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Boeing (BA)

Participants
Maurita Sutedja Vice President, Investor Relations
David Calhoun President and Chief Executive Officer
Greg Smith Executive Vice President of Enterprise Operations and Chief Financial Officer
Carter Copeland Melius Research
Myles Walton UBS
Noah Poponak Goldman Sachs
Cai Von Rumohr Cowen & Company
Seth Seifman JP Morgan
Peter Arment Baird
Doug Harned Bernstein
Hunter Keay Wolfe Research
Jon Raviv Citi
David Strauss Barclays
Rob Spingarn Credit Suisse
Sheila Kahyaoglu Jefferies
Call transcript
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Operator

Thank you for standing by. Good day everyone, and welcome to the Boeing Company's Fourth Quarter 2020 Earnings Conference Call. Today's call is being recorded. The management discussion and slide presentation, plus the analyst question-and-answer session, are being broadcast live over the Internet. [Operator Instructions] At this time, for opening remarks and introductions, I am 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 Boeing's Enterprise today Welcome earnings morning. Executive Executive you, good John, Smith, Greg to Chief Boeing's and Maurita Boeing's Financial and Officer; and Calhoun, President call. Sutedja, fourth and with David me of are Vice President Chief Operations I'm XXXX quarter Officer.

at reminder, and slide our website broadcast can presentation today’s boeing.com. follow you As a through

earlier today. As morning our the issued our of always, in risks, forward-looking and we web press include in we in financial provided are detailed SEC news our end involve this this presentation. estimates in information Projections, statement in have detailed to which discussion disclaimer goals are filings, the various release, and release our likely at

refer earnings measures. presentation addition, release certain reconciliation you and In our and of to disclosures for non-GAAP we

over turn will the I Now, Dave call Calhoun. to

David Calhoun

was our our Yes, our staying everyone. morning, challenging you are XXXX thank safe. for industry, historically our all for Maurita. you, business I for hope a year communities. Good and world,

months. happened that the our our We best day, associates. the well-being disruption, can lot protecting to and minimize A has every managing operations while few of each last always are we the in

regulators hours you our issued to hours, flight Transport X,XXX journey. The on scrutiny So, I service reports encourage airplane. engineering check quarter. the marking This FAA and regarding effort, let and highlights XXX XXX,XXX read our XXX in significant completed the and roughly MAX airplanes made is important resumption of have through. of by the United the flights, various the put culmination this a intense Canada, including of next approved We just in this starting Europe operations, return of some the XXX ANAC the test all X,XXX me begin they sharing by with chart. on morning the Brazil, over our the in MAX progress to milestones comprehensive program the EASA on States, on would

efforts in the history, most of of confident aviation in our rigorous we're Following safety one certification airplane. the

We non-U.S. the to safely continue remaining we will service our to return occur regulatory the worldwide. ahead. and follow the half to steps assumed approvals will regulators We’ve of that XXXX, their during global work in airplane to first continue lead and the customers with

each customers they Our returning with their for Every and training for is go return as existing service service, supporting for revenue our planes their their first assisting them parked has process. through to priority timelines different of operational to airline fleet. We're pilots. considerations

over X,XXX highlighted to relatively placed announcement. Alaska in flying with and Based to hours customer the into XX, consistent encouraged aircraft have date load X more safely Prior which Next, we’ve necessary acceptance averages. and for tests and delivering MAX stall date rolls XX. the airplanes that we're has of our Ryanair focused air recently airline of on and airlines are operations airplane to customers, and the our to return as flights the our factors with ready FAA last customers December us in January receives passenger our year. delivered FAA We're been performing by with safely most fleets the to conversations to X,XXX are their the all fleet progress than airplane, have and also inventory, total approximately teams XXX delivery confidence returned by Since customers, XXX each review. service, and pleased a the have delivery approval MAX care and on safely flight customized November on the ensuring began in XX

addition Space our & customers. Services Defense, for continue delivering to XXX our In progress, we

a Let of highlight accomplishments. these me few

an with first a performance achieved team unmanned awarded Air selected for Royal Global for aircraft training and completed was for refueling fleet Wideband team aerial Global to Singapore Force. and based New space and security contract Zealand Our communications design defense the Services SATCOM-XX+ of provide P-XA MQ-XX satellite store logistics Our review engineering flight the the F-XXSG

industry the to ahead. response turn Broad next portfolio scale spending fourth quarter underscored let's relatively $X Nevertheless, slide platforms. for add of remain to franchise continue pressure billion our businesses and and Now, discuss defense major services defense the defense across the in the to potential the solid significant to global on Overall, is environment. support demand by government BDS of in has the our key and COVID-XX And we stable. space programs. see the global government spending the for orders booked to years

for we seven, month, contract awards lot for XX this the and Air which lot Force. additional also received KC-XX a the U.S. six tankers include Just

and traffic months help Additionally, X the XX% XXXX and will very includes space place provide saw of recovery, for stability our defense, our business. investments government Similar putting diversity in pace. from a challenging year last market leading across travel pressure and to fiscal our portfolio next defense is restrictions bill quarter, airline critical products services Despite commercial The on X continue will the for passenger In move of progress key front, long-term improved XXXX. COVID-XX entire to us November we rates albeit to the on customers below vaccine remain the pressures remain market continue to as we to be the significant remain to cash while industry. the and forward. the slightly due market, months high we the COVID-XX. solid traffic. in fundamentals near-term many in Domestic slow continue trends domestic to intact, our see services

seeing Regionally, rates because resurgence experiencing XXXX a continue trajectories. risk. travel a resulting be recovery. with historical to significantly, more drive remains domestic has and at are we're pre-crisis just example, rates America, of our continued uncertainty their rebounded The markets government without dynamics continue segment fleet below global the airlines international although of pullback to in traffic the coupled of policies utilization China's about still in is three protocols. are year. recovery of On global related meant in Recovery government size the hand, has large for the the operations with XX% evolve, level, active XX% these case COVID-XX prior international been below around due then the half below is Europe different uneven not it's passenger depressed, entry international to in the the November to coordinated the weak traffic, normal flying level. And on of other and that border has in operations still restrictions. cross very North absence traffic that quarters its finally, averages, levels. part And than restrictions

X,XXX being As of and the fleet anticipated, aircraft growing. number from continues to the grow, active retired

