CLAIM #9008 · The Boeing Company (BA) · 2023Q1 earnings call · Apr 25, 2023 · due Oct 31, 2023
“In the near term, getting back to production levels that are normal will be months.”
Brian West · CFO
In context
“upply chain is relatively consistent, is that at least what you're working towards? Brian West: Yes. Let's start with that back end. So we will have a plan to get to 38. In terms of subsequent ramps to higher numbers, let's let that take care of itself. Let's focus on getting to 38. And we still believe that 50 is the number in '25, '26. And in terms of the near term, so in terms of what's in front of us, we know barrel by barrel in Spirit's factory and obviously, we know everyone in our factory in terms of what's got to get done. If the unit is not too far into the production -- our production cycle, the time to take to repair one of these, it's days. As you have the vertical fin on an airplane, obviously, it's more complicated, then it takes more time. But we will sort our way out. In the near term, getting back to production levels that are normal will be months. In terms of the inventory that we've described, the 225 finished goods inventory, 75% of those are going to have to have this fix. The good news is that this will not take us off our path to liquidate that inventory in the 37 of 225 by the -- largely by the time we get out of 2025. It's going to cost a little bit more. We provided for that -- 2024 rather, yes, liquidated by 2024. It will take a little bit more cost, but we factored that into our closing position in the first quarter. So all in all, we think we know what's in front of us and working closely with Spirit. And as we move our way out of the short-term recovery, then we get back to an area we can start to get to the 38. And I think that the -- for us, the biggest thing is that, one, we're calling it out; and two, we have no”
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SEC filings for BA ↗ · Claim quote is verbatim from the 2023Q1 earnings call.