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.