Boeing takes $2.8-billion hit in defence business, but keeps cash flow goal

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Cost overruns in Boeing’s defence, space and security segment have hobbled a recovery for the company attempting to come out of successive crises

ailing defence unit on Wednesday recorded a $2.8-billion charge, but the U.S. plane maker stuck to its forecast of generating cash this year despite struggling to raise commercial jet production due to labour and supply shortages.

That helped it generate a free cash flow of $2.9-billion in the quarter. It had recorded a cash burn of $507-million in the same period a year ago. “Our revenue and earnings were significantly impacted by losses on fixed-price development programs in our defence business, driven by higher estimated manufacturing and supply chain costs,” Boeing Chief Executive Dave Calhoun said in a message to employees.

“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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Oh thank GOD they hit their profit expectations, i was so nervous for the board of directora at Boeing! Guys like WHAT IF THEY DIDNT GET THEIR BONUSES THIS YEAR OMG OMG CRAZY IKR like how would they buy that other, other superyacht?!?!

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