Boeing will be holding its 3rd quarter earnings conference call at 10:30 AM ET. It is expected that the company will provide an initial assessment of the impact of the IAM strike, as well as its effect on the 787 program.
Boeing Posts Lower Third-Quarter Results on Reduced Commercial DeliveriesTranscript below the fold.
- Third-quarter revenues declined to $15.3 billion from $16.5 billion as labor strike and supplier production problems pushed airplane deliveries out of the quarter
- EPS declined to $0.96 per share, reduced by an estimated $0.60 on the lower deliveries and by $0.08 due to tax adjustments
- Backlog grew to a record $349 billion as near-term demand remains strong
- Updated financial guidance to be provided after strike concludes
The material below comes from the website http://www.twitter.com/flightblogger
Call concluded, thanks for listening. about 2 hours ago from TweetDeck
Q Bloomberg: Order threshold for 747-8i to go ahead. A: McNerney: Yes. Frustrated by cost, doesn't change our mind. about 2 hours ago from TweetDeck
Q SeaTimes: Have you talked to Buffenbarger - what's fueling optimism? A: "There have been some informal discussion" indicate good headset. about 2 hours ago from TweetDeck
Q SeaPI: When next AP comes around, will labor be a factor for where to build? A: McNerney: IAM "fine workers" they can compete with anyone. about 2 hours ago from TweetDeck
Q: Are you ready to get in and negotiate with Buffenbarger (IAM nat'l prez)? A: "I am open to be a constructive force" in these negotiations about 2 hours ago from TweetDeck
McNerney: I think both sides are approaching new negotiations "with a constructive head set." Scott Carson and Kight will be leading neg. about 2 hours ago from TweetDeck
Q WSJ: How do you get past the fact that each side is dug in? Is there a compromise possible? McNerney: Yes, I think there is a way fwd. about 2 hours ago from TweetDeck
Analysts questions wrapped up, media questions now. about 2 hours ago from TweetDeck
Bell: We'll know margins when AP7 is delivered. We're not looking at a forward loss. about 2 hours ago from TweetDeck
Question from UBS: How are customer settlements going? Bell: Off to a good start, lots to get through. Diciplined and robust process. about 2 hours ago from TweetDeck
McNerney: "Not particularly proud" how 747-8 is panning out. "We'll work it out" about 2 hours ago from TweetDeck
McNerney to Q: The supply chain has largely healed up. Still challenges. Gating item on ZA001-ZA006. Non-commital on 787 first flight in 08. about 3 hours ago from TweetDeck
Bell says ramp up period required post strike. So, which is it? about 3 hours ago from TweetDeck
Thought? McNerney said 1-for-1 delay about 3 hours ago from TweetDeck
Bell: Ramp up period necessary to return to full rate production across all programs. about 3 hours ago from TweetDeck
Bell: Pension fund drops 20% due to market fluctuations. about 3 hours ago from TweetDeck
Bell: "very likely" that Boeing capital corp. will supply financing in 2009. about 3 hours ago from TweetDeck
Bell: Strike dominated 3Q results. Update on full impact when Strike ends. about 3 hours ago from TweetDeck
Bell: Reviewing financial data. (release PDF) http://lin.cr/3pi about 3 hours ago from TweetDeck
McNerney: Boeing well positioned to weather rough patches. Commercial and defense areas safe due to global need and sec. threats. about 3 hours ago from TweetDeck
McNerney: Sees lower oil prices as an enabler of new aircraft purchases due to available funds. about 3 hours ago from TweetDeck
McNerney: "There will be some impact due to rising recessionary pressures." about 3 hours ago from TweetDeck
McNerney: Still a/c financing available on a selective basis. Next 5Qs safe. US EXIM bank viable option for int'l customers. 80% eligible. about 3 hours ago from TweetDeck
McNerney: Strike has helped Boeing better organize 787 line for production. One-for-one delay reinforced on aircraft production (incl. 787) about 3 hours ago from TweetDeck
McNerney: 787 tests completed. High-blow, hydraulic systems. Flight controls and gear still in testing. AA order vote of confidence for 787. about 3 hours ago from TweetDeck
McNerney: "we look forward to working with the USAF on the new tanker RFP" about 3 hours ago from TweetDeck
McNerney: Backlog growing. 10% with US airlines by value. 2 cancellations, 80 defferals - all reassigned. about 3 hours ago from TweetDeck
McNerney: Galley Issue: Widebody a/c delayed. Working with galley supplier Sell to resolve issue. about 3 hours ago from TweetDeck
McNerney: "Simply put, we want this strike to end." about 3 hours ago from TweetDeck
