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Boeing (BA)

Participants
Maurita Sutedja Vice President, Investor Relations
Dennis Muilenburg President & Chief Executive Officer
Greg Smith Chief Financial Officer and Executive Vice President, Enterprise Performance & Strategy
Anne Toulouse Senior Vice President, Communications
Sheila Kahyaoglu Jefferies
Doug Harned Bernstein
Peter Arment Baird
Myles Walton UBS
Carter Copeland Melius Research
Ron Epstein Bank of America Merrill Lynch
Cai von Rumohr Cowen & Company
Rajeev Lalwani Morgan Stanley
Rob Spingarn Crédit Suisse
Seth Seifman JPMorgan
Hunter Keay Wolfe Research
Jon Raviv Citi
Eric Johnson Reuters News
Julie Johnsson Bloomberg
David Koenig The Associated Press
Call transcript
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Operator

Thank you for standing by. Good day everyone and welcome to the Boeing Company's Third Quarter 2019 Earnings Conference Call. Today's call is being recorded. The management discussion and slide presentation plus the analysts and media question-and-answer sessions are being broadcast live over the Internet.

At this time for opening remarks and introductions, I'm turning the call over to Ms. of for President Boeing Vice Sutedja, Investor The Relations Company. Maurita Ms. go ahead. please Sutedja,

Maurita Sutedja

Thank to and me morning. XXXX good Boeing's & Chief you, and John Strategy. Greg and Welcome President Muilenburg, President I'm Smith, of Sutedja Executive Performance officer; Dennis Financial earnings Maurita Boeing's Vice and is with Officer today Chief Boeing's and Executive call. quarter third Enterprise

limit to yourself we will one that take others fairness on comments, In ask the management After you questions. please to question. we call, your

As have press detailed reminder information release broadcast our financial issued follow a through and can always, as website provided we in at slide presentation earlier our today. you boeing.com. today's And

our I Before our likely any this remind are the web presentation. estimates are discussion to the need involve that disclaimer risks in filings, of in SEC you forward-looking in this to release, we statement our news at which morning and begin in projections and detailed various include goals we end

In reconciliations of to addition and discussing that use we for measures our our and when presentation we earnings and non-GAAP disclosures outlook. release refer results you

I over will Muilenburg. Dennis Now, to turn

Dennis Muilenburg

heavily I accident. months those think of XXX Thank good one the lives been anniversary month us Flight don't accidents. a aboard morning. day we the on Not weigh accident. lost since and my flights. seven It's XXX and Lion about where marks you, year roughly team the Ethiopian Air Flight will the never This and Maurita Airlines' They by forget goes these

and to the loved extend sorry the continue deepest families We are to and ones. we sympathies

our We nothing lives the personally safety important us us is depend all than fly work and on all we affect importance accidents on and who These of those reinforce of to airplanes. the more it of know do. the

slide. you walk latest on the MAX me the XXX regarding through developments the next Let

time. the and customers operators MAX difficult supporting assisting to service priority and Our through safe airline our this remains return of the

with software the laid daily on working MAX process ungrounding are they global for training regulators the fleet. and the and FAA We XXX and out updates the have certifying global

to and difficulties of want entirely scrutiny express and FAA document an presented the other I Again, it's regret the receiving. for understand on regulators that Friday instant to the we release our has message the

We the are working to authorities Congress with their the they committed investigations. and continue U.S. investigative as

We are focused on forward. going

happening the As provides MCAS like and found protection accident this completed software which earlier of ever prevent layers we three year shared, have addresses the update we to two again. MAX additional following concerns from these accidents

XXX MAX hours feedback totaling To-date global and have updated conducted across regulators software than flights operators. than tests more production X,XXX incorporates more we with and the from which

unlikely for making are to second We accidents. that to extremely flight progress control the in possibility redundancy risks announced of additional the even the software unrelated update are steady on June eliminate computer

In will FAA to the simulator multiple additional evaluations of the days, and up with upcoming update testing conduct leading certification Boeing flight complete a and this reviews onboard. software

run the test. steps. a daily progress last important these flight Just on of making We're dry the successfully week, company conducted certification certification

to this the engineering XXX,XXX spending MAX to resources test dedicating Boeing of that effort necessary on and best very the brought their hours to includes over the and have comprehensive ensure improvements that tested, We development. all thoroughly are XXX

regulatory target we forward, this XXX to Looking to quarter. approval begin the MAX return for service

authorities jurisdiction. vary This who and the jurisdiction. relevant by service conditions in timing however, timing will before, of to ultimately FAA include a determine return and said and we've it's may As phased the regulatory other may approach each

and them simulators, for our closely have them understand During this software. process, been we logic the have the and the and the other FAA with regulators. provide the documentation, working design We'll help new fly

days government are questions involves agencies weeks and and with dynamic ahead. The in dialogue constant the is their process continue being answered. of that All will

preparation the the our safe trust of and to and confidence for regulators. worked we of build customers the MAX In service, to XXX have return

and customers the we've with around partnered have pilots world solutions. from We as developed our

We opportunities those test their simulators. first-hand have our in and welcomed to questions solutions giving and them encouraged

XXX and regulators more customers for around software experience than sessions. our to We have simulator the in hosted XXX participants the globe updates

We conferences provide conducted return help ask from them questions prepare global to XXX opportunity and XX the financiers more operators service organizations for X,XXX teams. than with our have and than also more for participants to to

the is our safely customers lifted. the In and educational to quality addition, the conducting This package when augmented comprehensive weekly fully entry-into-service resources. the to involves an with technical we're grounding analytics. This deliver and of advanced approach support highest worldwide with includes fleet proposed calls to return prepare service also training

CEO. the foremost we of first to priority and our attention President center and this the return separates safe service Boeing's and the to to that earlier announced the company Chairman roles month the a as running With my change further me CEO enable on MAX,

Non-Executive Board's is a knowledge continuing with I'm deep who aerospace fully of our independent and Board serving has labor the to partnership Director XXXX. now on of has and forward Chairman. division of look strong our Boeing's since Independent Calhoun, leader close a and Lead as Dave Dave, this been my supportive industry

This discuss underway Board stakeholders. the by our of will latest Together, with be is this leaders we a I external Boeing's our processes, and to the next. multiplier work company company can force senior for move which safety just management strengthen actions governance across and several important and

slide Let's turn X. to

a Directors Committee several long-standing safety, improve. commitment the to that of our of the design that I've our our review As and actions from actions of airplanes. The of taking part announced last and development requested we're was Independent policies Board followed recommendations for continuously processes to Board I result month our five-month Boeing of

recommendations implement processes the Board's and our company improving of broader committee steps across Members recommendations the the team airplane several throughout and focused on immediate company. ecosystem. aspect the took My business to fully made further of these and policies on safety rigorously I and aerospace explored and our embraced them

established investigation company's the will and organization and product committee's safety safety that safety review new services the boards. all and input, of a review of team aspects With our product oversight maintain we accident

