Great. everybody. morning, Thanks, Dave, and good
respect us have I and navigate completely to know, helping for tell Dave And Dave aligned of XXX% are long forward. of knowing I've lot we're in had path you, and the many and priorities forward our the And pleasure our you challenging I distinct As partnership. the company. to have the a through of times on the extremely these can path chair, forward look lucky him for we time. a continued for
X, overall our Let's to we'll and business discuss now Slide move environment.
years. fundamentals are in We and by the opportunity that sectors market backed continue over XX growing of to combined operating trillion sizable be a strong next $X.X with
healthy in see to global and Services. demand continue offerings for Defense, We our Space Commercial,
we see continue some starting However, in cargo pressure, to such we to monitor forward. the will as are that market, going
seen In this solid Commercial November. remain a in saw Aviation, intact. we traffic of passenger year, growth we've The some although fundamentals X.X% moderation through
the However, item of is the clearly a coronavirus near-term this impact traffic watch on year. growth
challenging contracted air and side, industrial be have trade On production rebound cargo volumes to due traffic the cargo in air market global to the and trade will XXXX. environment, key improvements in
steady of see orders carriers on. to support is eye definitely keeping are but freighters close continue utilization to will needs, placing replacement incremental something their while we're this global a fleet We
longer-term In the with affords the MAX the to time breadth implications. us presented the depth the challenges, grounding and and backlog of us assess our has mitigate narrowbody although segment, near-term
approximately growth of and XXX capacity replacement continue aircraft, backlog Our efficient older, has for see program to less required airplanes and a provide for creating new X,XXX these aircraft. we
Clearly, market and share our impacted has to by be continue delivery MAX. been the will narrowbody
on dynamics value impact we MAX XXX of the the Although we've direct this continue creates. not the in will marketplace, market a proposition monitor the seen to
down The facing Boeing time from order affords and of efficiency some term. in slot competitor these ample limited double availability operating on improving us aircraft in challenges to the program mitigate the production our both to is of near
and and back reprioritizing will future. product as investments. determine market are analysis will and the the be some forward. production we in our regards to on development system the part move asked of to of needed have team done design airplanes the the noted, we aircraft, build work what of family we Dave With as our NMA reassess team streamline as commercial of strategy to The We've the step middle
we saw XXXX for and in widebody order segment, families. the activity XXX In the XXX solid
term, the widebody has However, as we mentioned production our near before, the in environment in presented for trade the plans, particular, XXX global challenges program.
rate process, required. if our of the part we're As to assessing continually environment any determine adjustments are further
month per will XX late to the we from 'XX. rate that production announced previously We XXX transition per XX month in
to XXXX window further in in 'XX the month decision and reduce As to skyline, decided planning month before we're risk XX per rate reduce the 'XX in rate to returning the of we've a per early to and in XX XXXX.
customer with the we and a backlog it's the relationship. continue deal U.S. be to to will XXX we're Progress future prudent recent Phase that a and implementation closely times. of production of approach Boeing awaiting into more We're our between access given meantime, pleased the and proud very details X with the will continue part is lead on of our rates. and and trade announcement skyline deal valued think work encouraging, our we to how the take to measured production this this will airplanes our of In fit to obviously China,
risks going forward, into opportunities. account of will maintain process host this taking We to a management rate and disciplined continue
also appropriate in adjustments and future. will to demand continue the as assess make the We environment
cabin Turning which months safety The flight is and on to at will We're air last the and in ground successfully over and the testing expecting to tests the in the a We continue the -- and months XXX-X environmental program delivery last fleet, XXXX. be This to controls, year, coming reliability. test first aerodynamic evaluate others. Everett test ground to first XXXX completed series of many over of flight its the currently controls, conditions XXXX. demonstrate began among comprehensive performance rigorous week.
