Boeing posts $3.3B loss on costs tied to defense programs

[edwest4]

How is this possible? The Department of Defense is always asking for more money. I think I'd fall over dead if I ever heard a DoD official say, "We're asking for less money this year."

Boeing posts $3.3B loss on costs tied to defense programs

Boeing reported a surprising $3.3 billion loss for the third quarter Wednesday, as revenue fell short of expectations and it took huge losses for fixed-cost government programs including new Air Force One presidential jets.

apnews.com

 

[FighterJock]

That is bad news for Boeing a $3.3 billion loss partly due to new Ari Force One jets. Any ideas as to what happens now?

 

[trose213]

That is bad news for Boeing a $3.3 billion loss partly due to new Ari Force One jets. Any ideas as to what happens now?

Fixed pricing, it's all about project estimates exceeding the current contracts, so it's mostly paper money.

 

[alertken]

tr: what do you mean? Yes, a loss can reduce tax liability, and an upfront loss on a program that goes into volume production can become cascading profit downstream - see most Commercial Airplane products...but no Co will bounce back to prosperity if losses continue.