BA
#Yes, I put it into three main areas, <UNK>.
R&D, we do expect R&D to pick up a little bit in the back half, with the, in particular, the 777X ramping up.
We'll have more 787-9 deliveries, 787-9 deliveries, and then with more 747s, as well.
So that's the ---+ I'll say the dilutive impact for the margins, going through the balance of the year.
Having said that, obviously, we got everybody extremely focused on continued good productivity, and we will through the balance of the year.
But it's really that mix that's driving it.
I would say traditionally, as you know, we're back-loaded.
But third and fourth quarter will be heavier than first and second quarter.
And again, progress payments, milestones, and then just delivery profile.
We don't mention commitments unless things are largely done.
And so things are largely done.
And there's timing considerations, and in some cases, driven by customer requirements and things.
And so we let the customer decide when to finally approve and release.
But I have a very high degree of confidence in the 25 number.
We don't anticipate any change from what we talked about when we gave guidance.
So again, I see advances about flattish year over year ---+
Thank you.
Thank you.
We'll continue this morning with media questions for <UNK> and <UNK>.
If you have any questions following this part of the session, please call our media relations team at 312-544-2002.
Operator, we're ready for the first question.
And in the interest of time, we ask that you limit everyone to just one question, please.
Good morning, <UNK>.
Listen, you're right, they decided not to go through with the election.
Presumably because they felt they didn't have the votes, but you'd have to ask them specifically about why they withdrew.
We are very happy with our relationship with our teammates down in South Carolina.
The site is technically, and on a manufacturing, certification, engineering basis, doing very well.
I'm very pleased with its progress.
But I also highly value the relationship that we all have with our employees in Puget Sound.
One group has a union, one doesn't.
We prefer to have a direct relationship with our employees, but when they choose to have a union, we want to work with them.
So it's not either/or.
Our task is to work with both environments, and to grow them to their potential.
But very happy with developments down in South Carolina.
That place is really doing well.
Didn't see Airbus' comments today, but I think our supply chain has anticipated robust growth, probably from both of us.
They see the orders in the backlogs, as we do.
We spend a lot of time talking with our supply chain, and working on them with readiness ---+ on readiness issues, I should say.
We've announced 52.
They count a little bit differently.
60 is not ---+ is roughly the same as 52, 54.
I've forgotten how the math works.
But I think the supply chain is ready, and we've spent a lot of time investing in getting them ready.
Good morning, <UNK>.
I'm not sure about the last number.
There's no anticipated charge here, <UNK>.
Our estimate ---+
No.
I don't know where they got it from.
Our estimates have taken all that into consideration on first flight, as well as completing the balance of the airplanes.
Certainly, there's work left to be done here, and we're going to get the airplane into the air sometime this summer.
And that will be fully militarized, and we'll see how that goes, and continue to execute the balance of the program.
But there's no change to the financial position on the program at this point.
Operator, we have time for one last question.
Yes.
Yes, good morning.
Sure.
Yes, I think that all the problems are not resolved.
We do have a high confidence in the plan to resolve them.
We have ---+ and it's because our people are deeply involved with them in the resolution.
We don't anticipate a lot of it being worked through until the end of the second quarter.
But we've all figured out a way to work together, that it's not going to disrupt our production plans.
And we're pleased to see their response now to getting this fixed.
That concludes our earnings call.
Again, for members of the media, if you have further questions, please call our media relations team at 312-544-2002.
Thank you.