to XXXX the be XXXX. month delivery XXXX X the XXX, be rate for driver We XXX will per in primary the continue to program. on future rate Progress combined the of expect delivery approximately
corporation We will the service. of the the XXXX by minimize measured ramp, work rate prior number into take to a we entry in managing look produced aircraft of will approach to and change amount to
the as XXX, our cargo monitor and we discussed I carefully continually earlier, the skyline. closely manage On market will
transition in process starting month. are Finally, X of as we we XXX to previously per the rate X.X announced, production to the from
Security, global we At programs. Defense, major & for see and platforms Space demand solid continue to
In provide of including products, for addition, range support the the of budget FY enacted 'XX broad a F-XXEX. procurement
Our innovative, and portfolio needs future. and remains affordable build to new franchises platforms proven the with world-class capable current to positioned well address
existing MQ-XX, our focus Air Commercial the Hawk especially platforms, maintaining a working KC-XX Red are our Space such Grey future ensure on our on space We and programs T-XA sharp performance and Systems. franchise U.S. program Wolf, Force MH-XXXA while Crew the the to including as Launch strong and programs,
a marked Crew for month Commercial an flight significant or test Last -- with program CST-XXX milestone Starliner. orbital the uncrewed of the CTE
space XXXX NASA. test the uncrewed is However, venting anomalies mission, reviewing as in process reported, is astronauts was approval due with on docking to the mission data the Station. Space of contract this company's December test a with station, experienced and board. the from proceed flight became the during required to our mission, NASA's And with docking the to part including the International NASA abbreviated for of the with
are we this another in reflected you'll BDS impact crew financial provisioned obligation, see for and results. Given this uncrewed mission,
Services trillion the XX services our over $X.X next sector. company. a The for is years significant to the opportunity market Turning
by and the see who chain service our to impact continue digital our of BGS has timing pushing The the service impacted have on grounding. global with We supply our growth growth from been MAX some customers expanded of in offerings back grounding by airline XXXX demand solutions. had portfolio
We this to resolved over expect be time. much of
the healthy chain stability. supply production to the system backdrop Given demand, of critical is ecosystem sustain
we production extremely health navigate especially and Some assess grounding readiness critical and challenges suppliers be past. production forward. production current And rate the rate rate therefore, outlook. the we of changes are rates engaged will as Suppliers' as going had and we in the with have MAX
for Slide year Let's to now our turn full results. X
continue impacted Our were operating reduced. to by grounding. financial and MAX earnings results the be materially XXX Revenue, cash share per
negative cash XXX MAX share was for primarily by impacts. operating Our earnings revenue partially MAX and again, per a to billion, $X.X higher service XXX of $XX.X the negative volume. billion the the reflects year, Core offset full due was impacts, $X.XX
on our now to Let's Slide move X. results quarterly
and of negative During $XX.X $X.X operating operating the core recorded cash. quarter, per billion of $X.XX we earnings revenue -- negative share core billion, of
financials we Before segment performance, over MAX go detail. more XXX in let me discuss
In made is quarter of we financial reiterate, Turning regulators let now X. delivery, statements, timing and and certain Again, will production the timing to the preparation FAA rate of conditions it Slide determine assumptions, return service. profiles. ramp-up our resumption fourth to me including and global the for who of the
begin require will combination and will deliveries undergo approval assumed We've regulatory to MAX the simulator XXX also to pilots regulators service, that mid-XXXX. assumed that of computer to XXX enable a We've for as of condition MAX in training. return the
we will planned rates timing few low are at in of conditions previously XXXX that the assumed gradually expect And MAX understood. over to better then increase We've next service production rates aircraft and production to XXX we resume as return years.
that delivered during stored assumptions assuming them financial after these to will also the We're additional us Any of produced majority the impacts. of to year resumption and over during delivered quarters, first with XXX require MAX the several deliveries. the airplanes grounding will recognize changes be
quarter, return Adding costs and $X.X brings additional accounting units billion block additional current aircraft to program in in these the primarily reflect the XXX of reflect rates the regarding cumulative fourth be costs added service total to the production undelivered of the timing aircraft of the complete reduce therefore, This margin. accounting $X.X to to X,XXX the spread time billion. approximately is and produce we planned will XXX and, program quantity. program to the These across the program and In costs impact required program. of to timing assumptions undelivered the
XXX maintain during labor XXX the This GAAP. production includes as MAX be production costs costs of recorded suspension our decision infrastructure, including and related production some the production. abnormal must the suspension U.S. to In rate low to means costs addition, under the that
sustain chain made may and system the you recall, months. supply efforts health gains As the is decision this quality our of over several part production the to and in last
X these expect be these will through We primarily costs expensed to the abnormal rates Since see incurred, period These rate low, production will to costs the you'll starting these deemed XXXX, quarter. flow loaded. the be portion be first in the currently when is are earnings front-end we abnormal expense approximately be as estimate the expense largest in billion. of $X costs and as and
of to MAX included During as the in estimate XXX of and as disruptions based XXX our estimates on delays. reassessed information latest customers quarter, the insurance. billion delivery recent we recorded assessment, considerations grounding associated with This $X.X customers. billion related liability impacts our we for the brings also assumptions $X.X to other the concessions reflect potential to updating and net to reassessment engagement well added quarter. This on to cumulative Based total our the most
we've As individually customer by the addressing mentioned, we're customer. impact
to years, the cash will conversations cash be In concessions number loaded be the individual expect customers. years we in-kind We but, and but few in be see balance a first XXXX, over impact upon other of $X.X any the liability course, through revised we dependent reduced to considerations other to also billion payments with continue considerations. or front-end of more by
