Episode summary
Boeing Cuts Delivery Target, Sending Shares to 18-Month Low | Bloomberg Intelligence
Bloomberg Intelligence
· · 23 min · Hosts: Paul Sweeney, Scarlet Fu, Norah Mulinda · Guests: George Ferguson, David Welch, Lee Klaskow, Ken Shea
Summary
Boeing’s update was the most negative story of the hour: the company cut its full-year delivery target after management said it needs more time to stabilize production at higher rates. The analyst said the 737 program remains the key driver of profitability, but rate increases have been pushed back, and 787 output is also delayed by engine and supply issues. He argued the problem is broader than Boeing’s own factories, pointing to labor shortages, retirements, and competition for workers from data-center construction and other industries.
General Motors’ move to the Nasdaq was presented as a branding and indexing strategy as much as a listing change. The company wants a more tech-forward image tied to self-driving software and EVs, and the analyst said inclusion in the Nasdaq-100 could attract new buyers. But he also said GM remains exposed to affordability pressure, has not embraced hybrids enough, and still depends heavily on trucks and SUVs while EV demand remains weak without incentives.
UPS and Coca-Cola offered a more constructive read on the economy. UPS raised guidance by shifting toward higher-margin business, including data centers, healthcare, and automotive, while Coca-Cola beat and raised guidance on strong global demand and improving volume. The discussion suggested transport and consumer staples are still benefiting from resilient demand, even as inflation and fuel costs remain a drag.
Key takeaways
- Boeing’s delivery cut reflects delayed rate increases at 737 and 787, which the analyst said pushes profitability further out.
- The analyst said Boeing’s problems are tied to a broader manufacturing labor squeeze, not just company-specific execution.
- GM’s Nasdaq move is meant to support a tech valuation and potential Nasdaq-100 inclusion, but the stock still faces consumer affordability and EV demand risks.
- UPS is improving mix by leaning away from low-margin Amazon volume and toward higher-yield data center, healthcare, and automotive shipments.
- Coca-Cola’s strength came from global volume and geographic balance, while price-driven growth has become less important than in prior years.
Notable quotes
“nothing happens fast anymore in manufacturing, especially aerospace manufacturing”
“everything just got kind of pushed to the right for a year”
“it wants to position itself as a tech forward company”
“Coke is, you know, very, very focused on selling high margin concentrates to its bottling partners”
How the episode opens
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Let's get back to the earnings story we got coming fast and furious. Uh Boeing, talk about an American blue chip company, one of my all-time faves. Uh a little bit of a rough spot there and I thought we were back on firm footing. George Ferguson uh joins us. Bloomberg intelligence, senior aerospace, defense, and airlines analyst talked to us about Boeing and JetBlue as well. They reported uh George, let's start with Boeing. What did we learn there?
Uh so I think we learned uh nothing happens fast anymore in manufacturing, especially aerospace manufacturing. Uh it sounds like uh the CEO dropped a bomb right in the beginning of the call and basically said uh rate 4047 they're having difficulty stabilizing at that's for the 737 uh they're working with witchah it sounded like some wings issues maybe fuselage issues but essentially again the supply chain uh not stable and so they push out uh rate 52 to the uh back half of 2027, we kind of thought rate 52 would be achieved in the early part of 27. Uh so there's a bunch of folks had to go back and redo their models.
That's the most important airplane for them, right? Uh the 737 when rate gets up on that, you're going to get the profitability out of Boeing uh that you uh expect, but not sort of prepandemic profitability. Um and again, it looks like we're we're delayed on that.
and and 787 looks like there's delays as well getting the number of engines they want on that to be able to build that at the right at a rate in of 10.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- boeing delivery outlook
- gm listing shift
- ups earnings guidance
- coca-cola earnings
- transportation logistics demand
Companies and tickers mentioned
- BA
- GM
- UPS
- KO
- Boeing
- General Motors
- United Parcel Service
- Coca-Cola
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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