XX% We COVID be airplanes efficient this will retiring as our it as as focus much with in environment. that trend least and XX% for efficient expect longer see. them more on oldest the their continue replacing the mirror, fuel rearview will customers takes better airplanes to new to put to and we and more The the retirements

due before flying freighter cargo with from than belly market, more we're freighters today to As an airplanes. interesting the capacity to limited pandemic, passenger seeing the dynamic the

in demand showed of as Air freighters DHL fueled, in The a four XXX expansion. traffic recent our dramatic decline, year seen orders, has past XXX e-commerce for remained the for freighters. supported year-on-year growth freighter cargo While for This eight overall yields from aircraft and expressed from the cargo have elevated. has Atlas

and global We our be trade also will demand to freighter recovery. driven long to by incremental over added orders the backlog and conversion and GDP continue Services Global cargo run growth

our bolster trends as expect previously, we the We’re with take return IATA rates. encouraged and around well recovery three medium-term the support long-term long-term speed and belief few that of XXXX we've shared the by travel other for vaccine the to we beyond These our levels, will and return groups, and of market. industry our Consistent growth it development Again, trends. in outlook years strength years three see as efficacy the phases. in a to what to to

India, we're large improving the like First, domestic States, places traffic United other seeing domestic in and markets. Brazil,

require recover as for intra Asia, such quite period. recover demand is while a the to aircraft to Europe faster, longer last bit long And a and begin demand be to which intra flights. narrowbody back. most will then widebody should markets routes, intra for expected the bounce regional finally, haul Therefore, international will Next, challenged America's co-ordination remain

move the forward, testing interactions government vaccine mechanisms we progress recovery. distribution, As of and coordinated drivers on be key will

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we levels. and demand service emerge fleets Although their that recovery. newer to been Accelerated will some to when we from multiple has previous will pandemic the recovery starting continue retirements stability, reduce result slow our anticipate are and to also the prolong years in will demand reach see and take we

And COVID the including industry as of managing the stimulus to pandemic. customers, and has efforts This to world. customers packages the fundamental the been enable These over bridge for to the by market relief long-term support the for we're for the aircraft environment, to Congress globally. our a number been the be liquidity to interest the our proposition broad that to situation, into financing, as continues have Boeing. suppliers. as us the faster in continues access and entrants Financiers past believe new and vital recovery year challenging helpful the several the and our We there global need investors liquidity the programs, and passed Despite relief underway be of years. supported industry, generally help space will aerospace connect by understand the in navigating similar to well Given value and we recovery. the last unprecedented demonstrated market for

market to gain plans A see and our reach meet we be customer remains realities, to emission As goals. will key. support differentiation lineup airlines to well-positioned and airline product needs adapt these product and versatility efficiencies

their digital provide digital important fleet. for capabilities as solutions continue our by to agreement recent highlighted with decision our example, Airlines to XX-year customers, to Frontier us sign a services For

provide portfolio of backlog and recover prepare Our the grow our future. to the attractive in and foundation as a strong we diversity

turn production Slide on rates X. to Now, airplane let's commercial

customers with needs. We’re closely their to coordinating fleet understand our

done environment demand, at airplanes, South provide both Carolina. our work our on Starting the in conducting Since we're market across with with broader those inspections ensure undelivered inspections, XXX comprehensive of shared, the supply partners. scope updates monitoring last we're we’ve in expanded the supplier some While quarter, and program, as key programs. aligning to Everett let me we've including

a assessment this customers our validate some good in major Our no rigorous And joined issues shows committed areas although work progress, throughout ensure analysis other our we've to able to none meet our specifications. majority concerns. is each that the time on now of represent we clear. identified steps. flight made for next safety taking the requires Nevertheless, our the resolution remain and rework, of to been airplane engineering few identified FAA the in and and has inspections are required. the continue analysis, action and while sections. is Through thing a for is further In the Transparency process. of us, areas with to completing terms including coordination be of determine the cases, We've both previously remaining near-term the cost, to in this it to impact do. areas, we And right schedule

the complete weeks, to they we it more few work As time we provide take may that today, engineers will our but analysis. need a see this

later determination our to looking on to require this footing when We quarter. Based from what we I built not work the us to know the to our rework is on be our stronger system deliveries production airplanes are recovers. inspection. there's do to changes This resuming implementing deliveries with to expect we in consistent market XXX to our position customers, forward discussed, still further We're resume specifications, production today, meet and process eliminate ensure done. as XXX newly but

any majority be However, know loaded by expect the in year. based to if few, what on it deliver inventory with we the the and month back-end we the delivery February. vast no still this most of XXX of today, Also will aircraft end likely very

We will progress. on you updated keep the

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working will market delivery of assessment financial on applying XXXX applying to of also timing. lessons all and the first our to experiences design MAX regulators updated the and with anticipate certification programs, This global schedule to on respect XXX we number of the the the plan. on this certification meet that discussions to closely all aspects program listening impacts necessary to the reflect delivery requirements, of prudent and the involves It global in development. a feedback program demand XXXX late including We're factors, occur as the global our and modifications with quarter XXXX and This On involves customers assessment an now COVID-XX XXX expectations. XXXX. learned our regulators recertification with from making XXXX various latest impact their

we've assessment, made decision of modifications to the part the As implement certain to design. aircraft our

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challenging coupled timing delivery customers business impacting our is climate preferred our assumptions. our customers. our current with factors These conversations market XXXX the Additionally, broader about informed with

in of initial will a a these driven which component the booked result the Greg a a program by As in pre-tax assumptions, $X.X program's of charge quantity. updated in we’ve is reduction accounting billion significant detail the quarter, capability Despite challenges later. will the greater a confident offer unmatched customers. XXXX facing, industry the financial little through go are in are we impact the in airplane we our the and it

lowest demand cost large for the more total and suited airplanes, of over which With of the widebody the a a Across decades, competitive are deliveries we completes distinct two with our projected market over XXXX. any capacity widebody, seat market X,XXX payload than replacement operating family well per widebody most the next XXXX advantage. leading XXXX see for widebody

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expectations Our in combined remains for XXX, month per at production XXXX rate XXXX. two the program

production XXXX. to We to efficiently continue to assess our transition the plans

with and gradual program, the expect only demand. we're currently rate to increases to Turning increase in XX now month XXX at the gradually producing XXXX. to a to further low rate per expect we correspond market And

monitor inform backlog. for aircraft X,XXX The our our had production chain or the will as assess XXX as XXX we balance XXX. continue to ramp end we of XXXX the with plan our the change will no be will and continues We to transparently we quarter, delivery continue rate dynamic, and to profile in help to communicate supply it to prudently of will across our our production demand programs. the XXX market approximately At supply closely all ensure the we and for There's plan stability.

