The world's number one aeroplane manufacturer made sales of $94.6bn, down 2%, and net earnings of $4.9bn, 5% lower.
It said revenues were likely to slip further in 2017, to between $90.5bn and $92.5bn.
But the US company also expects to deliver more commercial aircraft and to improve its earnings per share.
"Looking forward, our team is intent on accelerating productivity and programme execution," said chairman and chief executive Dennis Muilenburg.
In the period, Boeing made 748 commercial aircraft deliveries, down from 762 in 2015, claiming to have led the market for "the fifth consecutive year".
It also delivered fewer military planes - in particular, its new CH-47 Chinook helicopter and its F/A-18 fighter jet - while sales in the division slipped 7%.
Revenue also fell in the firm's space and services divisions because of weaker demand for satellites and aircraft modernisation.
However, overall group earnings surged 59% in the fourth quarter of the year as demand for the company's commercial planes ticked up.
Boeing also projected higher commercial deliveries this year of between 760 and 765 aircraft.
The company's shares were up by more than 2% in early trading in New York.
Sales and profits slipped at Boeing last year, driven largely by lower deliveries of its military aircraft.