RE:RE:RE:RE:RE:RE:RBC: Surprised by the market reactionHi Luke.
I guess the only way to describe what their intention is is, to follow what's they're doing with production. They've expanded production, as per guidance. They probably have a plan to become the best, and strongest Business Jet OEM in the Industry. They're producing more planes than Gulfstream. and they're delivering everything they said they will produce. So the Increase in production is justified. T
his production increase is two fold. One reason is, to deliverer everything they've said they would,
to gain the trust from their customers, and
second, to make more money to pay off the LTD. By selling more planes & Servicing everything they produce seamlessly, they will achieve both goals. But they got more heavily into the supply chain by over increasing the production, and one of their suppliers that produces the Globals is NOT Ramping up as well. That Global supplier though, isn't ramping up as fast obviously, so they are giving that supplier a chance, or time to produce more in 2024, so the Supplier can catch up. Obviously, they have to UP-FRONT the parts cost or payment to that supplier as well, to help him to catch up with the extra production.
Whether they've got a big order or not, is not as important as the flow of production for the company. They just want a steady amount of Globals out the door, every year for their customers, to
GAIN THEIR CUSTOMERS TRUST, that THEY CAN DELIVER.
This trust, and ability to deliver more & consistantly will likely generate more orders from their customers.
This idea of underpromising & over delivering is a good tool that they are using, to bring excitement to the stock and to gain the needed respect/trust from their customers.
Lukegermany wrote: Great Post bbd...
I asking myself why they are expand their production faster than they want to Do it in their guidance. Does it is only because they have to accelarate the Producer Planes.. morgen challenger less globals..or did they know that they will get a big order somewhere this year..than all the FCF problem would gone in one second..i hope that they get that order and get a nice upfront payment to pay the debt faster than we are thinking.
I am Sure that they cants talk about it but the order will come i think..than the fcf fear would dissapear fast..imho they are only positive surprises in 2024..because they Tell us the minimum in 2024..underpromise over delivery will go on