Boeing Co BA
Q1 2013 Earnings Call Transcript

Transcript Call Date 04/24/2013

Operator: Good day, everyone, and welcome to the Boeing Company's First Quarter 2013 Earnings Conference Call. Today's call is being recorded. The management's discussion and slide presentation plus the analyst 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.

Troy Lahr - VP, IR: Thank you and good morning. Welcome to Boeing's first quarter 2013 earnings call. I am Troy Lahr and with me today are Jim McNerney, Boeing's Chairman, President, and Chief Executive Officer; and Greg Smith, Boeing's Chief Financial Officer. After comments by Jim and Greg, we'll 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 our press release issued earlier today and as a reminder, you can follow today's broadcast and slide presentation through our website at

Before we begin, I need to remind you that any discussions and goals this morning are likely to involve risks, which are detailed in our news release, in our various SEC filings, and in the forward-looking statement disclaimer at the end of this web presentation. In addition, we refer you to the earnings release and presentation for disclosures and reconciliations of non-GAAP measures that we may use when discussing our results and outlook.

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

W. James McNerney, Jr. - Chairman, President and CEO: Thank you, Troy and good morning, everybody. Let me begin today with an update on the 787s return to flight, followed by an overview of our business environment and some thoughts on yet another strong quarter of operating performance. After that Greg will walk you through our financial results and outlook.

As you may recall January I described returning the 87 to service as our first order of business, nothing is more important than the safety of the crews and passengers who fly our airplanes and nothing rallies our team more than the challenge of resolving issues that affect our customer's ability to operate those airplanes as intended.

Over these many weeks hundreds of experts from across Boeing, our supplier partners and other outside organizations worked day and night alongside U.S. and Japanese authorities to identify the factors that could have caused the 787 batteries to fail and then to design, develop and test a comprehensive permanent fix.

Last Friday, the Federal Aviation Administration formally approved our proposed solution after carefully examining the results of a rigorous month long certification test program. In short, our battery system improvements include multiple layers of protection to prevent and isolate potential faults along with the new enclosure design to keep any battery event from affecting the airplane or even being noticed by passengers. After more than 200,000 hours of engineering work, validation by a non-advocate team of more than a dozen leading battery experts, and now with the certification by the FAA, the 787 will return to the flight with our continued high confidence in its safety, reliability and overall integrity.

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