it ready airplanes. to does, Although of our and when unprecedented customers this with family travel air are will we we support uncertain return, remains will well-positioned time, a an confident and be

on quickly priorities our let's at look X. Slide Now, XXXX

one airplane living trust, step all delivering transparency of consistent. global at a and past time, day pandemic As you'll side our a this continues our And that at we'll to worldwide, committed key remain the our the with safely priorities on returning time. along Navigating of closely our stronger commitments. to rebuild demonstrating We efforts and with remain on rebuilding stakeholders by one working the on see, XXX focus through service years. the two do be building our to to way, every over a other values,

we these is commitment values on focus Safety Aerospace As part Officer. of first sustainability. safety, with our recently announced our Consistent Chief continued to our

make operating remaining better. sites greenhouse emissions. by efforts, at continue into in while work great energy strides to our We renewable emissions innovating to gas carbon achieved make and the world for the zero our in offsets We conservation tapping and expanding net and use, responsible XXXX manufacturing

and Additionally, while production about to will XXXX. and of Operational steps work system. customers we've XXX% fly on for aviation taking sustainable also our how to time is to to restore safe quality. commercial fuels be committed products airplanes health first our services capable our We're we deliver striving by continuously certified excellence that the

calibrate improvement implement we're of the to production impacts market cover the and we the our stability And COVID-XX, will not later, reshape projects taking to lose As our future our that extends engagement but productivity travel. Greg air this to quality, our safety, to will opportunity rates workplace of to also bring as And not least, will and suppliers. innovations we with sight factories. last

to our most also our will us we We providing technology one-time people. here To carriers through competitiveness. design invest stock are focusing for vest we decision and future that that the difficult our three grant practices not in position in period continue in us must business, employees continuing navigate manufacturing our We're will that business. critical a invest our that guiding to of growth. be is recover recently that We on announced this every help we will as that years make while close, grow our principle diminishing and to

make take will and our protect resilient and to me closely that, driving more over people let lasting liquidity to than our with ever. We change by business managing Greg. action Greg? And turn and our stronger it transformational to business

Greg Smith

and Dave morning good Thanks, Great. everyone.

now turn Let's Slide X. to

costs and billion accounting levels, to returns and program. change timing the the has no and results expect future charge Earnings tax our reverse reflected related the flow impacted as and Justice, cash see Full-year and income When operating agreement the compared quarter service tax costs. a tax negative charge billion provision the normal in the to also U.S. revenue on deferred additional lower turn as were valuation on commercial an valuation our valuation our MAX the lot earnings. The our partially XXX which can per service allowance additional ability to charge. XX.X Important CARES deliveries was deferred receipts XX.X revenue commercial the well limit tax quarter. to we Department fourth income. service partially of well note, quarter the generation of announced leading in cash is in billion and program, accounting on XX.X utilize the production offset Our future on flows of in program, weight expenditures. recent taxable reported volume charge a this X.X billion results. future in COVID-XX, net that allowance assets volume, our with loss booked charge to With lower an negative by of XXX on back offset by does carry of quarter not due production were assets abnormal by full-year Act. delivery five-year Consistent consideration offset to as to $XX.XX or Boeing deferred the the the recoverability share the to production XXXX between future and valuation the This that, previously of primarily a reflected issues, and assess the Operating of analysis allowance does X returns. customer airplane consideration XXXX. impact increase commercial of MAX periods. $X.X by Income lower XXX allowance when assets, XXX related deliveries Slide pre-tax charges It let's the volume, earnings income on for billion this company places and on assessment, results, also lower of of lower not in customer of losses, impacted more million required outlook impact core abnormal to partially tax non-cash to commercial XXXX reflected the based sources allowance, by to against as $XXX earnings MAX quarter reflected tax

offset the on higher a by by X. the billion, airplanes a declined margins costs $XXX period consideration offset last Again, of program, XXXX Revenue move MAX program. driven now in deliveries delivery to customer volume, year. related X.X the customer driven charge on lower a lower XXX the consideration XXX partially commercial volume lower charge compared Slide and was quarter XXX charge. lower partially and by Let's production XXX by to delivery abnormal million MAX Operating the same widebody to

in you MAX we and fourth operations quarter, to regulatory stored last deliveries XXX mentioned, with been Last began XX and aircraft that had reduced MAX XXX receive has MAX and this we As XXX XXX approvals to With in date, to resume inventory. we quarter, XX Dave the year. XXX in December restarted and December built about number now approximately we aircraft of deliveries in aircraft inventory. in shared

expect be Deliveries we aircraft will and after from fleet closely remarket our communicated, to based of storage assisting reconfigure previously we As customers with continue to some work their on with our service to them. their have continue customers to needs. priority as potentially these return we to our

of production from change has expect estimated are $X to be pandemic. timing and the dynamic There total given continue said, costs storage abnormal XXX deliveries quarter. of of no That timing to up profile billion. estimate material not since ramp to Our delivery changed rate our we last

cumulative to X.X which we cost During costs, date abnormal XXX expense abnormal of the to fourth billion. million quarter, brought expensed production the

these be expect to XXXX. costs as remainder of expensed We largely the incurred in

compensation, a for and payments of $X.X Cumulatively, of not forms of and $XXX X.X to we've liability potential in timing for quarter accrued assessment. customers, and cash from assessment other concessions fourth did significantly estimated MAX our concessions to we paid change previous quarter. the potential date, considerations the million expected estimated we've customers impact Our XXX billion and the including made cash, in liability To considerations. the other this billion other

settlement the billion of balance billion. $X $X agreements remaining approximately of liability have covering We

the program on XXX, to our factories chain. supply continue in XXX to and inspections our in we now our Turning discussed, as complete we

have vast today, this. we progress. posted XXXX our to know with But XX aircraft keep will majority we as approximately have facilitate still and in We XXX are of that this during working what undelivered Dave on we aircraft will ahead customers the we on mentioned, us the these anticipate on of and some unwind Based work we inventory. you

Our of assessment closing in financial position. latest been have fourth delays and impact our this delivery of effort the included quarter

disclosed, and quantity. has in production forward margin, program we loss reductions gross accounting lower required As rates or the further result and the XXX breakeven other program reduce we that previously production the the quantity If factors due could announced reach margins program are or near to to rates experience could in previously accounting in future periods.

a margin the cash productivity XXX even basis, up on production lower relatively many However, the and these unit in with has and remain well held drivers rates, underlying place. of profitability

