Credit Suisse issued a note late yesterday on a variety of topics that included this:
Airbus makes several key announcements at the annual shareholder meeting: First and foremost, Airbus now expects 2017 book:bill to dip below 1.0x. However, with backlog continuing to hover at historic highs from years of robust order activity the slowdown is as we would expect. The more concerning aspect is the open ended commentary by CFO Harald Wilhelm that it could be lower for “some time,” which we feel could further raise concern over the maturity of the current cycle. Despite this, CEO Tom Enders, with a dismissal of his retirement as a near-term possibility, intends to proceed at the current build rates, offering that he now expects 720 delivers for 2017, 20 more than previously guided.
Boeing’s guidance in January was that it will be a challenge to hit a 1:1 book:bill. It’s off to a good start this year, certainly better than Airbus.