“In Aerospace, we expect sales to be about $12.3 billion with a 13.2% margin.”

In context

“llion, bringing interest expense for the first nine months of the year to $248 million, down from $265 million for the same period in 2023. Finally, the tax rate in the quarter was 16.5%, bringing the rate for the first nine months to 17%. The rate was slightly lower than expected, principally due to increased U.S. and foreign tax credits and benefits and other timing items. As a result, for the year, we believe our full year tax rate will be closer to 17%. Now let me turn it back over to Phebe for some final remarks. Phebe N. Novakovic: Thanks, Kim. In light of the things I have just discussed, let me give you some clarity for the remainder of the year. The figures I am about to give you are all compared to our July update, which will be posted along with today's guidance on our website. In Aerospace, we expect sales to be about $12.3 billion with a 13.2% margin. We are expecting 150 versus 160 deliveries with 10 of the deliveries slipping into next year. This will, of course, benefit next year. With respect to the defense businesses, Combat Systems and Technology remain unchanged from July. Marine Systems revenue should be about $13.9 billion with margins of 6.9% for all the reasons I've previously noted. On a company-wide basis, we see annual revenue of around $48 billion and margins of around 10.3%. All up, that indicates EPS guidance of approximately $14 per share, about $0.45 below our previous expectations. That concludes my remarks, and we will be happy to take your questions. Nicole Shelton: Thank you, Phebe. As a reminder we ask participants to ask one question and one follow-up so that everyone has a chance to participate. Operator, coul”