Boeing wracked up a further $329 million charge for its troubled KC-46 aerial refueling tanker program. The company's stock fell. Roselle Chen reports.
Being reported third quarter results. It beat forecasts for earnings per share. And its margins rose. The company also raised its full-year outlook. But it racked up a charge for its troubled aerial refueling tanker program. Boeing shares have been up almost 70 percent this year, but they fell after the open on Wednesday. Max Wolff, chief economist at hedge fund DTA. (SOUNDBITE) MAX WOLFF, CHIEF ECONOMIST, DISRUPTIVE TECHNOLOGY ADVISERS (ENGLISH) SAYING: "We saw a pretty good quarter, but we did see a big charge off for some tanker related programs, which drew a little bit of the enthusiasm away from the name. Longer term we like Boeing. But it's one to watch, and it may very well get caught up in something outside its control, which is about global trade, and that particular headwind looks like it's worth noting as this company tries to power forward." Boeing is in a heated trade dispute with Bombardier. It complained that the Canadian plane maker sells its C Series jets in the U.S. for (as it called it ) "absurdly low prices." As a result, the U.S. Commerce Department recommended a 300 percent tariff on Bombardier's aircraft. That, in turn, put Boeing's $5 billion deal on selling its F-18 planes to the Canadian government in jeopardy. Boeing is also up in the air with its $16 billion contract to sell planes to IranAir. That's because of President Donald Trump's hawkish new approach towards Tehran.