Additionally, we're a Chief through strengthening to Engineer, reporting me. direct elevating who our Boeing's line engineering reports function to and

establishing deck design on of center. formal a our airline that requirements and customers continue reach to promotion pilot continued designs we're flight with safety enhancing the program, safety of partnering operation our populations, expanding also program, the We're future our Boeing anticipate needs

to directors. on the as criteria the safety-related reaffirm a one top our has permanent These experience oversight of commitment and aerospace actions safety, its Board including adding are of committee of already and to safety taken steps for future establishing

reinforce we by committed to Board's higher. even recommendations, the safety In to reaching supply way the vision strengthen and that expanding performance. of boards. manage our We're to system Boeing and management concurrently chain, safety addition the are broadening serves example, and strengthens a a across improve to company-wide for use quality our review already We're safety safety, operational our our efforts implementing we and approach integrity comprehensive and driving to

enhanced human research also future flight computing a underway, wide ability and our leveraging work simulation Advanced investments in in factors, efforts capabilities flight scenarios product development company's increased have range safety. decks in to improved resulting and are Additionally, and in design. of leading-edge science proactively test

continual Safety is focus. our

can ways aerospace global be we'll aviation partnership future, stakeholders across in safety strengthen with we exploring the to community. Looking the

focus has for future. values company expanded together stay a taken come keep industry. learning safety. heightened recent talent and our these in At accidents, we'll through to invest Boeing to defining with moment, continue true we as the will this a leadership role We'll on from also and this We

as the we at safety supply to chain, on forefront, keep production our we As our remain impacts also stability customers. as well mitigating across systems and focused

earlier, quarter. As I MAX our estimate best service is the return mentioned of begins that current this to

and we by expect bring our month production rate our This to be of Based upon a XX incremental XX rate stability. current XXXX. production that per on with maintain rate supply increases will by this production systems followed chain deliveries factors, to estimate focus late would and other

included in over service, year. the the grounding produced the be After inventory MAX first with majority quarters airplanes of will during to return the expect within delivering them we and XXX several delivered

continue production part process. our We planning plans of to assess will our as scenario

As each to and of will mentioned other FAA conditions ultimately determine before, in return authorities jurisdiction. and regulatory the service relevant the timing

anticipated estimate possible change, service production or to line. including Should options further a other of return to consider rate temporary we the MAX might need reductions the our of shutdown

reiterate to personal to everyone to partner in thanks want my our be journey. continues who I this

challenging for We these many are times your support. and for mindful grateful are remain we

work discipline followed managing that, service financial through Greg are let third operating results by maintaining will an forward. of of going overview of Now we and the and details quarter the our After walk as environment the performance, expectations you our liquidity update financial on and through business our prudently return we the to turn safe me how an to our MAX.

to move X. slide let's that, With

of quarter. During lower reflecting of partially of recorded services We we billion and paid $XX in $X.XX, XXX of revenue and We share the billion billion $X.X operating higher deliveries negative the cash volume. offset defense quarter, generated $X.X to due XXX by impact. earnings core per dividends the

look BCA our $XXX performance for quarter third revenue Now businesses. the ended our of at let's quarter the worth XX Commercial operating billion. backlog reflecting airplanes nearly with X,XXX deliveries. of billion $X.X Airplanes generated

more rates, As that our we detail pressure will putting in XXX. production the discussed on before, is I especially tension widebody global trade near-term discuss later.

Tanker U.S. $X reported Space of and orders for quarter third our of Defense Space orders, fifth billion continued billion for included we contracts demonstrating Air BDS nine Apaches our Now Force for booked new AH-XXE Defense value KC-XX U.S. our portfolio. Army. over the bring to revenue & Security the the and & Security, lot across customers to Those production $X

performed refueler T-XA United the Force. the launch flight. System P-XA Also final the quarter Air of Air its structure. test for milestones received award from our in for noteworthy renamed assembly flight venture services MQ-XX included joint Red Space the Royal the Hawk inaugural stage Also the flight. the BDS accomplishments included and aerial of T-X is core Force, Launch the Poseidon test trainer, first now Alliance U.S. by satellite UK first XXXth Other unmanned the Key Launch

Moving on to tanker.

contract received billion year-to-date. five support KC-XX and $X.X the to production tankers delivered Air for and in Force quarter XX As nine XX lot We a the aircraft mentioned, spares equipment. covering Boeing U.S.

our Turning we and the representing customers reported billion, growth of to $X.X commercial strength Boeing offerings. new the government to win and highlighting business, to One value of bring BGS Services. revenue continues BGS XX% Global our year-on-year.

component as well In Qatar, Tanker five II U.S. for the Force services. re-winging the for contracts services A-XX BGS training with contracts KC-XX to Air F-XX training commercial lot booked quarter, and modification, as and Thunderbolt

number the Boeing-converted with partnership of strategic regulatory and its Embraer. delivery of XXX-XXX a operation. relevant close quarter, U.S. India-based authorities in in and and Also clearance cargo actively freighter our including SpiceXpress Japan. We're first to air the with planned to approvals towards expand have Progress the carrier took jurisdictions continues obtained engaged

the earlier The remain in European joint transaction. KC-XXX X Commission services. We as and and this drive convinced in customers create a and our XXXX. Aviation both its now review for Commercial Phase that in to We expect month the market the assessment value innovation close will well the early as traveling products transaction competition increase public ventures in and the opened of the

safe on to focusing on to the resources operational healthy, our this strong and of the are focus continued attention additional effort. In and keeping maintaining performance. be on we summary, and the our At we've priority while MAX same XXX time, business to continues allocate service the return

a further succeeded and will immediately. during Colbert effective As as Airplanes Boeing Deal CEO several that announced Boeing President Stan as changes we we CEO Commercial strengthen of our McAllister time. and has Deal of has Services Global company yesterday, Ted and made succeeded Kevin challenging President leadership Stan

commercial operational customers an business a with key and in business, enterprise digital component our extensive to Ted and our plans. growth customers airline brings partners; Services airplanes industry trusted long-term brings and Stan to experience of our Global approach strong and expertise, relationships

our his this We to grateful and to customers support also a for commitment transition. challenging our service and are for his during and tireless dedicated to Kevin time Boeing, communities

let's environment Slide that X. business turn to With the on

in years. Services. backed and offerings XX see by opportunity These to are continue growing Space of trillion are $X.X a combined demand market healthy our next fundamentals sizable that global with Defense Commercial sectors & strong over for We the

global straight year In this August, of on resilient, rates. growth seen have moderation commercial traffic traffic Passenger be outpacing solid nine growth, growth. while passenger at volume a tracking with X.X% growing to some and of aviation, continues building is we years through again above-trend global long-term GDP

fleet steady have to Meanwhile, support needs. global is incremental while see the environment. more cargo carriers headwinds, utilization orders air a overall continue we fleet amid challenging sector facing That are as said, to contracted the volumes freighter of trade their replacement year-to-date placing

rebound technology in production cargo points and express intensive solid growth traffic will air Improvements a global as be pharma, cargo air in shipments. and trade sectors, such XXXX. key in to Additionally, data industrial to in

