Boeing is set to announce its 2008 fourth-quarter and year-end earnings today at 10:30 ET. I'll be live blogging the conference call with CEO Jim McNerney and CFO James Bell here via twitter. The full live blogged transcript will be available at the conclusion of the call.
The company is expected to provide guidance for the year ahead and discuss progress on the 787 Dreamliner program, the first major update since the 3rd quarter earnings call last October during the IAM strike.
The company is expected to provide guidance for the year ahead and discuss progress on the 787 Dreamliner program, the first major update since the 3rd quarter earnings call last October during the IAM strike.
Boeing Posts Quarterly Loss on Strike Impact and ChargesFull liveblog transcript continued below.
- Fourth-quarter revenues declined to $12.7 billion from $17.5 billion as labor strike pushed airplane deliveries out of the quarter
- Fourth-quarter EPS declined to loss of $0.08 per share, reduced by an estimated total of $1.79 due to strike, 747 charge and litigation-related reserve
- Backlog grew 8 percent in 2008 to a record $352 billion
- 2009 EPS guidance of $5.05 to $5.35 underpins a solid foundation in challenging times
Boeing 2008 Year-End Earnings Liveblog Transcript
That's all folks. (play Looney Tunes theme) 11:49 AM Jan 28th from TweetDeck
Kevin Dunn, FT: Order forecasting for 2009? McNerney: Book to build will be less than 1. Meaning less than 485 orders for the year. 11:46 AM Jan 28th from TweetDeck
Susanna Ray, Bloomberg: Timing on job cuts? McNerney: Heavy in the first half of the year. Mostly sum of attrition and layoffs. 11:44 AM Jan 28th from TweetDeck
Lynn Q2: Where does 787 schedule threats lie? McNerney: Unknown unknowns during flight test. "possible long pole in the tent" 11:43 AM Jan 28th from TweetDeck
Lynn Lunsford, WSJ: Production rates. Does Southwest and American slowdown reverberate through backlog? McNerney: More or less, making prep.
McNerney: All orders under pressure. A number of discussions on 747-8i. Both F and Pax versions are both viable. (why no mention of AF1?)
Gates Q2: 747, don't see cancellation. 747-8I question. Do you expect an order soon? Does moving forward hinge on this? 11:37 AM Jan 28th from TweetDeck
Dominic Gates, Seattle Times: More on cuts. Geographical color? McNerney: Rest of cuts across all geographies, units, incl. WA. 11:37 AM Jan 28th from TweetDeck
FLASH: Boeing now sees job cuts to 10,000. More than twice announced a few weeks ago. 11:36 AM Jan 28th from TweetDeck
Bill Rigby, Reuters: More on job cuts. 4,500 from BCA, 5,500 elsewhere. 787 Cancellation to be reflected in O&D page. 11:35 AM Jan 28th from TweetDeck
James Wallace, Seattle P-I: 10,000 jobs cuts overall. McNerney: 4,500 from BCA, more from other places in the company. 11:34 AM Jan 28th from TweetDeck
Time for media questions. I'm on webcast, not the call. Lots of questions though 11:32 AM Jan 28th from TweetDeck
McNerney: Slightly more world wide deferrals next year and less for North America. 11:32 AM Jan 28th from TweetDeck
David Strauss UBS: What's the time frame on deferrals? McNerney: All over the place, longer term, quarter by quarter. More in NA in 08. 11:31 AM Jan 28th from TweetDeck
What McNerney is not mentioning is that they are doing a quiet victory lap on Air Force One. 11:27 AM Jan 28th from TweetDeck
Joe Nadol: Why are you still building 747-8? McNerneys: Revenues outweigh the costs. If this wasn't the case "we would stop it." 11:26 AM Jan 28th from TweetDeck
@BLRAviation You could not be more right, sir. Though I think I went cross eyed 10 min ago 11:25 AM Jan 28th from TweetDeck in reply to BLRAviation
Lots of financial discussion which is making me realize I should've taken a finance class during college. 11:22 AM Jan 28th from TweetDeck
Howard Rubel, Jeffries - How long will it take you to get over the strike? 11:17 AM Jan 28th from TweetDeck
Bell: We are working closely with customers..."not giving specific numbers." 11:14 AM Jan 28th from TweetDeck
Heidi Wood, Morgan Stanley: 787 delays and costs, what's the "all in" cost on the Dreamliner. 11:13 AM Jan 28th from TweetDeck
McNerney: Load factor dropping 3%, still falls within our deferred/cancellation forecast. 11:12 AM Jan 28th from TweetDeck
BA Stock: Up 2.41% ($1.04) at $44.26 11:11 AM Jan 28th from TweetDeck
RT @Flightglobal: Boeing data indicates 15 787s recently cancelled http://tinyurl.com/aleepg 11:10 AM Jan 28th from TweetDeck
Cai Von Ruhmor - Cowen and Co: IATA 3% traffic decline forecast, how will this impact Boeing? 11:09 AM Jan 28th from TweetDeck
McNerney: 787 takeaway - All six flight test airplanes flying within four months of ZA001 first flight. 11:08 AM Jan 28th from TweetDeck
McNerney: Next two airplanes on schedule. "Tight on paper." Software integration is "moving normally." Benefit of delay, tailwind on Cert. 11:07 AM Jan 28th from TweetDeck