suspension rate accept and and and impact the customers to profile; the the considerations. our returns the potential and can deliver service the XXX Looking be related key conditions; return fast how ramp be concessions production we drivers ramp-up, to service the discussions aircraft; XXX line fast other with which will delivery dependent will and customers of time to forward, and the once on duration how the continue aircraft financial can of to regarding fleet
the to to our rates. service, return up to be financial continue customers production and to resume impacted results expect ramp deliveries safely we XXX adversely MAX We until
laser-focused scenario service understand fully customer range the perform financial more productivity. that liquidity, production to manage detailed also on chain, spending manage of rates, sheet our I'll deliveries talk supply later. on a little around outcomes. continue We're flexibility, about We return and fleet our and analyzing implications including to planning and to the taking balance to actions our our stay prudently increase
on to Airplanes X. move now Slide Let's Commercial
years declined revenue deliveries additional XXX customer at to and estimated decreased negative aircraft quarter business XX%, backlog billion $X.X reflecting X,XXX and potential includes and to of Our to BCA during considerations. production. both the than $XXX more Commercial operating -- billion, other of billion valued X equating $X.X Airplane concession margin concessions
the as program. on the decreased the additional Let's Security Fourth million now in reflected X.X% provision as & a previously reflecting Crew impact as Slide charge of for volume pretax affected several Crew BDS Defense, performance mentioned Space portfolio margin mix Commercial to $X well across to move Commercial on items program the charge, within as uncrewed recognition billion, to revenue lower the for portfolio quarter. of and which X. the quarter well mission $XXX operating the the revenue
worth contract billion, key During and U.S. stands quarter, outside the the now billion awards our $XX XX% at BDS won $X from with backlog
Let's Boeing service In to lower grounding, now timing to Global XXX the results fourth affected $X.X billion, reflecting of offerings. our of partially X% the impact some X. decreased volume. to is expected due demand of than the Global Year-over-year MAX service quarter, the Services we growth of lower of turn Slide commercial on which Services revenue
the as a and of mix partially services brand a in to gain BGS operating related well distribution as onetime retirement of We the by on businesses Aviall under were of XX.X% consolidate products brand offset the as we a Boeing divestiture. margin noncash charge our quarter. reflect
the $XX During brings awards BGS worth now approximately which $X contract billion. won quarter, billion, key to its backlog
Slide on now XX. flow turn to Let's cash
the expenditures. advanced cash XXX mentioned, receipts and a operating driven inventories payments, lower quarter was I As higher billion lower timing negative and flow by in fourth $X.X deliveries, of
and business from during expect liquidity will flow balance cash from adequate production pressure continued help parts flow cash MAX operating provide of time. this the other levers impacting further sheet stabilizes. We until the Strong
have at sharpen the right ensure to including assessing on closely expenditures. We our to spending operational look also excellence, of the focus of and continue we timing all prioritization aspects noncritical
to this initiatives key period. accelerating navigate we're capital help working Additionally, difficult
sheet program and XXX billion the in remains to processes share are our better Dave and pause. continue we term, mentioned, top repurchase balance the the liquidity tools. on managing will production in people, and the necessary be increases continue fourth new make leverage in and see we But and we will to also execute quarter, business, $X.X stability Near as investments our dividend, the deliveries in and resume, technology until rate production system. MAX our priorities paid During
Our debt elevated been liquidity business cash level levers continue reduce has planning grounding, more we debt priority and to challenges. normalized for all will Again, the evaluate during deployment are Investing our generation level. the flow available once it next will current our and our we repaying to a returns immediately to as we remain cash navigate few in the years.
to billion and increasing the we balances on cash helping quarter, up $XX quarter challenges. our debt to Slide securities. marketable additional billion We work position now paper ended the XX. current We Let's liquidity the in cash raised shore with and through the balance MAX move commercial and of $X.X debt as
facility $X.X and strong providing through with Our substantial markets strategy access of our borrowing capacity credit a capital sheet balance billion. us of maintaining of
we've commitment strong to the closes sufficient of could received term when exceed facility. February. $XX of this billion the on banks amount in demand, size the Additionally, transaction Based entry loan into the from facility a syndicate
flexibility impacts sufficient have ratings. of to but on at the We the navigate we operational the sheet additional balance challenging time. Currently our are levers A-, this has debt mindful AX, credit and confident
flow, particular, be significantly XXXX in XXXX. Cash financials to impacted will the year Our negatively more MAX. this will than be by in impacted continue
than use payments primarily of delivery be MAX lower to greater in flow will latest the be based 'XX, due XXXX to advanced assumptions. our XXXX XXX in cash on expect We XXX
to production I year. discussed, entry due I As as expect increasing and we're mentioned the a the our will impact this in additional widebody reduction, XXXX. to receipts XXX XXXX well current headwind as our assumptions, higher consideration previously, Also, be service cash customer be as rate liability into
decisions, but Keep to expenditures cash and payments these as And place rate. program see near our long-term including to inventory, system make production keeping supply we continue our in continuing are our the in derisk future XXX investment workforce on to production despite require mind, the focus invest we'll stability examples for in health term. suspension on chain of will in to the our production the
Given current rates, future these is as as and our XXXX. until delivery cash headwinds expected and flow MAX recovery to production return on well now to assumptions start service XXX
rate We the with to on information. to MAX as we production progress return providing plans are more committed you and have service updates additional
clarity, call further we to have will the follow-up and capture conference recent financial widebody a the investor of most will implications guidance, financial media the changes. schedule including we Once impact puts and discuss the provide which and takes,
to comments. So I'll that, turn Dave back over for it closing with some