With and emerging supported, XX,XXX and continued powered the over in economies, XX an middle sustainable, industry for maintain products. class an This needed approximately to mature models and growth airplanes ecosystem business next to and commercial see growing aviation. new cycle by long-term life innovations of years we the outlook and in is solutions continue

demand We believe market commercial foundation less provide for our a drive the aggregate, These to in solid fundamentals evolution for in long-term dynamics key continues business. cyclicality our industry.

a airplanes, One and market strong Boeing portfolio We are strong order a a this well of positioned with backlog in team. large and diverse

airplanes expected the with required replacements growth new The more demand share in continue airplanes. will to next provide command single-aisle new XX for less-efficient than for deliveries larger XX,XXX These airplanes narrowbody will stimulate older, years. and segment a of

XXX Our of than has more a program backlog aircraft. XXXX

than reflecting solid that aircraft XXX aging widebody to next early the market-leading replacement replace and for more be New widebody next accelerate have we Zealand aircraft, we placed XXX quarter, the to decade. and In XXXX activity Air for over the decade. the segment, replaced need XXX our In year We widebody expect of the seen this Air the medium the Korean see orders follow-on to families. small cycle to start for order

XXX our program. presented shared, production particular near trade in the have the U.S.-China challenges term, In for for situation we as plans, the has widebody

our on past years a for based put the As The has such our rate. significant of lack orders on part orders market pressure from skyline couple we forecasted from the have country China, as as operators part China of the practice of in of production assumptions.

management lead the part We adjustment we production is demand. the on believe decision planning and times. process, window of to production rate Therefore, rate our appropriate the to to as the balance are rate in a it due disciplined supply make

So plan beginning per approximately month, late XX XX to rate per transition XXXX, from in to we years. XXX the month for production two

disciplined account We into and process going this a of will maintain management risks taking opportunities. rate host forward,

continue in adjustments the environment and appropriate will the demand assess make as future. to We

part of industry. the prosperous inform the and We strong and and also We'll discussions. rates, customers that more relationships trade solid our stakeholders hopeful remain we world, our reinforcing And be than X.X of nearly trade continue mutual strong backlog the solution. to airplanes XXX economic planned production. of the and monitor At will provides U.S.-China maintain government our XXX with ultimately of orders, benefits a represents value foundation years and a around aerospace

the support momentum in current The for quarter. XX orders XXX its program. steady the sales generation further XXX the XXX new to Moving bridge. with These provide continued

in on progress XXXX and focusing On preflight we development, propulsion testing, to continue test. final airplane-level our systems

a progressing that not well. impact have significant test On prior results, on will data the seen our the is design first flight. reinforces or to-date the the assessment for airplane analysis static What preparations our this detailed of we've on

towards the remains components certification engine we to retrofit Once work need XXXX. good and additional GEXX supplier testing GE and successfully engines fly. the pacing in testing as engines has complete available, become ready the before Boeing test the item, will challenges. GE flight progress made first durability restarted. are to the GE has to has The engine of our installed address we

XXXX. first We place to still expect in flight take early

opportunities leveraging safety. to integration airplane and such to consistent line, testing explore continue our We commitment to ground the with additional time system labs our as improve

production the is early to assess combined the engine That in be delivery expect associated per XXXX. GEXX XXX-X first and The rate said, as now five month. XXX, we of to impact we XXXX the further risk,

rate XXX more approximately XXXX, to generation XXX mitigate delivery approximately XXXX is expect slide in of the per continue three aircraft impact at in month current be to to XXXX. We The by producing be X.X as line delivery rate of in the some aircraft. expected we the time month per

delivery further We ramping focused strong orders new that commitments this aircraft. XXXX XXX of of and aircraft, supports on a production skyline. for XXXX our and bolstering The are up provide plan the foundation

program, production for On we the XX XXX X. lot XX including new in quarter KC-XX the orders the added

to three rate to from announced, plan previously X.X XXXX. per As increase we month XXX production in the

to our In demand programs. continue solid & we platforms Defense for Security, and see Space major

Looking years, build well world-class proven the market positioned the the needs at address programs new XX U.S. current franchise next we from space future. to for remains opportunities defense and to and with platforms affordable $X.X trillion portfolio XX% of The see of our BDS the business innovative capable that and with for outside

NASA products the Osprey for F-XX and Space like jets, the to for Congress our F-XXEx Apache the key Boeing Pentagon, programs, procurement We fighter and and satellite continue rotorcraft, broad V-XX from P-X. derivative weapons, the Tanker support see KC-XX and programs Launch and including of System JDAM

robust franchise see future programs. also We support for our

We are franchises. these future maintaining a sharp focus on

to began Red recently are T-XA flights MQ-XX Airmen The Hawk. we test honor and legacy Tuskegee the of with the the humbled

and absolutely Commercial edge maintain position which the exploration. We dedicated also our Crew Launch nation's System, Space remain to the of space leading as will

the services for the next trillion market as to opportunity sector. years Turning our $X.X a see services over significant We company. XX the

chain service to We with global the offerings, solutions. our continue growth across supply portfolio expanded digital and see

committed In investments to control and innovation quarter improvements business future. for our both remains for to new with on with our with agreements growth, ops and our ahead, productivity platform software tail opportunities accelerating New products and reflects Canada growing superior solutions. and off digital signed digital assignment the manpower markets our with in IndiGo fuel summary, planning Air and team the in

that, financial you with Greg over to our So, results. for

Greg Smith

morning Good Dennis. Thanks, everyone.

we'll offset volume. higher discuss share per defense of was and the billion $X.XX with third quarter our XXX deliveries, and services reflecting Revenue X $XX for by earnings lower slide partially move Let's results. core to quarter

segment touch let the impact the what discuss the we what me and MAX we're done financials, mitigate and of to some XXX explain impacted and today going has how performance, our that Before on forward. on grounding also we've focused

For regulatory service begins in third the the approval have purpose the quarter to we the results, financial this of for assumed MAX return quarter fourth our year.

