Boeing: Takeaway's from Cowen's Aerospace/Defense & Transportation Conference
Boeing presented at Cowen's Aerospace/Defense & Transportation Conference; takeaways were as follows: - CEO says overall aircraft demand is stronger than ever seen since he's been in the industry - US demand is improving; Europe is "still to come"; strength in Middle East and China "unabated" - Sees no effect from the Emerging Market stress - Co still experiencing more requests to move delivery dates closer rather than push them out - Pricing is being supported by demand for new technology, despite intense competition - See signs of life in the cargo market - "Cargo is the thing that will keep (the 747-8) going" - 787 is doing well, despite co having to add people in SC to address a bottleneck in mid-body production Only four 787's were delivered in Jan - Say it is "fair criticism" that co needs to help suppliers more on engineering and process improvement; says co is trying to do better - Room for margins to improve. partly from driving volume and from better prices from suppliers - Note the budget agreement delays sequestration for two years, but it hasn't gone away - Real international strength BA has is industrial cooperation in all countries around the world; leverage-able; "big advantage" - Planning on "flatish" defense business margins; "It's a tough business"