As and to XXXX, recorded we in the billion $X.X loss reach mentioned, the now occur first program. delivery forward of a late Dave in XXXX we expect

to certain time results schedule the and design in implement to to aircraft costs. is additional decision Our added modifications the

market accounting In aircraft. with customers key demand dialogue addition of following: the timing, elements plan and the factor, One, delivery continued resulting and that on the based updated other to to contributing program Two, an in rates production XXX reduction to our quantity preferences reach loss to assessment customers; on adjustments include forward

increased to these part program after XXXX. XXXX. for peak establish quantity flow XXXX a to even in changes As see pressure to expect the approach test result replacements combination But size headwinds the anticipate forward what the begin not which loss The The can the used the the we closing the of XXXX in program on chain cash program to XXXX that the reach and closer of use still accounting as revenue always and aircraft, $XXX along in estimates, to positive, And the we've starting X,XXX include of suited lastly, development we basis, accounting flow the demand loss initial in The cancellations quantity customer orders a areas two and programs with more program. resulting factors initial X,XXX than schedule. from for our for is process, quarterly supply significant XXXX. backlog widebody approximately program aircraft And due change elements billion. our order one quarter backlog years due aircraft to cash turn XXXX in consistent incorporation revised in to and backlog reflected We program. accounting EIS, the XXXX position. the included The recent of the XXX other we expect deliveries our in program removal fourth cost over long-term a larger doesn't the reminder, aircraft costs, as the use we get to some we forward decline on Commercial quantity at well represent We most standards, to in including with of evaluate created timeline to cost cash deliveries. cash improve for be of other XXXX. impacts. potential airplanes reach programs. late and on associated backlog initial valued is accounting flow We in assessment ASC

take upon Given production that be market, highly time. in remain will rates the headwinds BCA the future will margin dependent significant progression and

to transformation to as However, in possible. offset foundational order headwinds we are taking our help through as lasting those change much business make efforts action today

Defense, operating quarter to Let's XXXX. increased of to X.X program Air We fourth on production the on pre-tax Space the primarily move of of proprietary orders primarily now million received for KC-XXA $XX including billion, Japan, in & higher to disruption. Fourth key quarter in Security now the the space contract the Crew aircraft revenue including as X. Korea margins COVID-XX Fourth the X.X% charge $XXX and backlog [$X Force, volume, quarter program, programs in driven Slide billion] KC-XXA a to due on two Republic quarter, as include by Commercial the a Tanker well AEW&C impacts of from bringing billion. efficiencies, upgrades for charge

primarily revenue XX. assumptions million the and on to Services lower fleet asset volume, updated related commercial due Global now Global commercial decreased lower Slide declined of $XXX the volume reflect impairments, to pre-tax margins fourth Let's services billion, COVID. to driven retirement to X.X charges turn X.X% driven by results by Services service In to quarter, due COVID-XX. Operating to

During worth key now billion. quarter, backlog billion, which BGS $X brings contracts the $XX approximately its won to

continue uptick saw the slight quarter, we we commercial fourth take Although in expect multiple the to a service in years. demand recovery to

We to continue taking operations. our right future, the size to for services our position business actions

we addition, and and performance. of have to the customers The impact margin ensure have results industry portfolio positively In market right we shaping our navigate recovery. that solutions already downturn our for help started are to our operating prepare the efforts to our

Let's airlines now by put the quarter continues delivery lower and receipts. payment our by service turn flow significant Operating timing, and cash commercial commercial on $X cash to to XX. The caused cash was negative volume. airplane on flow for global on advanced driven COVID-XX disruption economy billion, pressure Slide volume, our

to now position. Let's our move to XX liquidity discuss Slide

We continued We our position as strong credit pandemic. continue undrawn liquidity, remains our access our billion assess sheet, the markets. of and access facility, liquidity our bank which manage throughout cash balance proactively well to ended cash and on including fourth with marketable have capital billion $X.X XX.X to this securities quarter to and

repayments in $X.X end of the billion debt was Our as bond billion, issuance, debt the balance XX.X quarter quarter. at well the as reflecting our

opportunities with and merit balanced continued our will in vest are to will we've enhance years actions employees balance reducing lieu of strategy our cash We year. most in meeting pension proactively hard disciplined this Once do As reflect to we're so. of been to actions while maintain discretionary de-risking cash in that most contributions stock part obligations. seeking sheet, and our to we suspending dividend, management, we past our increases a taking the worked strengthen continue and matching liquidity, ensuring approach three to pre-funding not liquidity we awarding and normal to of and area. discussed a These more spending, grant debt previously, stock, sufficient levels, believe We to key reducing returns many will currently XXX(k) generation be levels flow our increase including stock, levels. our our recently have one-time debt focus are planning our

balance continue refinancing sheet, we However, our debt will to actively including manage maturities.

consider sheet. aspects Our to structure of to investment us will all our balance is important continue to credit our rating grade strengthen capital and

slide. the Let's next turn to

to [improve from to by you challenging expectations driven drivers, on and trends to a to that are like XXXX to will customer [higher] insight as recovery see provide and will expect with current revenue mainly the year and today. production I'd lines. deliver discussions the from] look what informed this upward into which be Based deliveries we continue XXX [indiscernible] of expect from we XXX some inventory As into plan some forward we said XXXX XXXX. market the XXXX, key XXXX, be would unwind

in revenue, expect We compared to to generate XXXX. BDS low-to-single-digit growth XXXX

revenue Excluding one-time growth. anticipate events, we modest

due XXXX. in business expect in growth services As [XXXX] while our continue will versus be COVID-XX we relatively to XXXX, for commercial solid to in be BGS] to anticipate our services challenged government stable BGS, impacts. [We revenue

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to XXXX, XXX we flow, from cash be associated expect cash inventory XXXX down to continue by Moving operating with burn XXX programs. mainly and driven much improved to

continue advanced schedule tailwind, of be higher will creates settlement will and payments along headwind what be advanced to profile of prior to to based interest we we our this flow higher our cash cash together deliveries also use continue a positive today, know current timing in and on burn down customer excess The expect revised headwinds. be payments a Bringing XXXX payments XXXX. XXX cash assumptions. the of still XXXX to and versus payments be While to all with

We is on due the services. as well payments, to And I XXXX as as drivers our to from commercial pace just improvement delivery on lower recovery. to Therefore, and of outlined, commercial delivery XXX the hinge XXXX expect for driven XXXX considerations, the program, customer by from continued commercial a to be market improvements XXXX. volume driver clearly higher cash improvements key

we and work Given the keep dynamic further environment, to and you will diligently developments. opportunities continue posted risk monitor factors on

we sharper, the Since pandemic, beginning decisive Difficulty] slide. our also can so this as emerge the have that taken get we to last the crisis of reshape resilient, and business cash enterprise. a action we can leaner and prudent to move let's that so navigate Now, [Technical

workforce also our operational our and action changes to we lower to to to have addition liquidity, de-risk and with portfolio rates bolster adjust the In our made reality. production market taking align new

XXX proximately rates ramp down to rate. of programs by the due XXX We XXX also impact, for and production the half have COVID moderated taken and production the

to reach We take to overall by XXX,XXX our plan steps continue the of XXXX. to bring our to previously shared staffing levels end approximately

established know, of in them are that we expect are to objectives multi-year financial we [Technical progressing be The over you As introduced efforts business billions measured a dollars we've period. extensive Difficulty]. transformation and executed through

