Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| And specifically very proud of the team that has the P8 wins in Canada and Germany |
| So we're stronger and we're better for it |
| And that's a pretty good opportunity for us |
| We're confident that it's going to throw off mid teen margins, and the free cash flow conversion is very high |
| It's going to have good mid single digit revenue growth for quite a while |
| Because once you do reduce travel to work, your quality gets better, your stability gets better, and probably most importantly, the work of the mechanic gets better |
| We're trying to deliver a very strong business in support of our customers, and we're doing that |
| There's good momentum |
| We look forward to delivering a replacement cycle where we're going to have significant improvements in efficiencies and emissions as airplanes re-fleet |
| And our expectation is that we'll get more predictable and better positioned, not only for our customers, but for our investors |
| So we are enthusiastic about our defense portfolio for sure |
| So great franchise, wonderful innovation happening, and we feel very good about what our long term prospects are broadly speaking |
| How should investors think about Boeing and bidding and that whole complex? Brian West Well, let me just say that we feel very confident in the capabilities that we bring to bear as it pertains to the warfighter, particularly in what we call air dominance fighters |
| So overall, broadly demand for our defense products and capabilities, very solid |
| We believe that the product performs very well in the marketplace, and we're going to keep proving out its capability |
| So I've got a lot of enthusiasm and optimism for our services franchise, and we've got a great team that's executing on that every single day |
| And when that happens, it's going to be better mix and accretive margins |
| But we expect BCA margins to get better through the year |
| And that's incredibly powerful information that we bring back to the company |
| On BCA when you can get higher delivery volumes, when you can get better mix, you can have lower abnormal costs, and you get the benefit of operating leverage, margins are going to improve |
| As it pertains to our defense business, equally, there's some very nice robust demand given the global threat environment that we find ourselves in around the world, and we are competing and our products are showing up nicely and missions are being supported by our customers |
| I'd also say that in BDS, even since November 2022, we've made even more progress on tightening the underwriting standards and the contracting is getting stronger |
| So we feel confident |
| On the anti-icing, that is an effort that we have swarmed our very best resources on to determine a design solution and we're making good progress on that front |
| And it's going to be all the things that I outlined earlier around making sure that we could do it in a predictable, dependable, high quality fashion to deliver those airplanes for our customers |
| We've been in China for over 50 years supporting our customers and seeing this amazing growth over decades |
| And as they do their important work, we're undertaking comprehensive actions so that we can move forward to strengthen quality and build confidence |
| That's pretty powerful |
| But we believe that the actions that we're taking right now better position us for that long term |
| That gives us the ability to think longer term |
| Statement |
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| First of all, there's a combination of lower deliveries, lower volume at BCA, and negative mix from inventory to airplanes |
| We stopped production for a prolonged effort, well over a year on the 787 |
| Now, the first quarter, I know you asked long term, but I say first quarter margins of BCA, because of the events of January 5th and everything I described are going to be more like negative 20% |
| And then there are some working capital pressures, both inventory as well as some receipt timing |
| So how do you manage the customer expectations, right? I mean, there's been a fair number of headlines from customers that are not happy with not getting airplanes |
| The FAA is deeply involved and undertaking a tougher audit than anything we've ever been through before |
| In fact, we're deliberately going too slow to get this right |
| It's a lot that's got to happen between now and then, but the pieces, as I mentioned, still hold together where the BCA margin business gets back to where it was |
| It had been going on too long |
| There's more work to do and we're not going to be satisfied until we complete this journey |
| They'll still be negative in 2024 |
| So in the near term, the slowdown has impacted us and it's impacted them, and we're communicating it to them so that we can work our way through it and we will stand behind our customers |
| The ones who are ahead get to slow down |
| There's been a lot of headlines about Boeing lately |
| As it pertains to the budget, nothing really was surprising there |
| So it's going to be impacted for those customer considerations I mentioned and all the things we're doing around the factory |
| Every day that goes by, there's less risk as we move towards delivering those for our customers |
| There's changes that need to happen, there's no doubt about it |
| So as we have decided to hold airplanes in position longer and get after this traveled work broadly, it is going to impact revenue, earnings, and cash flows both in the quarter |
| Turns out it wasn't enough |
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