McNerney: Getting Ap 1 and 2 completed on timing is step 1. We are feeling comfortable with timing and rework. 11:07 AM Jan 28th from TweetDeck
Doug Harned - Question re 787 flight test timing on ZA2-6. Etc. 11:06 AM Jan 28th from TweetDeck
McNerney: Reintegrated engineering on 747/787 into supply chain. Now have more often and "harder hitting" review process. 11:06 AM Jan 28th from TweetDeck
McNerney: Now at a time when we need a single minded focus on bringing 787. Changes "more to come". All about execution and accountability 11:05 AM Jan 28th from TweetDeck
McNerney: BCA created islands in the name of innovation "was" successful strategy. Waited too long to move to execution and integrated model 11:04 AM Jan 28th from TweetDeck
Ron Epstein BoA - changes in product development process. Color to "product development as and island" 11:03 AM Jan 28th from TweetDeck
1st question about financing. Bell: "we can do more than $1B in financing, but we're right around $1B." 11:02 AM Jan 28th from TweetDeck
Q/A time! 11:00 AM Jan 28th from TweetDeck
Delivery targets from BCA: 480-485 aircraft delivered in 2009. 10:59 AM Jan 28th from TweetDeck
Bell: In production airplane remain at stable levels for coming years. Same breath: May require modest production cuts at BCA. (huh?) 10:55 AM Jan 28th from TweetDeck
Unanswered question/Open thought: At what point will Boeing see the cost targets met from 787 suppliers? When will 787 be profitable? 10:53 AM Jan 28th from TweetDeck
Quick math: Boeing strike cost Boeing $112 in deferred revenue per day based on $6.4B over 57 day strike. 10:50 AM Jan 28th from TweetDeck
Bell: Discussing wing redesign and related fuselage changes drove 747-8 delay and non common 747-400 parts within supply chain. 10:48 AM Jan 28th from TweetDeck
CFO James Bell now running through financial data. Strike lost about $6.4B in revenue, 101 aircraft not delivered. 10:46 AM Jan 28th from TweetDeck
McNerney: Do expect increase in deferrals and cancellations in 2009. Backlog is diversified enough to protect the co. $1B in BCC financing. 10:44 AM Jan 28th from TweetDeck
McNerney: Layoffs, attrition, retirement, etc will drive workforce reduction. 10:43 AM Jan 28th from TweetDeck
McNerney: Commercial Backlog - $279B. IDS Backlog - $73B. Now talking about 6% of current workforce being cut. 10:43 AM Jan 28th from TweetDeck
McNerney: Cites commercial services, 737 and F/A-18E/F as major profit drivers. "Competitiveness in tact" 10:40 AM Jan 28th from TweetDeck
McNerney: "Responsible and accountable program leadership" - Pat Shanahan still owns 787. Supply Chain & Airplane programs hand in hand. 10:39 AM Jan 28th from TweetDeck
McNerney: 15 787s from late 201X customer now removed. Reintroducing tighter accountability on development programs. 10:38 AM Jan 28th from TweetDeck
McNerney: Ground vibration tests on airplane 2 and get production rolling. 10 787s/month by 2012. May investigate accelerated rate. 10:37 AM Jan 28th from TweetDeck
McNerney: Discussing milestone for 787. Fastener issues largely resolved for ZA001 and ZA002. Gauntlet tests to come. 10:36 AM Jan 28th from TweetDeck
McNerney: 747-8 work statement expanded. underestimated engineering work, scarce resources = loss. Still believe A/C is competitive. 10:35 AM Jan 28th from TweetDeck
McNerney now discussing current business environment. Down: Strike, 747/787 delays, financial crisis. Up: Many strong programs. 10:33 AM Jan 28th from TweetDeck
Jim and James, go! 10:32 AM Jan 28th from TweetDeck
Call is getting started. 10:31 AM Jan 28th from TweetDeck
5. Any forecast of defense spending in a new administration. Big decisions coming on F-22, etc. 10:31 AM Jan 28th from TweetDeck
4. Reaction to $5B for Airbus "backstop financing" from the French Govt. (Boeing might have a different name for it though) 10:30 AM Jan 28th from TweetDeck
3. Production rate forecasting on 777/737 and overall sense of immediate demand for new aircraft 10:30 AM Jan 28th from TweetDeck
Things I'm hoping to hear about: 1. 787 Status with a bit more color. 2. Reaction to winning Air Force One replacement battle 'by default' 10:28 AM Jan 28th from TweetDeck
Cinnamon toast crunch, a fresh cup of coffee and Boeing 4Q earnings for breakfast. Yum. Let's get this show on the road. 10:26 AM Jan 28th from TweetDeck
That's all folks. (play Looney Tunes theme) 11:49 AM Jan 28th from TweetDeck
Kevin Dunn, FT: Order forecasting for 2009? McNerney: Book to build will be less than 1. Meaning less than 485 orders for the year. 11:46 AM Jan 28th from TweetDeck
Susanna Ray, Bloomberg: Timing on job cuts? McNerney: Heavy in the first half of the year. Mostly sum of attrition and layoffs. 11:44 AM Jan 28th from TweetDeck
Lynn Q2: Where does 787 schedule threats lie? McNerney: Unknown unknowns during flight test. "possible long pole in the tent" 11:43 AM Jan 28th from TweetDeck
Lynn Lunsford, WSJ: Production rates. Does Southwest and American slowdown reverberate through backlog? McNerney: More or less, making prep.
