114 annotations
Page 3 of 6
With that, I'll turn to the next page and cover Boeing Commercial Airplanes. BCA booked 398 net orders in the quarter, including 150 MAX-10s for Ryanair, 50 87s for United and 39 87s for Saudi Arabian Airlines. BCA now has over 5,100 airplanes in the backlog valued at $392 billion.
bca backlog
Transcript
2023 Q3
31 Oct 23
Boeing Global Services
bgs
Transcript
2023 Q3
31 Oct 23
Recovery in BDS is slower than we'd like, slower than I'd like, but we're confident in the future and our path to normalizing BDS margin performance by that '25 and '26 time frame is intact. The confidence is due in part to key milestones we're starting to hit and the strong demand we're seeing.
For example, we delivered the first T-7A to the U.S. Air Force this quarter.
We also captured a key award from the U.S. Army for 21 Apache helicopters.
bds slow
Transcript
2023 Q3
31 Oct 23
igher estimated costs on the VC-25B program.
higher costs on vc-25b
Transcript
2023 Q3
31 Oct 23
Boeing Defense Systems, BDS. In Defense and Space
BDS
Transcript
2023 Q3
31 Oct 23
with respect to our supply chain, delivery shortfalls have been driven by nonconformances, not actual supply chain constraints.
not supply chain issue -- manufcturing quality
Transcript
2023 Q3
31 Oct 23
We plan to complete the production transition to 38 per month by the end of the year and still plan to reach the key rate of 50 per month by that '25 and '26 time frame.
transition to 38 a month
Transcript
2023 Q3
31 Oct 23
On the 737, we're moving through rework on the most recent nonconformance in the aft pressure bulkhead. That work slowed production and deliveries down in the course of the quarter. And given our year-to-date total, we now expect 737 deliveries for the year to be in the 375 to 400 range.
375-400 (from 400-450) deliveies on 737 in 2023
Transcript
2023 Q3
31 Oct 23
We booked about 400 net orders in the quarter, including 150 737 MAX 10s for Ryanair, 50 787s for United Airlines and 39 787s for Saudi Arabian Airlines.
400 net orders in the Q
Transcript
2023 Q3
31 Oct 23
As you know, free cash flow has been our primary financial metric through this recovery. And based on our performance year-to-date, we still plan to be in the guidance range for the year as well as the $10 billion target by 2025 and 2026
FCF on track, but the 2023 guide was very wide
Transcript
2023 Q3
31 Oct 23
On the third quarter specifically, we expect BCA margins to improve sequentially but remain negative, and we’re not anticipating much in terms of BDS profitability
Q3 guidance
Transcript
2023 Q2
11 Sep 23
he 37 had 11
113 deliveries (737)
Transcript
2023 Q1
11 Sep 23
103 737s
103 737s
Transcript
2023 Q2
11 Sep 23
Just wanted to get your thoughts on what A220 stretch 500 may or may not mean. It seems like Airbus is going to do it, at least that’s the signals they are sending and just how you guys think about it?
Dave Calhoun
Honestly, I probably been curt and maybe too curt with my answer is, but I really don’t think about it. I don’t view it as a meaningful competitor. There is nothing that I would want to do on the product development front to respond to it. It’s not the world that we’re interested in. We like our portfolio. The next airplane, in my view, with respect to development has to be a meaningful change, 25%, 30% better than what flies today. That’s why we are focused on Transonic wings. That’s just our game plan.
airbus a220-500 competition?
Transcript
2023 Q2
3 Aug 23
Second half of ‘24 is a very important moment in time because I believe that’s the step change for BCA in pretty much every way. And if we get through that well and we execute well, then we will be talking to all of you about 60. But I don’t want to get ahead of myself on this one and either as a team.
H2 2024 is the big step chsange foor 737 ramp
Transcript
2023 Q2
3 Aug 23
BCA forecast, the 2.5 to 3.5 operating cash flow this year, you have got an up arrow there.
So, what is surprising to the upside? I mean you are still running through big unit losses. Is it just upside from working capital, advances coming in sooner than expected or better than expected? Is that the upside in terms of what that up arrow signifies?
Brian West
The orders and the advances, that’s just better than we have thought.
orders and advanced better than exprected for bca
Transcript
2023 Q2
3 Aug 23
The way we think about the fixed price development programs that we’ve talked about, 15%, we just have to stabilize those and execute and know that every quarter, we’re getting closer to having those products over and delivering behind us. The next piece of the 60%, very stable, there is a lot of very nice products in there, and we have to keep them stable. And with lean efforts and other things, we actually could get a little bit of productivity out of those programs to get better and better and better. But that’s – keep that 60% stable and keep it moving. And it’s the 25% that’s left over, that’s the part of the portfolio, it’s a handful of programs, and they are not where they need to be. They are negative. They need to swing positive, and there is a plan to go do that, but it’s just going to take us a little bit of time.
In terms of what this portfolio looks like in the ‘25-26 timeframe, we believe the 15% will be stable, right? We will be at certain milestones, where a lot of the stuff will be in the rearview mirror. And the 85% that’s left over is going to be performing at very attractive margins because we’ve done the hard work of stabilizing and then trying to bring in more productivity programs, including lean manufacturing, so that these businesses can get even healthier and stronger.
defense road map
Transcript
2023 Q2
3 Aug 23
hat’s a big important move, and there’ll be subsequent rate breaks beyond that. And all of that is going to play into a margin trajectory that’s going to start to look a lot more normal. And by the time we get through 2024, and we’re focused on that ‘25-26 timeframe, as we’ve said, BCA margins will look a lot like that before in that low double-digit area.
wgen 737 will be profitabolity
Transcript
2023 Q2
3 Aug 23
These adjustments will continue to weigh on the tax rate for the remainder of the year. And given the strong results in 2Q cash flow, 3Q will be lower sequentially, still positive and likely in the hundreds of millions of dollars.
q3 cf lower (see advanced paymrent issue above)
Transcript
2023 Q2
3 Aug 23
The operating cash makeup by division will likely be different with BCA and BGS better than expected and BDS lower than expected due to the lower operating performance. Net-net, we still have confidence in the $3 billion to $5 billion of free cash flow for the year.
fcf of 3-5 will be generated differemtly to original guidance --- bca and bgs better, bds worse
Transcript
2023 Q2
3 Aug 23