The aerospace giant chose to forego overall financial guidance for 2024 as it struggles with safety concerns in its commercial business.
By Michael Marrow“These are disappointing results in the quarter and year to date. This performance is below our expectations and we acknowledge that we aren’t as far along in this recovery as we expected to be at this stage,” said Chief Financial Officer Brian West.
By Michael MarrowBoeing Chief Financial Officer Brian West previously warned that it could take several years until the company’s struggling defense sector turns a profit.
By Michael MarrowA new watchdog report warns of a year-long delay for America’s next ICBM, as well as potential schedule slips for F-15EX, KC-46A and the Air Force One replacement.
By Michael MarrowThe troubled tanker’s charges are now up to over $7 billion as Boeing wrestles to get its fixed-price development contracts on track.
By Michael MarrowThe changes, including halving business divisions, come as Boeing’s defense sector finds itself at a crossroads, with new leadership contending with systemic financial issues tied to its large number of fixed-price contracts with the US government.
By Valerie Insinna“We’re not embarrassed by [the cost overruns]; they are what they are. And we intend to deliver against these contracts and satisfy our customers,” said Boeing CEO Dave Calhoun.
By Valerie InsinnaDespite this quarter’s losses, Boeing CEO Dave Calhoun said he was “more bullish” on the prospect of international sales now than he had been when he first became CEO in 2020, specifically for the KC-46 tanker and MQ-25.
By Valerie InsinnaSo far, Boeing has lost $1.1 billion dollars on its original $3.9 billion fixed-price development contract for the VC-25B.
By Valerie Insinna“We have learned a ton of lessons, especially around contracting,” said Boeing Defense CEO Ted Cobert. “We’re working together to make sure that anything we do going forward will heighten the probability of getting things done in a timely manner.”
By Valerie Insinna“You get this dynamic, where [companies] become very focused on, ‘We need to finish, we’re going to finish what’s in the contract, anything that appears to us to be in any way, shape, or form not 100% required explicitly in the contract is an extra bill,'” Air Force acquisition executive Andrew Hunter said.
By Valerie InsinnaGAO found delays in more than half of the programs it studied. Also, 4-pound birds are a problem.
By Aaron MehtaThe major driver of the delay is the bankruptcy of GDC Technics, Boeing’s original subcontractor for the VC-25B’s interiors, and the hiring of a new interior supplier, said Andrew Hunter, the Air Force’s assistant secretary for acquisition, technology and logistics.
By Valerie Insinna“Air Force One, I’m just going to call a very unique moment, a very unique negotiation, a very unique set of risks that Boeing probably shouldn’t have taken,” Boeing CEO Dave Calhoun said. “But we are where we are, and we’re going to deliver great airplanes. And we’re going to recognize the costs associated with it.”
By Valerie Insinna