McNerney: All orders under pressure. A number of discussions on 747-8i. Both F and Pax versions are both viable. (why no mention of AF1?)
Gates Q2: 747, don't see cancellation. 747-8I question. Do you expect an order soon? Does moving forward hinge on this? 11:37 AM Jan 28th from TweetDeck
Dominic Gates, Seattle Times: More on cuts. Geographical color? McNerney: Rest of cuts across all geographies, units, incl. WA. 11:37 AM Jan 28th from TweetDeck
FLASH: Boeing now sees job cuts to 10,000. More than twice announced a few weeks ago. 11:36 AM Jan 28th from TweetDeck
Bill Rigby, Reuters: More on job cuts. 4,500 from BCA, 5,500 elsewhere. 787 Cancellation to be reflected in O&D page. 11:35 AM Jan 28th from TweetDeck
James Wallace, Seattle P-I: 10,000 jobs cuts overall. McNerney: 4,500 from BCA, more from other places in the company. 11:34 AM Jan 28th from TweetDeck
Time for media questions. I'm on webcast, not the call. Lots of questions though 11:32 AM Jan 28th from TweetDeck
McNerney: Slightly more world wide deferrals next year and less for North America. 11:32 AM Jan 28th from TweetDeck
David Strauss UBS: What's the time frame on deferrals? McNerney: All over the place, longer term, quarter by quarter. More in NA in 08. 11:31 AM Jan 28th from TweetDeck
What McNerney is not mentioning is that they are doing a quiet victory lap on Air Force One. 11:27 AM Jan 28th from TweetDeck
Joe Nadol: Why are you still building 747-8? McNerneys: Revenues outweigh the costs. If this wasn't the case "we would stop it." 11:26 AM Jan 28th from TweetDeck
@BLRAviation You could not be more right, sir. Though I think I went cross eyed 10 min ago 11:25 AM Jan 28th from TweetDeck in reply to BLRAviation
Lots of financial discussion which is making me realize I should've taken a finance class during college. 11:22 AM Jan 28th from TweetDeck
Howard Rubel, Jeffries - How long will it take you to get over the strike? 11:17 AM Jan 28th from TweetDeck
Bell: We are working closely with customers..."not giving specific numbers." 11:14 AM Jan 28th from TweetDeck
Heidi Wood, Morgan Stanley: 787 delays and costs, what's the "all in" cost on the Dreamliner. 11:13 AM Jan 28th from TweetDeck
McNerney: Load factor dropping 3%, still falls within our deferred/cancellation forecast. 11:12 AM Jan 28th from TweetDeck
BA Stock: Up 2.41% ($1.04) at $44.26 11:11 AM Jan 28th from TweetDeck
RT @Flightglobal: Boeing data indicates 15 787s recently cancelled http://tinyurl.com/aleepg 11:10 AM Jan 28th from TweetDeck
Cai Von Ruhmor - Cowen and Co: IATA 3% traffic decline forecast, how will this impact Boeing? 11:09 AM Jan 28th from TweetDeck
McNerney: 787 takeaway - All six flight test airplanes flying within four months of ZA001 first flight. 11:08 AM Jan 28th from TweetDeck
McNerney: Next two airplanes on schedule. "Tight on paper." Software integration is "moving normally." Benefit of delay, tailwind on Cert. 11:07 AM Jan 28th from TweetDeck
McNerney: Getting Ap 1 and 2 completed on timing is step 1. We are feeling comfortable with timing and rework. 11:07 AM Jan 28th from TweetDeck
Doug Harned - Question re 787 flight test timing on ZA2-6. Etc. 11:06 AM Jan 28th from TweetDeck
McNerney: Reintegrated engineering on 747/787 into supply chain. Now have more often and "harder hitting" review process. 11:06 AM Jan 28th from TweetDeck
McNerney: Now at a time when we need a single minded focus on bringing 787. Changes "more to come". All about execution and accountability 11:05 AM Jan 28th from TweetDeck
McNerney: BCA created islands in the name of innovation "was" successful strategy. Waited too long to move to execution and integrated model 11:04 AM Jan 28th from TweetDeck
