Boeing reports tanker charge in defense business

By Marjorie Censer / July 29, 2020 at 12:05 PM

Boeing said today it recorded a $151 million charge during the most recent quarter on its KC-46A tanker program "primarily driven by additional fixed cost allocation resulting from lower commercial airplane production volume due to COVID-19."

The defense business reported total quarterly sales of $6.6 billion, essentially flat when compared to the same three-month period a year earlier.

The unit's quarterly profit totaled $600 million, down 38% from the prior year.

In a letter to employees today, David Calhoun, Boeing's chief executive, said the company, which announced a workforce reduction earlier this year, will have to continue to assess the size of its workforce.

However, the "diversity of our portfolio and our government services, defense and space programs provide some stability in the near term as we take these tough but necessary steps," he said.