Boeing reports sales growth in its defense business

By Marjorie Censer / April 28, 2021 at 12:20 PM

Boeing said today sales in the most recent quarter in its defense, space and security unit totaled $7.2 billion, up 19% from the same three-month period a year earlier.

The company attributed the boost to "higher KC-46A Tanker revenue due to orders for 27 aircraft and the absence of charges related to the program."

However, the business recorded a pre-tax charge of $318 million on the VC-25B Air Force One replacement program, "largely due to COVID-19 impacts and performance issues at a key supplier."

The unit reported quarterly profit of $405 million, up from a $191 million loss during the same period the prior year.

Meanwhile, Boeing announced earlier this month its board has extended the company's age-65 standard retirement to age 70 for David Calhoun, Boeing's chief executive, who is 64.

"While the Board's action extends the mandatory retirement age for Mr. Calhoun to April 1, 2028, there is no fixed term associated with his employment," the company said.

Boeing also said Chief Financial Officer Greg Smith will retire July 9. The company is undertaking a search process for his successor.