CLAIM #8951 · The Boeing Company (BA) · 2022Q4 earnings call · Jan 25, 2023 · due Dec 31, 2023
“It's going to take us a little bit longer than originally expected, which is why we are going to shift out, going to five per month a bit later in the year but we still see 70 to 80 in the cards, and so far so good.”
Brian West · CFO
In context
“it month to month and until we get to that high confidence moment, we're going to hold our production rate steady. And Brian, you're up to date on the 87 discussion. Brian West: Yes. So on the 87, so the fourth quarter was our first real full quarter in a while of being able to deliver airplanes, both still at a low rate and also from an inventory it feels pretty good. And as we go into 2023, remember, the scope of work is pretty clear what we have to do in terms of reworking the inventoried airplanes. But remember, our suppliers have a part of that responsibility in their scope. So, bringing the suppliers - the big suppliers along to make sure that they are conforming and they've got all the protocols in place to get that done on their end is something that we're working our way through. It's going to take us a little bit longer than originally expected, which is why we are going to shift out, going to five per month a bit later in the year but we still see 70 to 80 in the cards, and so far so good. What you'll likely see is some good liquidation of the inventory as we go through the year and then obviously ramp up the factory as we get deeper into the year. But net-net, the 70 to 80 we still feel good about. Operator: Next question is from Myles Walton with Wolfe Research. Please go ahead. Myles Walton: Thanks. Good morning. Just wanted to clarify a couple of things. One, Brian, I think you mentioned $600 million higher abnormal cost on the 787. Is that cash? Is that absorbed now in the '23 unchanged free cash flow guidance? And then also for defense, if you can just touch on your margin profitability expectation and rough magnitude for 2023? Thanks. Brian West: Sure. So, in terms of the first question, the 787 abnormal, there is no cash impact. Part of that is just because part of”
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SEC filings for BA ↗ · Claim quote is verbatim from the 2022Q4 earnings call.