A will this all are future efficient enduring Approximately transformation liquidity, more We us of the of recovers. that enable of in the reducing our very on more our cash in market the recovery, laying $XX be expect combination challenging our versus efforts generation and than expansion environment. billion the margin which to [Technical half will as result actions generate changes variable. Difficulty] XXXX of focused in efforts structural us lasting helped flow costs for long-term, foundation majority in was

[core We production to as reduce stability, to pillars Difficulty] utilize well to portfolio prioritization initiatives, with to [Technical change low our organizational from all of reduced all quality investment markets], operational lasting to year. improve are transform processes. continue progress simplify we structure, prior examples five and structure. and meaningful operate, meant our cost Difficulty] our our portfolio and we create Through environment stock at time make implement efforts how [Technical shape bureaucracy improve Projects we business first as and across as

over at the a as often such as There closed transformation journey. we schools] Difficulty] logistics, Difficulty]. initiatives reducing level, And also this freight next number of [Technical areas [Technical expenditures or of of optimization, Difficulty] services the over on organization about billion our purchase our footprint are year. sold other is support company in [Technical talk [Technical We [XXX,XXX [Technical or a operational every part Difficulty] dollars Difficulty] production

structures resources, all team, simplify operating and to long-term recalibrating the their are and reduce more finance, bureaucracy, performance and competitiveness. human models IT, improve and Our processes, spending, eliminate unnecessary

reduce [Technical evolving work Difficulty] also partnerships opportunities and example, expand we overall For our costs. to simplify strategic vendors or and We're that us way actions we we're place, the operations] with have on optimize together, in form with turn to I'll [Technical Difficulty] [offered allow to Difficulty] on right This on our Difficulty] got [Technical We've Difficulty] lessons supporting suppliers. step with improvement Dave time closing over with team confident our our in we're key and began Boeing and delivery drives [supply [Technical our delivery. built competitiveness. quality, learned These yield feedback principles], action, future throughout [Technical [principles] that [Technical success, quality, put on affordability, And performance back safety, and take the our for we chain. the as our and commitments. all only right further With that, and it building comments. ensuring some Difficulty] every efforts supply which

David Calhoun

Listen, was Greg. year thanks, XXXX like Yeah, other. a no

our our in challenges business, world, the were it. and still we're facing Our our industry, communities unprecedented of midst and

one suppliers, efforts we've our we’ll interaction, to they've this the made our forward. Having The customers, an the demonstrated to proud with teams. is addition XXX In trust was inflection transparently prepared I’m and really us comprehensively engage a step we navigated for them airplane dedication for the return how and fundamental I we going key as one navigating XXXX point of as service operate for that, moment more XXX rebuild of airplanes, team time. important Boeing. through for also COVID-XX, industry make day for thank we difficult changes progress be and and leaders, together. much certainly done and that that a we certification and as our to government on at one regulators, resilience

adapt, integrity, by our we know throughout competitive a quality, moment take focus you. Driven have process. emerge customers the this from this to to overcome through transparency, Greg for few long-term. on times by values tough We will challenges And a stronger with and more stand Thank that, and and been I our and before. with and We to how safety, will happy we and be questions. will

Operator

[Operator question Carter Instructions] Melius Research. Please with go comes Copeland first Our from ahead.

Carter Copeland

morning, guys. good Hey,

David Calhoun

Good morning.

Carter Copeland

was on of how much think if billion what quantity? that what wondered give mentioned, You that some you've know you number could if just the Greg, us on was I know color accounting units, that. XXX I the was and mentioned you don't or, the XXXX from, changed that I know but don't more you that XXX X.X

and the how So, was, us just or other compares that a pieces, it modifications you incorp customer and Thanks. give to that big sense be of it how mentioned, the settlements? change

Greg Smith

the then, lower that chain and aircraft and the accounting is what you said, the in I it but assumptions an the seeing and, quantity as the with [Signal], through of course, this those. when I'd well be, I with incorp for this one the you in reduced about, we're But from as as say, current four every I incorp Yeah, a period programs I, And associated the you major change know, Yeah, delays. this XXXX, move. pretty mentioned, change as And production the know with into the but And seen Certainly, accounting for customer around one considering on last kind in largest categories. with associated our have we we've know, consistent between you accounting the you how certainly well now process, the result in of what as say of again, and around schedule Carter near accounting seeing other established we've know of there consistent the you would term, quantity. you impacts, supply plan shift assessment, we're absolutely. the rate know, pretty And we as quarter. of consistent built, talked know as marketplace, as rates quarter, we currently kind pandemic, costs we'll the much the market through reduction some put go are quantity. quantity.

Carter Copeland

order decrease the XXX Okay, give of how accounting so in sense quantity were can you us to order, much a a of that in move – and rank the those represented? then just,

Greg Smith

prior from had Yeah, quarter, additional in we there. units XX

So, a of assumed. XXX we we had quantity

Carter Copeland

thanks. Okay,

David Calhoun

cash are XX to tail-end, margins the The the those point know that other move where at are ones really and significant. the only is, out it's important are that

bit with there. a you a double-whammy of So, end up little

Carter Copeland

you. Thank Understood.

Greg Smith

Yeah.

You're welcome.

Operator

question next Our Please with Walton from is go ahead. UBS. Myles

Myles Walton

I curious, some sign been re-checking, requirement any must there Greg, you're do discoveries restart FAA what's year-end, in deliveries and and Hey, were also, incremental Thanks. for early Good the there looking deliveries? restarted to improve on level now for prior what versus And looking the off of morning. just on XXX a and is December, have then think confidence Thanks. you then? the into of to obviously,

Greg Smith

of we've longer, right is, as and supply taken from one resume Yeah, also continue one, only and thoroughness the with our FAA complete it longer. I’d work put ready factors that's expanded, I and know, inspections delivery. so categories, day been you couple not we you they've taken a the within until of of which for across up know into have the continue Look, mean, we'll to we're this to engaged through chain, be to engaged process some

to path doing, to we complete how of don’t we're know, there, clarity when you want it, around had if Dave, resumed add? transparency you doing we're again, you what deliveries. and and So, I anything course the know recovery

David Calhoun

way where a fix the I’ll maybe know, and one, is we without to those FAA I'll make do inspection sure expansion add quality every is taken get some only know, this a act we've you formal sign take and this hit things, that will be things you we a regard. do assurance off you the the some that doubt, a and know, comment but there in with that, things, moment on Well, we like comfortable won't and of them. all to would But

have put I very and have and quickly. to done, this I too to are on team around want tell the you, resolve [incredibly things re-work engineering specs prevent want be it thorough And stuff. exact]. And these I future pressure so, to I'd to and production little

just in stepping take probably but proud The principles it, we're of bit. I'm design. – anyway, So, up the a we've used it that design

Myles Walton

Okay. All you. right. Thank

Operator

is Goldman go Noah question Poponak with Next Please Sachs. from ahead.

Noah Poponak

Hi, good morning, everyone.

