West called the third quarter results disappointing and below expectations. “We fully expect to see recovery in these areas as we improve execution, deliver next generation capabilities, and roll into new contracts with stronger underwriting disciplines that more accurately reflect the prevailing economic conditions.”
In these fighter jet and satellite programs, Boeing “took on fixed-price production contracts in a pre-pandemic environment with real technical innovation that we’re working our way through,” West said. He said Boeing has not signed any new fixed-price development contracts in this segment and it does not intend to. West said specific fighter jet and satellite programs have negatively impacted margins the past several quarters. This is not going to be one that’s going to be dragged out for a long period of time.” “It’s very innovative, and we have to work our way through, and we will in short order. “We have additional work to do to make this constellation very robust with new technology,” West said.
