Boeing Takes Additional Charges Related To KC-46 Quality Issue: Report

Boeing Co BA will have to incur extra costs for the KC-46 tanker program as a result of a central fuel tank supplier quality issue.
Boeing Chief Financial Officer Brian West did not disclose the precise value of the additional charges, Reuters reported.
Earlier this month, Boeing's 767 freighter and KC-46 tanker deliveries were postponed because a supplier had not completed processes, including cleaning and paint adhesion on the center fuel tanks.
"We know how to fix this," West stated. "But now we have to go implement the fix both on production airplanes and some airplanes that are in the fleet."
Also read: Boeing Argues 737 Max Passengers Didn't Feel Pain During Crash: Why 200 Milliseconds Matter In Lawsuit
The report claims that although Boeing's finance chief did not identify the amount of the additional charges, this would negatively impact margins in its defense business.
Price Action: BA shares are trading lower by 2.32% at $199.95 on the last check Wednesday.
Photo Via Company