Release Date: April 23, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: What drove the updated LEAP delivery guidance now, 10%-15%, down from 20%-25%? Is that constraint on the supplier side? Is that Boeing taking down their schedule?
A: H. Lawrence Culp, Chairman & CEO of General Electric, explained that the change is aligned with customer needs and emphasized the importance of maintaining safety and quality in manufacturing and deployment.
Q: Can you discuss the significant increase in orders in Commercial Engines & Services and Defense Propulsion & Technologies?
A: Rahul Ghai, Senior VP & CFO of General Electric, attributed the increase primarily to volume growth, with pricing also contributing positively across the board.
Q: With Q1 margins at 19%, 150 bps above the prior guide, can you revisit the factors impacting this?
A: Rahul Ghai discussed various factors including LEAP's lower unit volume and GE9X consistency, highlighting the impact of pricing, spare parts sales, and customer mix on the margin expansion.
Q: How does the ramp-up issue with LEAP potentially affect the CFM shop visit peak previously estimated at 2025?
A: H. Lawrence Culp noted that challenges with LEAP ramp-up might positively impact the aftermarket, potentially delaying the CFM shop visit peak, benefiting from sustained demand and lower retirements.
Q: What are the expectations for shop visit growth given the constraints in supply chain and internal productivity?
A: H. Lawrence Culp expressed confidence in meeting the guidance for shop visit growth, acknowledging ongoing operational challenges but also noting improvements and a strong start to Q2.
Q: Can you elaborate on the $650 million investment and its expected benefits, particularly regarding additive manufacturing?
A: H. Lawrence Culp described the investment as enhancing the domestic footprint and preparing for capacity expansions, with a focus on technologies like additive manufacturing to meet future demands efficiently.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
