Boeing conference call with 787 update

Boeing held its 2012 earnings call, and with it officials offered an update on the 787 situation.

Jim McNerney (CEO) (JM)

Greg Smith (CFO) (GS)

JM: 787 Update–

Job one on 787 is supporting the investigation on the 787 battery incidents. We rigorously support the process. We do believe good progress is being made in narrowing down the cause. Assigned hundreds of experts within Boeing, brought in outside experts, supporting NTSB, JTSB. We will get to the bottom of this and in so doing restore confidence in the 787. Thanks engineers and all others in investigation. We’ve seen the airplane in service for 15 months and it delivers on promises.

  • Progress continues on 787-9, with assembly beginning in mid-2013. First customer delivery on schedule in early 2014.
  • The case for the 787-10 has strengthened with a potential launch this year.
  • We have more work to do on 777X and this is a big part of the focus this year.

GS:

  • Our 2013 guidance assumes no significant financial impact due to 787 issues.
  • Expect 635-645 deliveries this year, including 60 787s via rate hike and the reworked airplanes. Deliveries from Everett Mod center will decline.

Q&A

Continue reading