Oct 26 (Reuters) – Boeing Co’s (BA.N) ailing defense business 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.
Cost overruns at Boeing’s defense, space and security unit have hobbled a recovery for the company as it attempts to come out of successive crises by cashing in on rising air travel demand.
The planemaker said it took charges on its Air Force One and refueling tanker program, among others.
“Our revenue and earnings were significantly impacted by losses on fixed-price development programs in our defense business, driven by higher estimated manufacturing and supply chain costs,” Boeing Chief Executive Dave Calhoun said in a message to employees.
Boeing’s shares were down 0.5% at $145.92 in pre-market trade shortly before the opening bell.
Rising cost pressures over the last…