Boeing defense reports $275 million tanker charge

By Marjorie Censer, Courtney Albon / January 27, 2021 at 12:45 PM

Boeing said today its defense business recorded a $275 million pre-tax charge last quarter related to the KC-46 tanker program. The charge brings Boeing’s total charges to $5.1 billion -- higher than the $4.9 billion ceiling set in its development contract.

The company attributed the charge to "production inefficiencies including impacts of COVID-19 disruption."

The charge is just the latest for Boeing, which has reported billions in out-of-pocket costs related to the program.

Meanwhile, Boeing reported today its defense business generated sales of $6.8 billion in the most recent quarter, up 14% from the same three-month period a year earlier. The company attributed the growth to "higher volume on fighter programs and the rest of the portfolio as well as a charge on the Commercial Crew program in the same period last year."

However, sales for the year were roughly flat at $26.3 billion.