SAj Ahmad's lack of understanding SEC rules

Fact Checker finally got a copy of Saj Ahmad's "protected" posting on the Pratt & Whtiney geared turbo fan and it is stunning in its lack of understanding.

Ahmad relies on Pratt & Whtiney including what is called "Forward Looking Statements" in the press release that are required under US securities laws to attack P&W claims on fuel efficiency.

“It comes as a surprise to see Pratt & Whitney caveat all of its fuel burn claims from once cited as "16%" to now "double digit" in its press releases”, Ahmad writes.

If he is surprised, he hasn't been reading his own writings. He has been whinging on about "double-digit" references for years.

He then repeats P&W's Forward Looking statement:

"Important factors that could cause actual results to differ materially from those anticipated or implied in forward looking statements include changes in the health of the global economy and the strength of end market demand in the aerospace industry; as well as company specific items including the ability to achieve cost reductions at planned levels; challenges in the design, development, production and support of advanced technologies including this engine, and new products including the engine discussed in this press release; and delays and disruption in delivery of materials and services from suppliers."

“Why else would such a forward looking statement contain, what effectively amount to get out clauses, if the technology suite in the GTF was or is as good as Pratt & Whitney claim to be”? Ahmad writes.

This shows a remarkable lack of understanding (or worse, a willful desire to ignore) US securities laws.

This is a typical Forward Looking statement from one of the most successful companies in the world, Southwest Airlines"

 

"This website contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on, and include statements about, the Company"s beliefs, intentions, expectations, and strategies for the future. Specific forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and include, without limitation, words such as "plans," "believes," "expects," "anticipates," "may," "could," "intends," "goal," "will," "should," and similar expressions and variations thereof. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed in or indicated by the Company"s forward-looking statements. Factors that could cause these differences include, but are not limited to, the factors described under the heading "Risk Factors" in the Company's most recent Annual Report on Form 10-K, and in other filings, the press releases and materials contained on this website. The Company assumes no obligation to update any forward-looking statements as a result of new information, future events, or developments, except as required by federal securities laws."

There is very similar language between Southwest and P&W.

If this example is not enough, then look at the Forward Looking statement of Boeing and note the similarities between the statements. Of course, Saj loves all things Boeing but this doesn't come in for the same sort of whinging directed at P&W.

"Forward-Looking Statements
This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  Words such as "may," "should," "expects," "intends," "projects," "plans," "believes," "estimates," "targets," "anticipates," and similar expressions are used to identify these forward-looking statements.  Examples of forward-looking statements include statements relating to our future financial condition and operating results, as well as any other statement that does not directly relate to any historical or current fact.  Forward-looking statements are based on our current expectations and assumptions, which may not prove to be accurate.  These statements are not guarantees and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements.  Among these factors are risks related to: (1) general conditions in the economy and our industry, including those due to regulatory changes; (2) our reliance on our commercial customers, our suppliers and the worldwide market; (3) our commercial development programs, including the 787 and 747-8 commercial aircraft programs; (4) changing acquisition priorities of the U.S. government; (5) our dependence on U.S. government contracts; (6) our reliance on fixed-price contracts; (7) our reliance on cost-type contracts; (8) uncertainties concerning contracts that include in-orbit incentive payments; (9) changes in accounting estimates; (10) changes in the competitive landscape in our markets; (11) our non-U.S. operations, including sales to non-U.S. customers; (12) potential adverse developments in new or pending litigation and/or government investigations; (13) customer and aircraft concentration in Boeing Capital Corporation's customer financing portfolio; (14) changes in our ability to obtain debt on commercially reasonable terms and at competitive rates in order to fund our operations and contractual commitments; (15) realizing the anticipated benefits of mergers, acquisitions, joint ventures, strategic alliances or divestitures; (16) the adequacy of our insurance coverage to cover significant risk exposures; (17) potential business disruptions related to physical security threats, information technology attacks or natural disasters; (18) work stoppages or other labor disruptions; (19) significant changes in discount rates and actual investment return on pension assets; and (20) potential environmental liabilities".