Reuters
Boeing to take charges on KC-46 tanker over quality issue -finance chief
WASHINGTON (Reuters) -Boeing Co. will take additional charges to the KC-46 tanker program due to a supplier quality issue with the center fuel tank, the company’s finance chief said Wednesday. Boeing Chief Financial Officer Brian West did not disclose the precise value of the additional charges, which will be announced as part of the company’s first quarter earnings, but margins at Boeing’s defense business would be negative as a result. While 767 freighter deliveries “will recover in the second quarter,” tanker deliveries will take longer “but we will recover the year,” West said at the Bank of America Global Industrials Conference, adding that the issue would not impact Boeing’s annual cash flow target of $3 billion to $5 billion in 2023.
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