our While determined regulatory that to want just will from this could differ this and the and assumption reiterate and of the condition estimate. I timing estimate best service authorities be at by actual our return to time, assumption this reflects

gradual per increase also per rate to third a XXXX. current by late month Our quarter XX production XXX results financial in the from month XX assume the

that assume the within inventory within grounding service could return require the the quarters additional also be produced being after them of We over changes airplanes and financial to these assumptions to to Any first impact. the majority including several us MAX delivered during with will year. of delivered recognize

production million accounting program the This current third XXX therefore of the We and margin. quarter. spread planned costs of increases. and XXX primarily timing is service reflect across undelivered the assumptions These in the timing added $XXX reduce block units regarding X,XXX return the rate approximately costs program in of to aircraft be will additional of to on the

we rate other to quarter, delays. reassessment and of revised in disruptions engagements included for updating latest This service concessions with as return -- related reflect XXX considerations customers well MAX for and potential customers. as on based reassessed grounding MAX estimate information to estimates delivery the XXX During production our assumptions and the associated updated to

the to adjustments made significant quarter. in recorded the liability We have no

and that value addressing various the can customer-by-customer also we're look mentioned, we individually economic will provide. forms we've of impact we As at

affect to flow We concessions the and XXXX over And impact you provided years. expect can other of a or any to therefore, to considerations number cash our beyond. expect be

front-end but be years individual We in customers. this be to will the impact upon continue of see conversations course with few to more first dependent loaded

be fast line our continue financial related can and regarding aircraft forward, concessions key the the includes rate as customers ramp-up, deliver fleet customers and Looking the dependent and time fast XXX of we the XXX impact aircraft; how potential drivers returns accept conditions; to profile; discussed and once the to how the delivery which is the service also production return-to-service to considerations. can on

MAX be adversely our to financial production We continue customers return service, rates. deliveries we to and impacted results safely our resume to until the expect to XXX ramp-up

supply scenario to and service fleet We implications to continue and chain, perform of to financial our the deliveries detailed analyzing around customer the rates, fully outcomes. planning return understand range on production including

to We've liquidity, also our reductions options line, the capacity, and new our any storage production our further continue on to including prudently laser-focused our or spending MAX whether all sheet and and on rate incorporate will help in managing assess supply We inform flexibility productivity. insights, taken needed. as current time chain plans a analysis us shutdown actions to such our temporary of other balance increasing production manage in are return-to-service

diligently to to review continue impact the minimize will available financial all levers We

everything not been important safety priority. are values our effort and priority best focused talent cost note we It's quality leverages experts. highest for always to that It's us. from one continues MAX on be Returning across a schedule. compromise safely the are have team do We or Boeing to that these to and and the flight outside do for

resources whatever continue the to and customers. will into to so fleet in required to our the the XXX do MAX safely return with hand hand necessary working apply take We time are

slide Let's on X. to now Commercial move Airplanes

$X.X offset at six X.X%, X,XXX reflecting XXX BCA operating $XXX quarter than declined delivery partially lower negative Our to of includes years to more production. billion XXX Commercial valued revenue the Airplanes backlog deliveries. by margin decreased lower equating business XXX airplanes during margin. BCA billion to reflecting nearly higher

Security Let's on now slide turn results Defense X. to & Space

reflecting lower to particular, reflecting satellites, billion in new partially $X operating the F-XX improved T-XA quarter volume increased booked in higher volume. Third BDS of revenue franchise performance. and XX.X% on weapons by programs margin quarter offset

$XX the billion the awards billion our backlog XX% U.S. won quarter During with at contract BDS outside worth from $X and key stands

Services Year-over-year continues acquisition revenue outpace the I services quarter-to-quarter $X.X booked And government to increased mix, products to as the Services quarter billion on volume. to of quarter, mentioned due operating such for In slide subject margins Let's and as Global growth turn X. rate BGS to average and third are KLX the of market Boeing margins reflecting to the services before as results as of now growth of Global on higher contracts. factors X.X%. individual well performance fluctuations XX.X%. BGS services XX%

During BGS $XX to contract worth bringing key the backlog awards billion. now billion approximately its quarter won $X

to driven XXX negative XX. $X.X Operating Let's flow deliveries, lower timing billion advance the now and cash by turn lower payments cash was flow slide on quarter for of receipts expenditures. third and

expect strong capital help affect adversely until of Strong liquidity pressure from deliveries other balance continued a operating adequate and further the We working cash sheet business, to MAX flow parts resume. cash balance period. will this provide sheet during levers

I In $X.X third paid have we as quarter mentioned, billion paused temporarily in share the repurchase And dividends. program. previously we our

Our and remains to long-term returning cash commitment balanced cash deployment shareholders to unchanged. strategy

liquidity However production the production until the term resume managing so top deliveries stability will priorities rate increases and in system. are XXX leverage balance continue see execute we MAX our to in near and XXX and the sheet be the

the also up increasing $XX.X We Let's cash quarter the with We balance balance billion fund we debt billion, on to current Embraer took quarter securities. as marketable XX. raised help move primarily MAX challenges. and and of through work acquisition the cash shore and the to in slide now $X.X ended position debt liquidity the additional by

balance billion. of through a unused substantial Our markets strong $X.X facility sheet strategy capital provides borrowing of access with us maintaining and capacity credit

make marketplace, across remain company. three objectives business strategy prudent talent strategic innovation use investments and goal as from Our our and to the leverage unit long-term in and and we the a key continue will differentiator unchanged

eye the a geopolitical managing continue and macroeconomic to close on keep we'll developments risk. always As prudently

maintain rate as and we our to said, make appropriate and the monitor Dennis management As continue future. adjustments in rate disciplined the environment

a XXXX entry rate decrease our by As delivery of from cash impacted service. deliveries cash future pre-delivery to into MAX, and due reminder be the will financials flow create XXX timing production in addition cash also in payments. the to in particularly lower and Reduction headwind the

engine minimizing and very focusing core keeps the customers of the to team impact results and return priority significant flying our delivering while our operating meeting on safe MAX XXX customer summary, the and commitments. on in So a public, strong, service important

with While work the team have of to more return we production We're focus, that providing resources us, navigate front rate still have lot progress, we're you in of on we to MAX updates have a the to through. plans we confident information. right committed and as additional service,

to will media informed continue further statements schedule keep stakeholders discuss with impacts, public provide utmost a guidance call takes through follow-up conference to to we on we recent have our financial website. of the the from and capture and information the strive Once widebody our We'll which including changes. puts investor and all our the clarity, financial posted transparency impacts will

that over comments. turn back to closing I'll Dennis for With it

Dennis Muilenburg

foremost from and thoughts. is you, first These we'll continue They families Thank are you will right. be ones learned times Greg. accidents. Boeing, for All moment this always by challenging defining also learning. these and our and have recent I for the loved and affected a on This assure can we that

