The Boeing Company (NYSE:BA) Q4 2014 Earnings Conference Call - Final Transcript

Jan 28, 2015 • 10:30 am ET

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The Boeing Company (NYSE:BA) Q4 2014 Earnings Conference Call - Final Transcript

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Presentation
Operator
operator

Thank you for standing by. Good day, everyone, and welcome to the Boeing Company's Fourth Quarter 2014 Earnings Conference Call. Today's call is being recorded. The management discussion and slide presentation, plus the analysts and media question-and-answer sessions are being broadcast live over the Internet.

At this time, for opening remarks and introductions, I'm turning the call over to Mr. Troy Lahr, Vice President of Investor Relations for the Boeing Company. Mr. Lahr, please go ahead.

Executive
Troy Lahr

Thank you, and good morning. Welcome to Boeing's fourth quarter 2014 earnings call. I'm Troy Lahr and with me today are Jim McNerney, Boeing's Chairman and CEO; and Greg Smith, Boeing's CFO. After comments by Jim and Greg, we will take your questions. In fairness to others on the call, we ask that you please limit yourself to one question.

As always, we have provided detailed financial information in today's press release and you can follow this broadcast and slide presentation through our website at boeing.com.

(Forward-Looking Cautionary Statements)

In addition, we refer you to our earnings release and presentation for disclosures and reconciliation of non-GAAP measures that we use when discussing our results and outlook.

Now, I'll turn the call over to Jim McNerney.

Executive
W. James McNerney

Thank you, Troy; and good morning, everyone. Let me begin today with a brief review of some recent strategic achievements followed by comments on our strong 2014 operating performance, then an overview of the business environment. After that, Greg will walk you through our financial results and outlook in greater detail.

Now let's move to slide two, please. Boeing is entering 2015 stronger, healthier and better positioned in its markets that any time in recent memory. Our strategic accomplishments over the past 24 months alone provide a compelling picture of the progress we have made to enable sustained growth and improving profitability as we near the start of our second century in business.

During that time frame, we captured more than 2,700 net new commercial airplane orders, grew our market share in deliveries with six successful production rate increases, including reaching our target 10 per month on the 787 with more than three per month flowing steadily from our capacity expansion in South Carolina.

We completed a comprehensive refresh of our commercial airplane product line with the highly successful launches of the Twin-Aisle 787-10 and the 777X on a combined 400 orders and commitments, and the launch of the Single-Aisle 737 MAX 200 with a 100 airplane order from Lion Air.

Starting with the hard fought technology games of the 787, we have built a substantial technological lead in commercial aviation, particularly in the high value Twin-Aisle market. And by listening to our customers and applying our proven technologies and lessons learned in summary, we have de-risked a decade of new product development, while expanding our edge in the performance and efficiency of our airplanes.

Turning to Boeing Defense, Space & Security. Despite a tough domestic budget environment, BDS continued to strengthen its relative market position and competitiveness. We have