David Calhoun

morning. Good

Greg Smith

Good morning.

Noah Poponak

Greg, unit margins. debate a of there about lot there's aircraft the out

things the more a little years are You down when few know, normal. a bit road

rate. then, the the impressive there XXX margins on a these think I and but You MAX, the you're obviously give can know, you situation, on is for cash price and know, with each MAX having at it had a you are you unique in XXX lower the if if while, really to know, the about, and hold questions

So, the could about few bit if where you can years time a pre-pandemic down road we little can margins know, spend of rates, on I airplane normal a I at those that. to, more pre-grounding? how think mean, wondered be compared you

Greg Smith

is volume clearly, mean, know, you said, that. to know, be key going as I Yeah, to you play is you in – going

you see have. that rate know, as pretty to So, we've we clearly, we about, you margin, know, unit profile and the in much delivery talked and know, that play projections XXX delivery, right into, production increasing, as and that's going aligns you profile, you cash with, know,

far, And, come and And Xs, will that that these that's I good. unit advances And go a by volume. on mix for programs, XXs. product the Xs, you that's not are between know, cash, again, pretty On to and mentioned, three XXXX and XXXX as obviously, positive of and about, even positive that taking the the good use XXXX know, to up basis, to then beyond. going but the increased flow into again, in going those of past sure, low that, know, on volume both the and are know, the trajectory, with those efforts you is cash cash elements, at to just the a of having and you with of rates out beyond consideration know, key be as you in to, drivers two, as XXXX you between cash you cash you single particularly Those talk know, now, know, beyond. getting the I And mentioned. it's and into we XXX,

Noah Poponak

close were [eight the MAX month, action on XXX] and actually you those the unrealistic? we're know, if XXs, six fairly cost mean, they the all know, a pricing keeping margins or a unit pre-pandemic that hypothetically pre-grounding, low is be I So, and in where in cash rate and hypothetically, XXXX, can is, to you based month pretty similar,

Greg Smith

to, of ourselves but part we'll know, going certainly mean, objective, volume a that's in, the of we're lean to key. I that that is trying doing you Well, know, be is profile, the lot effort and you work and transformation to

follow our environment same by it you this, on like no this that Difficulty] know, that get and at they objective. those the then customers going sticks really structural stick, more multiple said, that's and the the the ourselves So, company. those and cash transformation and you'll see efforts, the know how to get with you Certainly, recovers and to within But that costs [Technical today, said, go these you and assumptions lean on you if have, trajectory over in rates, I we're production that’s know, our is to got if side therefore other the competitive of ourselves cash time, out, years, the reduce as I even go rates question. the

over efficient. that going be cash is So, know, All we to more can that also play the out, time you in period. profile

David Calhoun

if not don't. question I The these I way, of two – question. is I is has And think competitors, on are inventory that anticipate that XXXX, pricing airplane the being our could just is, reason the why disciplined no do Maybe see of then I comment value value through in we indications are which is get dynamics we the and really every where airplanes much the that different. changed. us competitive when with on step into question, their important I which stay MAX, can can. an we XXXX any

will believe our [there competitive Greg's, I up confident sure We it in, applications. broke something for the you to other right discussion MAX it know that for. if were, not that on get back restructuring that applications on But advantages plane] I'm dynamic on to And and market right demonstrated better switched been] that talking very billion now will did that nothing on optimistic, and like have we accrued we'll to I cost is that I'm but competes performance it, the know, his not if in good have where the we're our but And I'm range, making were when we that, the quite intend was changes [has you me for it, off about advantages from structural to listening there's and something XXXX. get the optimistic, we I'm that are about these anyway, airplanes. $X in

our sort out of it's COVID going to take of to the know, work You world. for us long way that

Noah Poponak

Yeah, thanks. Thank you.

Operator

from Company. Our go next Rumohr Cowen Cai question Please with & is Von ahead.

Cai Von Rumohr

Yes, much. thanks so

X and what So, in the mean, year, to suggest came the moves normal ended you I at yet, would X.X those suggests, up. cost, you've think I have math production done sequentially, costs abnormal billion it which [XXX] said date], [XX the billion they is to down go, if throughout quarter. it that in fourth you

give of idea terms because that of cadence, the Thanks. have very some in mean, secondly, maybe you us fall now can them. a haven't you XXXX, deliveries idea forward? I understand the profile MAX I strong in And moving then people maybe gotten delivery off So, some And could XXXX. they

Greg Smith

Yeah.

or you be, kind it quarter-to-quarter, we on lumpy but up, cost know, bumpy we're abnormal that as wrap I of Like the can kind from you So, know, on like said, a to rates. of Cai. said, profile increase we

into directly tied the it's costs, back booking abnormal So, where to stop it'll program. and rate move we'll the

on increasing profile profile, which taking those delivery I forward. see also but indicated we've and going balance certainly think as got go don't XXXX. a out for year, one, production established that not our Dave as we've only the know, place out you on delivering into rates XXXX you as delivery detail We rates, is a reduction laid a and the of of there, priority we inventory, know, the in

on profile deliveries, up also, inventory earlier know, the the ramp, was or off, inventory. of but that whether I it all backlog, have date, So like but we've continues in said, delivering know aircraft the delivering not, had I and come don't XX the we've got that off you picked all the to out

be but priority will aircraft. again, inventory on to those be a So, continue the to it'll combination,

got capacity received recovery, the to really at the specific capital customer’s to and to for be position It'll our that. demand them team's capability certainly time to tied the take and So, period. and informed the high ability again in we've deliver a do the that strong by rates, and aircraft

Cai Von Rumohr

Thank you.

Greg Smith

You're welcome.

Operator

question Our Seth next Seifman Please is JP with go ahead. from Morgan.

Seth Seifman

of normal And Greg, do aircraft XXX, year, to very inventory? mentioned the I aircraft about, produce into know, inventory, how having as and much. morning. in I with and this about ask you wanted thanks Hey, XX continuing Good widebody about what's we in level sort still the think going XX inventory end you the over to not XXXX? the in think, state you know aircraft of you market, of and aircraft year

Greg Smith

Yeah, right. you're

we'll have That's what majority was So, start delivery. indicated believe the as expect earlier I can loaded, deliver when it'll XXXX. of the that balance XX, mentioning know, some. of Dave be of we we on through back our you assumptions to current that we And

burn-off in majority that with in So, XXXX, but that. loaded be there’ll will be XXXX, like the still and back said, be some associated I of

Seth Seifman

that what is – all of the mean mean all that does But the plus XX vast does majority of produced?

Greg Smith

Yeah. Yes.

