The Boeing’s (BA) at Bernstein Strategic Decision Conference

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CEO Dennis Muilenburg

Strong growth in commercial passenger traffic

“Commercial airplanes continues to be a very strong marketplace and we are seeing sustained passenger traffic growth, historically 5% to 6% a year — year-to-date commercial passenger traffic is growing little over 8% around the globe with very strong growth continuing in Asia Pacific and Middle East region….we see commercial airplanes as a strong growth market for the future.”

More diversified backlog, less cyclical market

“…the global marketplace is a much less cyclical market, passenger traffic patterns today are much different than they have been in the past. We have a backlog that seven years instead of two years, a backlog that’s geographically diversified not a U.S., Europe dominated backlog. So from a market standpoint, it’s less cyclical.”

The strongly oversold position may go higher

“Even against that production profile, we are strongly oversold and market demand signals are telling us, it could go even higher. So it is part of our effort to keep supply and demand in balance, have a long-term growth plan.”

The future is the 787 and 737 as cash generators

“we can see very clear lines to driving productivity and cash performance on 787 and the data says that we are making good steady solid progress on that. That is one of the biggest cash generation levers that we have. And this is operating on nearly 700 airplanes in backlog. That combined with 737 ramp-up just going to volume ramp-up at 57 a month. Those two things are the cash generators in the company — additional cash generators over the next five years.”