparison
The Boeing Company Lockheed Martin

1800
1600
1400
1200
1000
800
600
400
200
0
1996 1997 1998

•Military Aircraft & Space did not contribute to the overall 1997 Earnings
per share loss
 Divisional Total Assets FIGURE F-34

Military Aircraft & Space

Financial Comparison
The Boeing Company Lockheed Martin

10000
9000
8000
7000
Dollars 6000
5000
(in Millions) 4000
3000
2000
1000
0
1996 1997 1998
 Divisional Net Capital Expenditures FIGURE F-35

Military Aircraft & Space

Financial Comparison
The Boeing Company Lockheed Martin

500
450
400
350
Dollars 300
250
(in Millions) 200
150
100
50
0
1996 1997 1998