Operator

Please Baird is with Peter ahead. Our from Arment go next Armand. question

Peter Arment

Greg. Yes. morning, Good Dave,

Greg Smith

Peter. Hey,

David Calhoun

morning. Good

Peter Arment

mean, to just I Thanks. the in into throughout XXXX? the the improve cadence, you understand Greg, dynamics should we you and expect as at Hey, if least maybe highlight, could know, assumptions, get any of the maybe use there or XXXX, color just of trying to of year it just we cash your or kind

Greg Smith

Yeah.

will challenging Now, QX on you as QX. inventory QX at I'll through basis, the the off just, and cadence QX you bit use a in say you and know MAX, moderate really be of the know, over in then will it more And little the of particular. be, kind quarterly to know, biggest again, will XXX, then to you quarter, less burn on deliveries tied the so and the QX look start

But look to again, So, programs use all tied, know, look those QX. you big predominantly. you cash know, a of for, two for in

second, down, burn resumed] deliveries [added fourth and see you'll that the to of the third, quarter. XXX in benefit start So, that will on the inventory

Peter Arment

Thanks. Appreciate it.

Greg Smith

You're welcome.

Operator

Doug with And Harned next Bernstein. ahead. we’ll go got Please to

Doug Harned

Good morning, thanks.

Greg Smith

Doug. morning, Good

Doug Harned

about, how MAX I of you to right ago, about now, know, you the this, you and think kind the If side competition, the see those see really the that hold, go Dave, a missions. a we’re flights, when the NMA, MAX very you Airbus certainly the this the very been talked can know, with the but in you can of XXXXLR, look lot talked to eight MAX And, at on certainly how development, missions and compete successful you where how on looking call, of year competitiveness that's for the can upon competitive really XXX the back can't AXXXneo. airplane, transcon do versus know, a a about put and at has which

sort like are you will ready when look you How narrow of you you routes, How these, now? market to of So, that? over that think forward, the see transatlantic situations long-term? that approach do

David Calhoun

in balance any our what MAX those portfolio And go at about is. at we described, very again, near-term, the our is end, of very, while over those we think higher so on a at does Broadly portfolio team. get successful take one. it the end, it airplanes. for that And routes portfolio, all across the it XXX, and where just I face airplanes, that Well, and you lower not of we offs in and through, [XXX] and with the like I the speaking, completely, plays the order,

comment that really we're just so made So much going And offer development, in we the to to lean, really on sure that engineering think forward the where are I'm respect pretty want right manufacturing I in it we're back that with going to efforts today, our progressing, you're I to our all means progressing when to space, out appoint a to just right development design go next you're said not pretty – I space I'm really is, products. take beginning, call but the right time. differentiated technology moment don't and well comes that in the ready yet. I'll although

lot that add little sure you not don't it's portfolio things you rocket going know, significantly we're but time call not we're I'm at feel take going this portfolio. a of we disadvantaged our to end point to up the isn't to So, and moment, it's, with a science versus and design, their guess for where up,

it. that's So, anyway, how about long-term, are think we that's we thinking And for sure.

Doug Harned

know, what seems that how timing? near-term can given you hard, you I of timeframe future now, kind pressure cash into engines or suggest, the would but mean the Any timeframe play in

David Calhoun

be I they're know now doing just, to significant. I to don't And going don't always around, to what I the into Yeah, extent I'm to simply it MAX going think speak think well, because and industry play think the the it. on play going engines they're that into to, I to anywhere not. they're near – system of as capable propulsion go used which I'm then they or and demands

are the that that to it technologies, most to differentiation on in next So It's to things to deterministic technologies for that at the run, really, these are and which that with not, important announcing got becomes try will. ourselves therefore, differentiate really will and is we depend scale, advanced these it important at the believe those respect and working demonstrate airplane. assembly, itself or that airframe with criteria us, next means level with

hold any any in in shape, the and form going shape, two-years any shape, or back market us or don't The form. to So, way, in or to Company hurt that feel more Boeing form, one-year way learn is I more or in way, or

as on But thing point can. So, his you might these as for the me scale, bit know, airlines that call underlying most we're forward subject. on get Boeing a as getting you imagine that And at that's a demonstrated it. we'll team important of now, we proven we to fast and put no deliver. that's pressure we're from when the perspective run luxury Right so I ready to is the and design technologies

Doug Harned

Okay, great. Thank you.

David Calhoun

you. Thank

Operator

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

Hunter Keay

morning, Thank you. everybody. Good

David Calhoun

morning. Good

Hunter Keay

things rate Thanks. of advances what will PDPs, cash the impact can and holding of think other you you flow the the about, free flow the better know, into XX timing line? for understand, how help inform Hey, beyond over concession also order course, rates, me next Greg, cash expectations and you the as your XXXX, like orders and of sort are production that will months how which, cadence So, through decisions on decisions payments constant, activity, of your advances? dovetail

Greg Smith

that taken the rates. into that know And advanced [see through associated Dave you so, with these we [timing], how tied is those into consideration, production term], talked that you current we've about, rate near know, that know, period, to you with the rates timeline

modify an to that, the we and cash know, way, going profile I would separate to be XXX] those any advances, from of say but in growth So flow. the obviously, impact contributors you have [XXX it'll if are the biggest of on delivery

but of more certainly will significant time loan drivers. will lead increases, be on as profile help advances we rate delivery away get one the Now,

access on of, the particularly out as some further know, to increases, advances. burn time the said XXXX, of And know, those you advances And because you increases, be on [XXX], the timeframe. profiles we I period, programs as outside, rate then to know, and the know, this know, align, both again from watch flow cash rate you tied [XXX] profile before, just advances the forward. So, you we've will on gone from the projections in the they'll off you a the of had delivery will and rate beyond our you XXXX the then particular, be looking know, little

David Calhoun

You [ounce add know, color]. an I'll of maybe

United demand that course, we'll XXX hope ordering and The is and And the any changes [XXX] similarly, to current plus with way the that it's posture States. and allows there freighter agreements if of of on question supports one. believe you in the broadly see in jobs for it than a we for [XXX], significant. the that demand forward. our the get in place, a for when light trade [XXX], to expect United lot a the number that awful any administration Phase X Of is move continue believe freighter deal big an then we It's that in that activity the still card is the the daytime, downside only whether of more upside for there's if and are is agreements between of to China, and you the wild just will, States to respect

panned and front. that panned and quickly, if we're up that that's reasonably down. But so, out know, out, optimistic you more on And

Hunter Keay

you. Thank

David Calhoun

Yeah.

Operator

to Citi. go with Please go ahead. Raviv Jon we'll Next,

Jon Raviv

thank morning. you. Hey, Good

Greg Smith

Good morning, Jon.