through changing. continue company. to challenging will stronger we And and we're this better coming a from this committed and time changed have as We

to driving and the enduring true enterprise. integrity stay while quality values our excellence operational We'll across of safety,

demands commitment in the waver We will work our never it. our importance of

on other our growth shareholders. and across top return suppliers Boeing on flying customers excellence XXX us driving delivering regulatory The teammates our service the to safe of the Nothing is more this the are value to to our close I and my our priority company's on customers, thank is safety in of important operational key MAX priority. the our than and of while agencies public. to who partnership with business and our returning want commitments executing priorities,

software the to we're be will we're changes that and fly. confident of to making MAX one the the the With training, ever MAX safest airplanes

remain are key priorities and strong of fundamentals our unchanged. long-term businesses The our

this and unique to we Our customers leverage and more world. One the has Boeing partners will improve around advantage our to commitments and on never clear been our deliver strength

happy take With questions. that we'd be your to

Operator

Kahyaoglu Jefferies. Our first from go with Instructions] comes Please line [Operator question of Sheila the ahead.

Sheila Kahyaoglu

morning, Good and Greg. Dennis Thanks.

Greg Smith

Sheila. morning, Good

Sheila Kahyaoglu

question a you perhaps on for cash. Greg,

next cash few Given MAX the working well with about profile free years? you in cut the of XXs, widebody production the associated capital as are and changes the the company flow aircraft how thinking the over on recent as

Greg Smith

Yes. Yes. circumstances place. of than to we in mentioned obviously that where we going MAX on But be that meeting more profile it opportunities cash outside breaks I'd of that in safely cash But say we in the the ramp considering profile and will challenging say will XXX continue and the to back be to is about return Well, off you was. long-term getting place MAX continues single driver see as in flow the and back look, objective the there. that business service the defense deliver the maintaining I'd are had aircraft forward. up we biggest between those stability our service, driver rate talked the be key the

got We've so an result XXXX. associate XXX have of peeking that inventory rate we change that that And time impact announced obviously scheduled advances cash the now build that in and the as today use decisions XXXX more the also within frame. see of a with we will

So MAX that lots puts biggest of period. being XXX takes the but and driver through

big think So you over update when the and we of really And remains again long-term path execute. stability clarity key our but are to going continues to well, But I further forward. give we'll of like to engine to the underlying drivers elements cash the we've continue and the that where that we we have going better forward be a got profile. said are objective those perform on

Sheila Kahyaoglu

All right. Thank you.

Operator

Harned next is The ahead. with Bernstein. from Doug go Please question

Doug Harned

Good morning. Thank you.

Greg Smith

Doug. Good morning,

Dennis Muilenburg

Doug. morning, Good

Doug Harned

a you'd to fix the to completed a said little previously by September. have we expected the end of had for back go you the FAA ways If MAX that

software made now Boeing that appears have at the slipped. that has mid-October we're sounded to and Steve Dickson to the FAA. So But some in FAA positive - made fairly regarding provided that statements documentation yesterday,

-- milestone now. trying be should understand ahead flight? a there stand fix? of constitutes Is looking FAA certification where the a what final And that to an there is of we we delivery for I'm So

Dennis Muilenburg

good process. the close an you working Doug every And FAA. we've that includes description those of this day basically delivering Yeah. has question. in and the And as items level, iterative products, the And final software, documents. a we are that every training hour, been the very system coordination process detailed the know with at certification been in

September. review planned. the we I FAA documents, The taken the into to get that it in all of make right. the cycles the process good think sure diving fact we're a we're But questions. answering taken that's We has longer have the a did start that little deep representation than time And incremental originally

that think is of good. level I So scrutiny

now have software our the We labs. have final testing regression in --

from Administrator FAA has you As software heard been Dickson, in yesterday delivery. the that involved final

that You important to we've description milestone. another delivered the now That's system from document of the Dickson changes also Administrator the MAX. heard final

milestones tangible more still So work but to there do. are achieved, we have being

point test we certification anticipate a doing weigh key your flight. initial Last airworthiness question that big week a of be of kind when forward the more dry But to Doug look way get couple complete that we dry did to flights. to a the run We certification you on next run directive. will to the an milestone might the flight

decision. will And But that around of fleet the to depth lean bring directed is single provide forward be decision, analysis we data going back regulator's we're can. of that be every FAA's again We're and MAX the the to answer final the decision and going question. sure complete. un-ground every that piece to to We're the make going up will the airworthiness

can I daily we steady progress. tell are And making you

we're performing the well-defined continue on to We're a preeminent that we'll we sure and the going plan milestone it as make to have to right, focus And And plan. is it's the share safe. here safety. progress go. time against take We get

Doug Harned

Okay. Thank you.

Operator

Arment Next Please with go question ahead. is from Peter Baird.

Peter Arment

Yes, Greg. good Dennis, morning

Dennis Muilenburg

Hey Peter.

Peter Arment

the really, general in This the XXX production is Thanks. month successful. at confidence could just cut for of the about XX thoughts longer-term you that for It's on profile decision. that rate production a holding maybe XXX? just been so levels around kind about program. Dennis, just first Maybe that talk obviously,

Dennis Muilenburg

Yeah. decision it's good question. a a Obviously we not that Peter take lightly.

As mentioned as key and long-term drive management before growth. stable, Greg our principles, is of that something production about will we've one rate talked discipline

widebody Our haven't prospects market still that positive. see for changed. We the long-term as

the my roughly next in to widebodies over we X,XXX see mentioned new I As market comments, decade. a medium-sized for small

wave in about that that replacement the cycle we've see early coming. decade So that previously we next still talked

our that we And decision. from we're production from materialized, China near-term, orders has on skyline make on orders need have a But time China. system to and not dependent in within the been those our now lead

reflected here. you what that's so And see

is is U.S.-China going two fits months decision the good a decision to good plans take We're make approximately the and then seeing. to with continue two think years disciplined signals the our We excuse or and rate going the for a XX that to monitor forward. -- down market discussions for we're me to continue policy trade we'll to

parameters that a customers' affect approach. the that our process. And disciplined decision the something of with very chain process we're all today have We disciplined supply market, at our might is decision other that's looking health, the consistent making announcing for

need is prospects with So we the bottom have to here but the our line realities. near-term economic changed, that prudent in match make decisions not long-term here

Operator

ahead. with we'll go go UBS. Please Next Myles Walton to

Myles Walton

looking Good clarification the XXs now then mid-teen looking I repurchase. share points the block I'm Greg out mean lowering margin on XXXX morning. everything until XX anticipate you now the in had target up? repurchase curious BCA after was XXX don't comments more you've just the interpreting is the just basis we a accurate? that range? share are changes, XX% guess there maybe you Is XX% with Dennis, the from XXX, a And back to Thanks. while. your forward all program, rates a and I

