NEW YORK (S&P Global Ratings) April 28, 2022--S&P Global Ratings said today that Boeing Co.'s reported first-quarter losses were largely due to cost overruns stemming from COVID, supply chain constraints, and inflation. Pre-tax losses came in at $1.6 billion, down from $4.7 billion in fourth-quarter 2021 but up from $572 million in first-quarter 2021. The cost overruns came from charges related to fixed-price defense programs, including the VC-25B, T-7A and MQ-25 aircraft. Management noted that the programs were considered low profit when booked, but COVID, supply chain, and inflation-related factors raised costs. An additional, much smaller, charge reflected a write-down related to Boeing's exit from Russia. Two milestones key to future performance remain unresolved: when U.S. regulators will allow resumed
