Boeing Defense Margins To Remain Flat In Second Quarter

(Reuters) – Margins at Boeing’s defense unit will look similar in the second quarter to its first-quarter results, Boeing Defense CEO Ted Colbert said Sunday.

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.

“We’re still assessing where the numbers are going to fall,” Colbert told reporters in a briefing ahead of the Paris Airshow. He added that there is a “ton of activity” to improve performance at Boeing’s defense unit but that it will take time for improvements to be seen.

(Reporting by Valerie Insinna; Editing by Hugh Lawson)