WASHINGTON — A $5 billion charge on Boeing’s commercial 777X jetliner program stole the spotlight from the company’s defense segment during third quarter earnings today, resulting in little attention from Wall Street even as a strike at key fighter and weapon production lines threatens to spill into the fourth month.
Boeing’s defense unit posted positive margins for the third quarter in a row despite an ongoing machinist strike at its St. Louis, Mo.-based locations, which overwhelmingly focus on its defense business. However, it logged a new $149 million reach forward loss on KC-46 tankers“ largely due to higher production cost allocations resulting from the decision to slow 777X production plans,” according to regulatory filings for the quarter.
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Source breakingdefense.com
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