Boeing CEO David Calhoun is overseeing the company's annual meeting today where he's expected to discuss big changes for the Dow component. Sheila Kahyaoglu, aerospace and defense analyst at Jefferies, joins "Squawk Box" to discuss. A slew of upcoming Boeing announcements aim to calm investor nerves and set the stage for future growth — much like when Dave Calhoun was named as the aerospace giant’s next CEO.
In the next week, Boeing will hold its annual meeting, report first-quarter results and face the application deadline for a multi-billion dollar aid package from the federal government.
Those familiar with the discussions of Boeing’s leadership said Calhoun is planning to show investors the company will build two financial bridges to the future: A near-term one focused on cutting near-term losses brought on by the coronavirus and a longer-term bridge to deal with fewer orders for commercial airplanes and a smaller airline industry.
The question for investors is how much it will cost Boeing to build those bridges and where will the money come from. The growing uncertainty over possible losses in the first quarter and beyond is a principal reason shares of Boeing are down more than 50% since Calhoun became CEO in January.
Calhoun has made it clear he and his leadership team are preparing the company for a future that will look far different than two years ago, when commercial airplanes orders were soaring and production rates climbed to record highs.
In a message sent to Boeing employees in early April, Calhoun wrote, “We will need to balance the supply and demand accordingly as the industry goes through the recovery process for years to come.”
That means production cuts in the commercial airplane division. Boeing executives tell CNBC the company is expected to outline new targets for wide-body plane production, including a new, lower monthly build rate for the 787 Dreamliner.
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