Boeing takes $2.8 bln hit in defense business, keeps cash flow goal

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Boeing Co's ailing defense unit on Wednesday recorded a $2.8 billion charge, but the U.S. planemaker stuck to its forecast of generating cash this year despite struggling to raise commercial jet production due to labor and supply shortages.

The Boeing logo is seen on the side of a Boeing 737 MAX at the Farnborough International Airshow, in Farnborough, Britain, July 20, 2022. REUTERS/Peter Cziborraailing defense unit on Wednesday recorded a $2.8 billion charge, but the U.S. planemaker stuck to its forecast of generating cash this year despite struggling to raise commercial jet production due to labor and supply shortages.

However, rising cost pressures over the last few months have hampered fixed-price contracts for U.S. aerospace and defense firms, prompting an industry bodyThe planemaker said it took charges on its VC-25B program, commonly known as Air Force One, as well as on the KC-46A refueling tanker program, among others.

"We've also added more than 10,000 employees this year and are investing in their training and development to accelerate the experience curve and improve productivity," Calhoun said.

 

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