Dennis Muilenburg

Greg you want take the first? question to second

Greg Smith

Sure.

to And, And mentioned that got that I don't get the well. to as we deployment share sheet and we our address reassess then that we've level course, to return repo got -- the once we on think I we've plan and cash executing we'll balance We're debt rates efforts. reaching anticipate of on service. expect. additional the stability until as production

we're a we speed, until milestones satisfied as result with cash get reaching cash we'll -- we've long-term it certainly we'll those said objective readdress our but those milestones, deployment strategies. as repo. that is got on you that the we're before expect up would through milestones for. where re-execute keep to watch we'll I those but So and what generating to we are to was, And our key the are of But

Dennis Muilenburg

first And margin Myles the question, operating on similar your to side. thing

a not targets changed. objectives and business. margins mid-teen long-term driving Our still have We're towards

near-term, most important going the service we our making We that safe to that. to thing is in we're the in haven't on do for of But plans of focus That altered and our resource the and invest can focus again is all return our happen. laser MAX. the

fundamentals discipline interim lot investments period. of making rate in in digitizing during we're business, efficiency the factories, The a and these this the we're of drive continuing our time enterprise, principles to our lean production

reasons, track in question have will and the for XXX we're make to of no for And for But opportunity using continue the day this any we can and us manufacturing focus the and on on those an reductions safety in term, that is to healthier near the had our to also as our rate line is advanced for I system a safe run long targets. the MAX. every keep on focus production production service And return forward you preeminent invest question, While tell on without our going line long-term some good make of quality. the to maturing processes.

Myles Walton

you. Thank

Operator

go is ahead. from Carter Melius Copeland question Our Research. next with Please

Carter Copeland

Hey, morning, good gentlemen.

Dennis Muilenburg

Good morning, Carter.

Carter Copeland

just comment. in significantly cash. increase, in Are better? there to the margin on Greg, should dive steps so I have wanted of didn't rate decision? mean margin -- we out terms increase? numbers deferred last it it quite receiving been longer and because I to on the just And Or no have earlier a that your in on assume that there less upward several quarters. the XX be looked production MAX I good because of the in then like you the Are this that is might Just PPs several just advances? and that you've catch had you clarification scale in similar

Greg Smith

their with as team within great not in XXs that Xs, across we continue The the well executing the but these done margin. integrating of continues team you profile seeing Xs. to two seen, as blocks. the and The chain expect the job supply in through only job mix and partners has do should the plans between the that sites, in on results The a a you're great that to work you've

That the levers block. as about well as blocks favorable mix. to step-down we As as margin through our there supplier productivity, work talked within be key are some will those the own we

So that's executing do that associated program. if about to as you'll fundamentals. all those do margin And see that the with on planned, continue expansion we and

obviously particular on of XXX advances, the so. advances and appropriately in has the profile On changed dramatically

profile been if at were we again advances. some getting it rate. with of still those are is different But we shutdown very the clearly been So all would have And than that rescheduled. full have

back going But So that we do to stability about stream delivery. our picking forward see maintain going up on flow this. through we again each work higher up advance execute that continue customers of talk on we cash that the start we'll period and efficiencies, as rates and as with and to the a with associated and

key to now, I get to cash But going service. enabler a pressure going cash this until period see as obviously So continued for said, right as forward. operating you're back -- we on we're cash on flow at

Carter Copeland

was And what the in so just seen quarters? to to some that recent step-up similar of be clear the margin, you've on XX

Greg Smith

from kind significantly again again pretty just profile plays well. into mix delivery depending that on varies and -- depending of overall quarter-to-quarter and It Carter model Yes. mix on just as

Carter Copeland

Greg. Okay. Thanks,

Greg Smith

Okay.

welcome. You're

Operator

Ron is ahead. question go Our Bank of from Lynch. next Merrill Epstein Please America with

Ron Epstein

Hey, good morning guys.

Greg Smith

Hey, Ron.

Dennis Muilenburg

Ron. Hey,

Ron Epstein

guys leadership right? interested and along, right do on we commercial, forth? so how we keeps And in NMA? the think we -- so mean think right? about margin about how thinking you still Boeing with the the are about about you how So is NMA? project backdrop stands are How a that should And where guys in now, with do think in change moving NMA I broader

Dennis Muilenburg

on let our all Yes. me clear be of priorities. Ron first really

resources for constituencies. additional all And our there. that's priority safe there. focus. suppliers, to put clear We to our additional clear all to Our the MAX our of is and is clear applied return team, service been of our talent we've to That

decision to our are not mind, with yet. NMA. case. to the are point point that at are be we business mature still forward in with drive Now at efforts We nor continuing a to a we decision ready We're evaluating continuing

continues that for future reduction and system to a the production the in around productive be continuing of us. We're invest to effort risk

to And when investments. we'll to will. make ready So leverage decision continue a those we we're

make still on at our our a good to talk be to time as We're question, we're a the still a service looking ready. prudent we'll decade next let no interest. So decision for entry-into-service MAX. is safe middle project focus And of of But when frame return customers. we there

Ron Epstein

you. Thank great. Okay,

Operator

Next, go Company. we'll Rumohr & ahead. to with go Cowen Cai Please von

Cai von Rumohr

you much. very Thank Yes.

achieve so again milestones required about to So those because of resumption directive, you U.S. maybe at then of receiving Thanks your U.S. milestones are the between the service, milestones your in customers most much. through walk not February flying talking the the FAA can and the year-end. in us and sequence airworthiness AD of

Dennis Muilenburg

bet. good Cai, question. You

the that you that through technical that at the evaluation laid software handling near simulation one this from the finalizing Let a is in come with of stakeholders evaluations. we're again, pilots of the as plan and of line external and teams the And and take with out me airplane. just the FAA all steps that very term, with go together walk marching a regulators. if a includes will top we that line software. final into and that our you and In through we've the evaluate the will quality -- and level. working airlines to pilot series detailed will that That we're referred our near-term milestone There's

external will Joint a regulators of of have again will authorized set the pilots conduct by that the we a And materials. that what in, pilots Operation also evaluate We'll training Board. call coming Evaluation set

to the key us. the the for training products. second the and evaluates over those One So are milestones update that near evaluates software airplane; that term the two

will will And Airworthiness decision roll the that In us. that earlier. flight for other roll Directive completed, be regulators the I those mentioned into into that two completed, done, FAA as That of another that assessments are the milestones then milestone the frame, make. evaluations that we'll after same make those certification all and key will time are are will

airline plan up Subsequent the into through. of I aligned with ungrounding customers. the walked and phase incrementally the aircraft customers we the just of move Directive there the And would that our the perfectly and for detailed you're then that our out bringing the points are issuance airplane, to ungrounding you seeing fleet from of operations technical the Airworthiness reference

they plan. aware operations, to So the full there individual up, time and resume that can a each ready includes And revenue-bearing they're of that safe making directive when airworthiness and sure is perform. very between operations. airplane is And that each period bringing airplane

with as our working, then and but back number tail number be to customers storing been get we've ensure health we'll vehicles, working been bring airplanes to full successfully We've up ensure the of the by back those revenue-bearing tail they to fleet can operations.

between operational Airworthiness dates. bit are Directive And that's time a what quoting customers see why now a and as lag the going our of you

be those up will hopefully So, up airplanes airplanes that all a multi-quarter bringing operations of back fleet a gives plan. you all feel of the those of grounded operation. to And and the ultimately, for back time phasing stored

Cai von Rumohr

Thank you.

