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BDS
BDS
Transcript
2023 Q1
3 May 23
BCA.
BCA
Transcript
2023 Q1
3 May 23
Boeing Global Services
BGS
Transcript
2023 Q1
3 May 23
First quarter results were impacted by the added cost on the KC-46A Tanker program, driven by a supplier quality issue that we previously shared last month. The good news is we understand it, and we're progressing through that rework.
On the operational side, the tanker is continuing to perform its mission well. Customers' decision on the KC-Y is a great opportunity for us, and it reflects the capabilities the tanker is delivering for the United States Air Force.
KC-46A tanker-- added cost
Transcript
2023 Q1
3 May 23
Stepping back, we appreciate that Spirit promptly notified us of this issue. They're an important partner. We're working closely on the recovery plan, and we are working in a very constructive way.
Spirit
Transcript
2023 Q1
3 May 23
et's start with an update on our 737.
Our team has been working hard over the last week. We've been progressing in our early inspection of affected airplanes. The issue's understood. It's isolated to two specific fittings, and we know what we have to do.
The work will impact the timing of our deliveries over the next several months.
However, we still expect to deliver 450 737 airplanes this year. Unfortunately, the timing of these delivery shortfalls will impact summer capacities for many of our customers, and we feel terrible about that. Deliveries and production will be lower near term, but we will recover over the coming months, and we plan to increase our rate to 38 per month later this year.
737 issues -- timing of deliveries impactede
Transcript
2023 Q1
3 May 23
Let me start with the latter of the engine discussion. Again, what I'm really happy with is the transparency with which we are planning for rates with our engine suppliers and you know who they are and predominantly one. And I'm feeling good about that. And we have plans to do it. I don't think any of us are yet at the high confidence moment on that, but we will. And that progression will occur over the course of the year when we are at high confidence, then we're going to get to the kind of rates that we -- that are built into our guidance.
We've got a low end and a higher end and we'll find out where we're going to fit on that depending on it.
GE discudssion on engines?
Transcript
2022 Q4
26 Jan 23
And as you guide to 31 a month production in 2023, and our assumption is that if you had engine delivery is higher, you can move up from there, given that you're facilitized and staffed for 38. And if you look out at the 2025 or 2026 timeframe, when you're guiding to 50 a month, you were once at 57 a month.
engine supplier?
Transcript
2022 Q4
26 Jan 23
I will not, in this discussion and or in Q&A, highlight any one supplier within the supply chain
not highlight any supplier
Transcript
2022 Q4
26 Jan 23
Like you mentioned at the Investor Day that Boeing wouldn't be going forward with a middle of the market product probably until sometime in the 2030
mid msarket product
Transcript
2022 Q4
26 Jan 23
ust making sure to understand the difference between production and deliveries this year on 737. When you say the high end of the guidance is assuming low 30s and moving to high 40s you're talking deliveries there.
And then with regard to production, when you say that you are kind of hoping to get to a place where you see some stability this year, that's with regard to production in the factory.
And so that would make it very -- make it seem unlikely that the production rate is going higher than 31% this year. Is that a fair way to think about things regardless of where that delivery shake out?
deliveries vs production?
Transcript
2022 Q4
26 Jan 23
On the segment operating cash flow, same numbers as November, BDS, we expect to be a usage of between $0.5 billion and $1 billion of cash. BGS will generate between $2.5 billion and $3 billion, and BCA will generate between $2.5 million and $3.5 billion.
On the commercial delivery front, 737 deliveries are unchanged and between 400 and 450 airplanes, 787 deliveries are unchanged between 70 and 80 airplanes, and we've added a couple of items on the expense front.
2023 cf guidance by segment
Transcript
2022 Q4
26 Jan 23
But the lion's share of the rate discussions is going to be built around the supply chain and the capacity, literally the capacity and capability of that supply chain to meet the new rates. And as I said, very transparent discussions. It's almost entirely built around labor availability, trained labor ability as we move through the course of the year.
need supply chain to allow ramp, not so much an issue for internal positiining
Transcript
2022 Q4
26 Jan 23
ut Delta earlier, there's just -- there are some big interest in aviation, I'd say, the majority now outside the U.S. as opposed to inside the U.S. And we're considering some big -- some really big things. And we're in the midst of all of those.
So yes, I have a -- I'm pretty optimistic. I'm not going to forecast numbers because that's never healthy. But I do think over the next couple of quarters, you'll see some big decisions made to both manufacturers, and you'll see some new entrants into the aviation world that aim to make a real difference, and again, largely in the global markets.
orders environment good
Transcript
2022 Q4
26 Jan 23
As we move our way into 2023, we clearly expect those margins to get better. It's not going to be all the way back to what normal might look like, but it's going to be improved sequentially. And we feel pretty good about the lineup in terms of the product portfolio. And as we remind you is that the products are performing incredibly well with the customers.
So we feel good about the underlying base is the BDS margins will get better, and we're positioned for that as we head into the year.
defense margins?
Transcript
2022 Q4
26 Jan 23
the 37 at the low end assumes that we don't get much better through the course of 2023 than we did this past year, which is low 30s for the whole year. At the high end, it actually says we do low 30s first half and then low 40s in second half.
737 2023 guidance, what needs to be done
Transcript
2022 Q4
26 Jan 23
Our financial outlook for 2023 is unchanged from what we shared in November. Operating cash flow in total will be between $4.5 billion and $6.5 billion. We'll reinvest about $1.5 billion in CapEx for a net free cash flow of $3 billion to $5 billion in 2023.
2023 outlook
Transcript
2022 Q4
26 Jan 23
the overall plan continues to be deliver airplanes, generate cash, pay down debt
"the plan"
Transcript
2022 Q4
26 Jan 23
cash and debt.
cash and debt
Transcript
2022 Q4
26 Jan 23
Global Services. BGS
BGS
Transcript
2022 Q4
26 Jan 23