Boeing defense business margins similar to first quarter

Boeing defense business margins similar to first quarter

Margins at Boeing's defense unit will look similar in the second quarter to its first-quarter results, said Boeing Defense CEO Ted Colbert, the company's chief executive.

Margins at its defense unit were negative in the first quarter, as Boeing recorded a $245 million pre-tax charge on the KC - 46 tanker program. Colbert declined to say whether Boeing would take another charge over the KC-46, which has logged more than $7 billion in losses.

We re still assessing where the numbers are going to fall, he said in a press conference ahead of the Paris Airshow. There is a ton of activity to improve performance at Boeing's defense unit, and it will take time for improvements to be seen, he said.

Colbert said Boeing remains committed to starting every program the right way, including a contract structure that gives Boeing a fair shake and a healthy business. The defense unit's vast number of fixed-price development programs - including KC - 46, the T - 7 training jet and new Air Force One planes - have resulted in billions of dollars in losses.

A supplier problem has caused delivery of the KC-46 to the air force, and the company has yet to ship a reworked KC-46 to the Air Force. Colbert declined to say when its next tanker will be delivered, adding: ''It's a question of when we'll deliver it''.