Operator

go question next Stanley. Lalwani ahead. The Please from is with Rajeev Morgan

Rajeev Lalwani

on a Good at moving slightly direction. Dennis, staying Hi. XXX, Greg, maybe the different morning.

about in In of here over customers. like more are seems obviously have last backdrop at mean, seen easing of cetera. not the a with just talk couple Maybe aren't cancellations? there, et orders the I backlog, the terms minimum, Obviously, it of in you that a quarters. interest stable remained with issues, the But dialogue the some wave of advances MAX out. it's pushing

color. want some So

Dennis Muilenburg

the abreast around in the progress We're strength making with conversations them backlog, productive we're in good service. of a with daily, on engaged world. We've having backlog. return been We've Rajeev. safe bet, to stability You that our the keeping seen them our continued customers

they see their what still, XXX the ultimately to it world, the know MAX operations. of bring customers will the and value around Our

So that stable. and remained has backlog of solid roughly X,XXX aircraft

trades had differences to model have move customers given lines are discussions In time who, We needs, some fleet positions. and may model cases, with skyline want or options.

with So our compensation strong I what and think, within discussions profiles as we models, think around we're having know, There the position stable see is very in But customer is that around of trade of through space a some globe. skyline the positions. delivery as backlog commitment context customer customers. overall, to you all we those continue

Rajeev Lalwani

you. Thank

Operator

Spingarn Rob go to Crédit Please ahead. we'll with Next go Suisse.

Rob Spingarn

morning. Good Hi.

Dennis Muilenburg

Hi. Rob.

Rob Spingarn

concessions slipped material prior December. couple the least and RTS, the it likely there, that not we to ,no to Greg, to questions, regard the to October of at changing change from have with for seem, does right

wouldn't a So see I change there, couple see a adds delayed to why it certainly because airplanes. wanted hundred we

other are correctly then in the not that on of this had it X.X the aligned And billion. the figures endorsed the part they understood I last were figure? concession customers is, time, If how necessarily

Greg Smith

Yes.

Rob Spingarn

them based has agreements on changed? with weren't Those necessarily that

Greg Smith

No. Yes.

say, would there's Rob, lot a goes that that. in I So,

going through quarter-by-quarter. obviously, So on a we and multiple obviously assess data into basis go that it regular that and points,

with that could obviously, change, So time.

settlement expectations So dialogue the working them through be our a it be. impact continues discussions will of and the on their customers, ultimately kind regular with customer-by-customer our of to and then a form and methodology,

So for go say, significant change in impact again, overall, again, -- we we will of in through is every in based it quarter. part I'll points is those we outstanding that they one conversations mean and that. say, including we what's a liability, I'll liability our regular, experienced. have see But a and expect But, on believe have did of going don't, process not assess multiple kind this what again, quarter. of that the we data could we assess every a not does This won't we change closing That not see change that forward. what

Rob Spingarn

Greg. you, Thank

Greg Smith

welcome. You're

Operator

ahead. go Seifman we'll go Seth Please next to JPMorgan. And with

Seth Seifman

Thanks morning. very good much and

Dennis Muilenburg

Seth. Hi,

Seth Seifman

just aren't for quarter, the think sorry, $X of burn thinking cash QX? that would Do about terms I I you the something billion Greg, guidance But that challenges some in QX similar plus in dividend. assume definitely will it. we forward, in in trajectory going $X of have giving cash right nearly appreciate the guys billion now. about still And

Embraer. of There's the for sheet, that balance but on is some cash some earmarked

the just and profile about to You in maybe sheet balance little more, numbers, maybe expect talked talk and still even sheet to potential a the you broad have balance additional you about levers. bit liquidity Can near-term what do?

Greg Smith

significantly timing vary advances, significantly. look, or just varies quarterly a of Well, know, short can basis, term, on Yes. that through and expenditures you just the through over as

would next, as and necessarily apply know. not take to you one I So quarter the it

fourth the key around got around So course defense well. milestones in within and we've quarter deliveries advances, of our as business

delivering So there drivers forward. takes ramp, units, and again those there's assumption are of in to RTS But off in puts that that lot of production our increase then real cash key and Seth. going rate a

assumptions those obviously change, if So, and resulting in profile our that. that change will estimates

say movements. near So that's the term, I'd

that, the nice doing is on outside you their MAX went Beyond again, we business, this. a navigate of job if defense working business reprioritizing We're services as capital. through spending

the that, really actions kind of airplanes. markets. to RTS understand liquidity some in around we'll do as taking and again, proactive until start to And delivering pull additional we're short as prudently, that. over various balance can We term. see the But we I we do additional best sheet don't managing If we do and levers, said, that running need and well scenarios debt we'll have to final And again our this as internally levers. continue we then banding have

Operator

Hunter Keay Research. Please to Wolfe Next go go we'll with ahead.