McNerney: Lynchpin for ending strike - "management rights" read:outsourcing of logistics jobs to factory vendors. about 3 hours ago from TweetDeck
McNerney: Clearly affected by strike and galley issues. "we wanted to avoid it and we want to end it." about 3 hours ago from TweetDeck
Call is getting underway right now. McNerney (CEO) and Bell (CFO) on the call. about 3 hours ago from TweetDeck
Call concluded, thanks for listening. about 2 hours ago from TweetDeck
Q Bloomberg: Order threshold for 747-8i to go ahead. A: McNerney: Yes. Frustrated by cost, doesn't change our mind. about 2 hours ago from TweetDeck
Q SeaTimes: Have you talked to Buffenbarger - what's fueling optimism? A: "There have been some informal discussion" indicate good headset. about 2 hours ago from TweetDeck
Q SeaPI: When next AP comes around, will labor be a factor for where to build? A: McNerney: IAM "fine workers" they can compete with anyone. about 2 hours ago from TweetDeck
Q: Are you ready to get in and negotiate with Buffenbarger (IAM nat'l prez)? A: "I am open to be a constructive force" in these negotiations about 2 hours ago from TweetDeck
McNerney: I think both sides are approaching new negotiations "with a constructive head set." Scott Carson and Kight will be leading neg. about 2 hours ago from TweetDeck
Q WSJ: How do you get past the fact that each side is dug in? Is there a compromise possible? McNerney: Yes, I think there is a way fwd. about 2 hours ago from TweetDeck
Analysts questions wrapped up, media questions now. about 2 hours ago from TweetDeck
Bell: We'll know margins when AP7 is delivered. We're not looking at a forward loss. about 2 hours ago from TweetDeck
Question from UBS: How are customer settlements going? Bell: Off to a good start, lots to get through. Diciplined and robust process. about 2 hours ago from TweetDeck
McNerney: "Not particularly proud" how 747-8 is panning out. "We'll work it out" about 2 hours ago from TweetDeck
McNerney to Q: The supply chain has largely healed up. Still challenges. Gating item on ZA001-ZA006. Non-commital on 787 first flight in 08. about 3 hours ago from TweetDeck
Bell says ramp up period required post strike. So, which is it? about 3 hours ago from TweetDeck
Thought? McNerney said 1-for-1 delay about 3 hours ago from TweetDeck
Bell: Ramp up period necessary to return to full rate production across all programs. about 3 hours ago from TweetDeck
Bell: Pension fund drops 20% due to market fluctuations. about 3 hours ago from TweetDeck
Bell: "very likely" that Boeing capital corp. will supply financing in 2009. about 3 hours ago from TweetDeck
Bell: Strike dominated 3Q results. Update on full impact when Strike ends. about 3 hours ago from TweetDeck
Bell: Reviewing financial data. (release PDF) http://lin.cr/3pi about 3 hours ago from TweetDeck
McNerney: Boeing well positioned to weather rough patches. Commercial and defense areas safe due to global need and sec. threats. about 3 hours ago from TweetDeck
McNerney: Sees lower oil prices as an enabler of new aircraft purchases due to available funds. about 3 hours ago from TweetDeck
McNerney: "There will be some impact due to rising recessionary pressures." about 3 hours ago from TweetDeck
McNerney: Still a/c financing available on a selective basis. Next 5Qs safe. US EXIM bank viable option for int'l customers. 80% eligible. about 3 hours ago from TweetDeck
McNerney: Strike has helped Boeing better organize 787 line for production. One-for-one delay reinforced on aircraft production (incl. 787) about 3 hours ago from TweetDeck
McNerney: 787 tests completed. High-blow, hydraulic systems. Flight controls and gear still in testing. AA order vote of confidence for 787. about 3 hours ago from TweetDeck
McNerney: "we look forward to working with the USAF on the new tanker RFP" about 3 hours ago from TweetDeck
McNerney: Backlog growing. 10% with US airlines by value. 2 cancellations, 80 defferals - all reassigned. about 3 hours ago from TweetDeck
McNerney: Galley Issue: Widebody a/c delayed. Working with galley supplier Sell to resolve issue. about 3 hours ago from TweetDeck
McNerney: "Simply put, we want this strike to end." about 3 hours ago from TweetDeck
McNerney: Lynchpin for ending strike - "management rights" read:outsourcing of logistics jobs to factory vendors. about 3 hours ago from TweetDeck
McNerney: Clearly affected by strike and galley issues. "we wanted to avoid it and we want to end it." about 3 hours ago from TweetDeck
Call is getting underway right now. McNerney (CEO) and Bell (CFO) on the call. about 3 hours ago from TweetDeck
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