Ron Epstein BoA - changes in product development process. Color to "product development as and island" 11:03 AM Jan 28th from TweetDeck
1st question about financing. Bell: "we can do more than $1B in financing, but we're right around $1B." 11:02 AM Jan 28th from TweetDeck
Q/A time! 11:00 AM Jan 28th from TweetDeck
Delivery targets from BCA: 480-485 aircraft delivered in 2009. 10:59 AM Jan 28th from TweetDeck
Bell: In production airplane remain at stable levels for coming years. Same breath: May require modest production cuts at BCA. (huh?) 10:55 AM Jan 28th from TweetDeck
Unanswered question/Open thought: At what point will Boeing see the cost targets met from 787 suppliers? When will 787 be profitable? 10:53 AM Jan 28th from TweetDeck
Quick math: Boeing strike cost Boeing $112 in deferred revenue per day based on $6.4B over 57 day strike. 10:50 AM Jan 28th from TweetDeck
Bell: Discussing wing redesign and related fuselage changes drove 747-8 delay and non common 747-400 parts within supply chain. 10:48 AM Jan 28th from TweetDeck
CFO James Bell now running through financial data. Strike lost about $6.4B in revenue, 101 aircraft not delivered. 10:46 AM Jan 28th from TweetDeck
McNerney: Do expect increase in deferrals and cancellations in 2009. Backlog is diversified enough to protect the co. $1B in BCC financing. 10:44 AM Jan 28th from TweetDeck
McNerney: Layoffs, attrition, retirement, etc will drive workforce reduction. 10:43 AM Jan 28th from TweetDeck
McNerney: Commercial Backlog - $279B. IDS Backlog - $73B. Now talking about 6% of current workforce being cut. 10:43 AM Jan 28th from TweetDeck
McNerney: Cites commercial services, 737 and F/A-18E/F as major profit drivers. "Competitiveness in tact" 10:40 AM Jan 28th from TweetDeck
McNerney: "Responsible and accountable program leadership" - Pat Shanahan still owns 787. Supply Chain & Airplane programs hand in hand. 10:39 AM Jan 28th from TweetDeck
McNerney: 15 787s from late 201X customer now removed. Reintroducing tighter accountability on development programs. 10:38 AM Jan 28th from TweetDeck
McNerney: Ground vibration tests on airplane 2 and get production rolling. 10 787s/month by 2012. May investigate accelerated rate. 10:37 AM Jan 28th from TweetDeck
McNerney: Discussing milestone for 787. Fastener issues largely resolved for ZA001 and ZA002. Gauntlet tests to come. 10:36 AM Jan 28th from TweetDeck
McNerney: 747-8 work statement expanded. underestimated engineering work, scarce resources = loss. Still believe A/C is competitive. 10:35 AM Jan 28th from TweetDeck
McNerney now discussing current business environment. Down: Strike, 747/787 delays, financial crisis. Up: Many strong programs. 10:33 AM Jan 28th from TweetDeck
Jim and James, go! 10:32 AM Jan 28th from TweetDeck
Call is getting started. 10:31 AM Jan 28th from TweetDeck
5. Any forecast of defense spending in a new administration. Big decisions coming on F-22, etc. 10:31 AM Jan 28th from TweetDeck
4. Reaction to $5B for Airbus "backstop financing" from the French Govt. (Boeing might have a different name for it though) 10:30 AM Jan 28th from TweetDeck
3. Production rate forecasting on 777/737 and overall sense of immediate demand for new aircraft 10:30 AM Jan 28th from TweetDeck
Things I'm hoping to hear about: 1. 787 Status with a bit more color. 2. Reaction to winning Air Force One replacement battle 'by default' 10:28 AM Jan 28th from TweetDeck
Cinnamon toast crunch, a fresh cup of coffee and Boeing 4Q earnings for breakfast. Yum. Let's get this show on the road. 10:26 AM Jan 28th from TweetDeck
Recent Comments