Hunter Keay

taking bit guys. for Thanks morning about to a I'd process. certification me Good little on. XXXX like talk

impact derivative If and of to yet, the a you've the the the going customers operating decision think but a versus type? like you itself, Thanks. type don't the not -- costs but only that process decide they economics -- benefit; training or whether new airline things you're I said new when how does derivative that like consider go for

Dennis Muilenburg

that the thinking to we on going XXX -- might we from that any we're XXXX. lessons The learned through through be MAX, have, work make FAA. any learn is want the with the to key revisions to certification process might any any process and we the that development we're the certification timelines applications Hunter to might or and procedures, Yes. to point, continuing and that updates

be continuing early in and if be are we'll said And EIS sure towards with regulators those early through all to again, XXXX. the plan discuss the of forward. delivery or details coming going any our As we're into we're plan we'll the looking And those many factor to thinking I that first to of march any the flight requirements, the updates planning then over and the certification next at the now there year first months. in

Maurita Sutedja

one question. for more time have we Operator,

Operator

from Citi. That will go with be Please Jon ahead. Raviv

Jon Raviv

Thank bigger MAX been you. Dennis, picture On a the again, grounding. with it's that while topic

to in You've seen we've some shortfalls what it your of takes and previous seen certify the processes.

to XXXX testing future current that, some long term if more make the engineering the sense So extent there's whether essentially maintain beyond just aircraft and could development the uncertainty does to cost -- over capital the around And certification? it just priorities? allocation in what it's why context

Dennis Muilenburg

Yes. and forward. and flight a testing development take lessons And applying have MAX at from development to everything process that our once we're process we service, is look we're and of the from that learned as we going safe now into certainly of learning get right development our with might the factoring any programs Jon continuously to previous again anything processes, proceeding through always programs. we're return to learning all the

look board safety designs our look a the hard a We're future. deck at our certification at processes take to taking for We're review going processes. flight

terms our development things our allocation, of in those factor changed. programs. into haven't will priorities priorities of future But for All capital those

that invest in way organic growth for of said, use that that the to the that a use best future. the It's We different always in capital. and our think be we've haven't going to future. is one our growth us here anything direction, we of continues And case. number investment so continue we're the in seen cash to would turn organic As build our we is

Operator

Senior session. that Boeing Company please Ms. Toulouse, question-and-answer the Toulouse Vice gentlemen of now return for remarks go and analyst by introductory you I [Operator President Anne ahead. to Ms. Ladies Instructions] completes the Communications. will

Anne Toulouse

morning. Good

will Dennis for Greg. ready and question. And We Instructions]. that media John questions the [Operator continue with for first call we're

Operator

And first News. Eric Reuters we'll go to with Please go Johnson ahead.

Eric Johnson

much. Thank very Greg. you hi Dennis, Hi

Dennis Muilenburg

Hi Eric.

Eric Johnson

take why is changes. I risk And so for approval, then McAllister? and ask some details overseas or the longer the made delays you Thank on you've as can wonder focused fire wanted And from on separately, you to get of to decision I see FAA surprise as -- but regulators Kevin more how comments on to they you. the

Dennis Muilenburg

which we've on includes your and on team been with of out has this certification hand-in-hand they All interfaces Canada, Europe. convened of FAA EASA regarding Transport throughout out The working the ANAC the right. those call process. first FAA Eric something regulators, management international entire question Brazil, that

the with frankly the several -- dozen regulators been regulators We've and engaged China in around world.

So this with is all regulator lead FAA's highly a process role. coordinated the

like FAA's the international with the system shared regulators. certification of I things some taken other mentioned description document, same Those earlier with things the like deliverables that have deliverables are approval also We've and those undergoing the review.

this all done, concurrently. So of is being work

some reviews actions the additional additional until are these we Now may international from have of complete, regulators. questions

approvals coordination will is mentioned be line. their it it ongoing make vary I while well earlier, jurisdiction. And decision. As Ultimately the could by will will time that again that regulators the be

and consistently with we and are will But the continue share regulators. all transparently to of the data

safe Our interest the here service is is That return to on the of MAX. our focus.

second is that To we we And the FAA. to strongest on changes, our continue we're the well. as question here again, And our the with ensuring field regulators, to working focus on leadership that team we'll can. other hand-in-hand your continue support

that decisions these to And a made our plans, are a company company, strong changes plans for that growing these are future. that and as plan. have aligned with the And our leadership are with we've aligned

Our delivering focus and is operational performance, on safety and quality, and excellence.

Operator

with next ahead. Our Please go Johnsson question Julie Bloomberg. from is

Julie Johnsson

Hi. Good morning.

Dennis Muilenburg

Good morning. Julie. Hi,

Julie Johnsson

Hey, Boeing and few hinted a deal a at ago, China? Hi. agreement. for trade between the us your Trump Phase ceasefire, with would a coming President walking U.S. through you mind expectations weeks one mega-potential

was $XX to, to in wondering, as should up the I'm cut what how rate puzzling billion mentioned we with square $XX been billion he orders. also today. And he XXX that We've to referring when

Dennis Muilenburg

We've on we're discussions. U.S. and mentioned, I continuing China to in discussions. the and good both Julie, the question engage inform Yeah. to those as constituencies the continuing been trade with

to continue benefit to We with see, both healthy ecosystem. a countries aerospace

Here in We the exporter. the $XX about trade U.S., aerospace year the to surplus economy. contribute as U.S. is you largest the of know per industry billion

the airplanes the U.S. X,XXX are the of those And we next that in in jobs here mentioned strong airlift We manufacturing generate China, about are I've capacity. those XX industry. XX,XXX a years, Of manufacturing China. clearly over needs new heavy

And continue so in there's interest to mutual countries we that both see.

I and the at production we lead recent don't a in direction. have fact think the good productive. line, given been the times. discussions within point, China that trade from this time They're But moving have we're orders firm

decision have our on we support the in what XXX future. important to Those going make very the for reflected still which monitor so to And trade the is continue the to discussions. line you are see announcement and We're China today.

consistent to that But And very for company, And have production disciplined in announcing continue rate the be, our is that with we're to of today our decision to discipline. purposes we're do management. going that. we

Anne Toulouse

we Hey, last John, for one time have question please.

Operator

And be with Please that Associated ahead. go David The from Press. will Koenig

David Koenig

they week, curious, going you reception flights, there? ahead you that? of to to families say Muilenburg, What you with meet your do you I'm will Yeah. next are any looking are kind of Mr. preparing be congressional the accident for very much. who from expect? how Thank And testimony passengers the

Dennis Muilenburg

Yeah. hearings. those for David, preparing are we

that. been requests Senate we're the to going both House. do And document the the we've course, continue from committees supporting Of to and

lot questions, We And I'm challenging will questions. to welcome in the of those a and scrutiny. hearings. looking I discussion questions, participating anticipate tough be there the forward

support we we're work on frankly, the that the And doing. scrutiny

of the that's clearly system aligned And That safe think is everybody of company. objective the aviation of committees. I the on, know the our interest country. interest a here for is I our

talk we're participating represent And about with on hope to and it doing, a represent forward at all again in our safety. what what And next look about. to our I company I week. focus those culture. that, the That's is hearings that's hearings And well,

as go those by loved sympathies as them, out of never represented express next That to go able families will I at will families anticipate been And away. to my these And to And the hearings. that to mentioned our and accidents. to be have continue I affected those I ones earlier, be that of the sympathies we're hope some week.

Anne Toulouse

earnings you joining our call. today. concludes That Okay. for us Thank

if media, the again. you XXX-XXX-XXXX. For our please at Thank members of further you have questions, call team