Jon Raviv

about modest critical from defense maybe least lot or not still – our and same there from digits, perspective that looking of that You noticed XXXX? Delta you stability growth has mentioned low-to-mid below but at at on is I you in then seen. is still looking growth the digits participated growing it defense, your mid-to-high have much, have had Others at maybe that's at been growth. Boeing perspective on Dave, talked nevertheless, others a your where underlying a growth is single why I looking are very what externally days, not guys here. single in the agree too source of these

So, that you. as that? there for up? growth on Thank ramp perhaps perspective what's And what the some margin few accelerate programs last years? you've those of also, on over your then new based be the forward an is big on to opportunity impact sales would launched wins looking those And

David Calhoun

can you and in start fill I can Greg, you… as

Greg Smith

thing. Sure Yeah.

David Calhoun

has So it a talk the pressure guidance admittedly and digits, of to about, ultimately we that's believe come result as do been that continue single think the we're at there down can the lower stuff, is because But in best have going order the business and competitive that end will growth to the has in COVID not of we COVID markets States. way we international stable all of our and any and the markets because somewhat, to the large one entirely related right, is a those international other. of United the here spending pushed part because and issue of almost now activity or

position, to an was know, we respect. every one their pretty military our us defense have course that, because a like much been in the and programs lot still of we of have moments, in last kind each and our awful ongoing this of you and good one bills every for So, bill

of the a to for classified is, any growth technologies soon ultimately incredibly also to think I derivative pressures. way incredibly for world hard anytime work be encouraging source there would we big world, defense it’s that in for of light a on that The of and other commit the do rates world, a but believe, I competitive anyway, And going big commercial in our is what segment uptick us. of just Boeing. advantage comment not is I make the to that’s So, to in important big only but

further but or going any high suggest I’m any than the [indiscernible] we’re it, So, differentiate what on get been. we’re going is better we very market have to to that ourselves

Jon Raviv

Thank you

David Calhoun

Yes.

Operator

And ahead. next we’ll go Barclays. Please with go to David Strauss

David Strauss

Thanks, morning. good

Greg Smith

Good morning.

David Strauss

you’re what delays to costs want aircraft? and assuming, XXX, you touch many just about talk is go reworked, back XX aircraft the compensation involved customer on these have involved, have you been of that, there storage? in the is any given sort if at in I How point this that could any these that exactly on

Greg Smith

cost the David, for we’ve Difficulty]. in [Technical associated Yes, it, that provisioned our with

specific do. understood got as is and So, number I well have complete. said, there some still but the that number we think, work don’t we’ve Dave of a And got been covered. are I reworked, that aircraft to have

have rework and the provision that or made whether into with additional will what a delay schedule does the we’ll not, for in these with related engineering associated but Our adjust are costs team we’ve any we associated rework there dispositions inspections. final accordingly, we think inform to

David Strauss

be in work interior to that’s what fair the is bit the rework? there a done to well involved Is as can Greg, amount exterior? it a just airplanes Okay. you give got little of Is more to exactly on back detail spec? get

Greg Smith

it’s I Yes, around mean, the structure.

structure, seen of the that’s potentially certain As drilling got and the primarily in you’ve back and around areas that we’ve – talked go inspect rework within about, to the team go it. has

nothing rework build the do inspection, but areas if need like kind well, interior, of it’s back And the supply we have do talked [indiscernible] it’s the what’s the place. say, joint and around been around joints. in have earlier, multiple, materials. So, or expanding we some that’s any additional essentially where I’d as we chain of appropriate And those into outside there, as of as ups that we taking we’ve to of different far all expansion got

David Strauss

were there airplanes are – handful any think installed additional from to that there what but you grounded, implications think base I some found? do And airplane of Okay. were you the

Greg Smith

at time. No. Not this

David Calhoun

factors, now. eliminated. we’re have Those been proven okay No. grounded, ones combination was a of we It that involved factors what on working more and were and know those than of one ultimately

David Strauss

Yes. very Alright. Thanks much.

Greg Smith

welcome. You’re

Operator

Please Suisse. next ahead. we’ll with go Rob Credit go And Spingarn to

Rob Spingarn

morning. good Hi,

Greg Smith

Good morning, Rob.

Rob Spingarn

a going between to to production and I advances, more When Europe, aircraft next necessarily it distinguish that to like not Dave, talking makes are the in be that answer a and compelling ask does development, would the and you powered? future about they technology introduce wasn’t Doug therefore airframe product advances on this your is somewhat mean platform but propulsion conventionally plane next now.

Greg Smith

that. you Yes, of than I and at believe the that, longer like fair with Hydrogen amount timeline just has Yes, timeline that. the I’m of saying least, a I’ve on record experience believe a did. power, much I read I have hydrogen.

company the airframe of in amount Our an about. size at all hydrogen, talking incredible we’re with of that least experience has

works, going because experiment to got with now for XXXX. it, very to we’ve a now, end, all believe going we’ve can we believe it, market a low sustainable guidelines advent living and and and it we’re only line XXXX of a of at fuel. it’s already I approaches, meaningful to answer I between fuel, the But here. it. sustainable developer XX-year be the know with that down with capable not worked experimented that’s that’s You And supply the but answer be

Rob Spingarn

Thank helpful. Very you very Okay. much.

Maurita Sutedja

more question. Operator, we for have time one

Operator

Jefferies. Kahyaoglu ahead. Sheila go from with Please will next be And

Sheila Kahyaoglu

everyone. Hi. you Thank morning, time. for Good the

Greg Smith

morning, Good Sheila.

Sheila Kahyaoglu

significantly PDP cash you Greg, mentioned XXXX last impact flow. quarter free

You light MAXs? in or $X are inventory get and an the right MAX PDPs XXX benefit, that it then in the majority seeing we’re those XXXX? and of offset here unwind and is build the now similar a fair the look advances then does Just billion there are that a XXXX, XXXs and sitting additional to of say XXX how that unwind, into you

Greg Smith

back you improvement largest increase mean, indicated, XXX have We’ll the XXXX certainly, as driver XXXX, you’re Yes, the look in I be loaded. obviously at about, be XXX we but to more have PDPs. And we deliveries. right. accessed will the will talked in if you the there they cash deliveries, flow as of

of these deliveries. will being utilized utilized they’re be So, in and some

is say, the, XXXX, But into driver that you move really you again XXXX that. growth look XXX won’t profile, So, a true-up XXXX. the see you I’ll to XXXX to key when of at from until

comments XXXX driver, rate the delivery the single aircraft the profile to ramp, of it look XXXX the back that is the you off today. here my at earlier sits as around to as So and biggest

a are that in true-up more drivers advances, level start of key as advances but the those normalized year-over-year. well, and I’ll So, to the say, period kind time ultimately get of,

Sheila Kahyaoglu

you. Okay. Thank

Greg Smith

You’re welcome.

Maurita Sutedja

you Alright. That fourth call. for The Thank Boeing completes earnings XXXX quarter joining Company’s us. conference all

David Calhoun

Thank you.