UPDATE: Boeing (BA) Looking at $700M+ Hit as Costs in USAF Tanker Program Accumulate
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(Updated - February 8, 2013 11:10 AM EST)
Boeing (NYSE: BA) is pressured on the session Friday following reports it might take a big hit as work on a U.S. Air Force program goes into overtime.
The USAF said cost overruns on its KC-46A tanker program are about $300 million more than previously estimated, now totaling $700 million. New estimates come from a review of trends in Boeing's costs and schedule data as part of the company's "earned value management" system.
Boeing is responsible for all costs that exceed the contracts $4.9 billion ceiling, putting total cost of the project now north of $5.6 billion. The contract is part of a larger, 179-aircraft, $51.7 billion program.
Shares of Being are down about 1 percent midday.
Boeing (NYSE: BA) is pressured on the session Friday following reports it might take a big hit as work on a U.S. Air Force program goes into overtime.
The USAF said cost overruns on its KC-46A tanker program are about $300 million more than previously estimated, now totaling $700 million. New estimates come from a review of trends in Boeing's costs and schedule data as part of the company's "earned value management" system.
Boeing is responsible for all costs that exceed the contracts $4.9 billion ceiling, putting total cost of the project now north of $5.6 billion. The contract is part of a larger, 179-aircraft, $51.7 billion program.
Shares of Being are down about 1 percent midday.
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