Wednesday, August 10, 2022
  • About us
    • Write for us
    • Disclaimer
    • Terms of use
    • Privacy Policy
  • RSS Feeds
  • Advertise with us
  • Contact us
DefenceTalk
  • Home
  • Defense News
    • Defense & Geopolitics News
    • War Conflicts News
    • Army News
    • Air Force News
    • Navy News
    • Missiles Systems News
    • Nuclear Weapons
    • Defense Technology
    • Cybersecurity News
  • Military Photos
  • Defense Forum
  • Military Videos
  • Military Weapon Systems
    • Weapon Systems
    • Reports
No Result
View All Result
  • Home
  • Defense News
    • Defense & Geopolitics News
    • War Conflicts News
    • Army News
    • Air Force News
    • Navy News
    • Missiles Systems News
    • Nuclear Weapons
    • Defense Technology
    • Cybersecurity News
  • Military Photos
  • Defense Forum
  • Military Videos
  • Military Weapon Systems
    • Weapon Systems
    • Reports
No Result
View All Result
DefenceTalk
No Result
View All Result

Boeing hit by $2.1 bn in tanker, production costs

by Agence France-Presse
July 22, 2016
in Air Force News
1 min read
0
Boeing KC-46A Tanker

Boeing’s second KC-46 tanker (EMD-4) takes off from Paine Field in Everett on its first flight. The tanker landed later at Boeing Field in Seattle and will initially be used to test mission system avionics and exterior lighting. Photo credit: Gail Hanusa, Boeing.

14
VIEWS

Boeing warned Thursday that second-quarter earnings will be hit by $2.1 billion in unexpected after tax costs, including its third charge in a year on a large Air Force tanker contract.

Boeing said its quarterly earnings release on July 27 will recognize $393 million in costs associated with the KC-46 tanker program, a next-generation military refueling aircraft.

The latest costs are to address a load issue identified during test flights, the company said.

These expenses follows earlier tanker charges of $156 million in April and $536 million in July 2015.

“This additional investment in the KC-46 supports the delivery timeline for the initial production aircraft and our transition to full-rate production,” said Boeing chief executive Dennis Muilenburg.

“We remain confident in the long-term value of the KC-46 for our customers and our shareholders.”

Boeing also booked $847 million in costs after deciding not to upgrade two Boeing 787s that been used in flight and ground testing. Boeing will now account for the planes as an expense rather than inventory.

Finally, the aerospace giant also allotted for $814 million in costs due to a lower production schedule for its 747-8 cargo plane. The charge reflects lower estimated revenue on future sales.

The announcement of the unanticipated charges to earnings sent Boeing shares down 1.2 percent to $132.00 in after-hours trade.

“These are the right, proactive decisions to strengthen our business going forward,” Muilenburg said.

Tags: boeingcostKC-46productiontanker
Previous Post

A-10s Deploy to Slovakia for Cross-Border Training

Next Post

Greece Launches P-3B Orion Upgrade

Related Posts

Philippines cancels Russia helicopter deal over US sanctions

Philippines cancels Russia helicopter deal over US sanctions

August 10, 2022

The Philippines has scrapped an order for 16 Russian military helicopters, an official confirmed Wednesday, following reports former president Rodrigo...

Five dead as Romania chopper crashes, fighter jet missing

Two pilots killed as Soviet-era fighter jet crashes in India

July 30, 2022

Two pilots have been killed in India after a Soviet-era fighter jet crashed during a training sortie, the air force...

Next Post
Greece Launches P-3B Orion Upgrade

Greece Launches P-3B Orion Upgrade

Latest Defense News

Philippines cancels Russia helicopter deal over US sanctions

Philippines cancels Russia helicopter deal over US sanctions

August 10, 2022
West eyes more pressure on Russia after Ukraine nuclear plant attack

13 killed in Russian strikes near nuclear plant

August 10, 2022
Iran to hold new wargames in key oil waterway

Iran navy says repelled attack on ship in Red Sea

August 10, 2022
China will ‘take the gloves off’ over Taiwan: media

Taiwan FM says China using drills to ‘prepare for invasion’

August 10, 2022
US moves closer to retaliation over hacking as cyber woes grow

Finnish parliament website targeted in cyber attack

August 10, 2022
People displaced by the fighting in Burma's Laukai approach a rescue convoy

Mounting proof of crimes against humanity in Myanmar: UN probe

August 10, 2022

Defense Forum Discussions

  • Australian Army Discussions and Updates
  • Royal New Zealand Air Force
  • Romania and Vlad the impaler
  • The Russian-Ukrainian War Thread
  • Royal Australian Navy Discussions and Updates 2.0
  • Indonesian Aero News
  • Space X Boca Chico Build & Launch Facility.
  • Iraqi Air Force and Air Defense
  • The best strategy to defending Singapore Island
  • Naval Ship & Submarine Propulsion Systems
DefenceTalk

© 2003-2020 DefenceTalk.com

Navigate Site

  • Defence Forum
  • Military Photos
  • RSS Feeds
  • About us
  • Advertise with us
  • Contact us

Follow Us

No Result
View All Result
  • Home
  • Defense News
    • Defense & Geopolitics News
    • War Conflicts News
    • Army News
    • Air Force News
    • Navy News
    • Missiles Systems News
    • Nuclear Weapons
    • Defense Technology
    • Cybersecurity News
  • Military Photos
  • Defense Forum
  • Military Videos
  • Military Weapon Systems
    • Weapon Systems
    • Reports

© 2003-2020 DefenceTalk.com