Cobham to take £160m hit from Boeing dispute

Aerospace engineer Cobham said it would take a £160m hit from its dispute with Boeing over the KC-46 aerial refuelling contract.

The company said £86m would relate to the settlement and the rest reported as additional costs to complete the retained contract.

It added that it would offset amounts relating to £37m in hose and drogue invoices that have been withheld by Boeing, resulting in a £49m balancing payment to be paid to Boeing during the first half of 2019.

Boeing has ended its payment withhold against Cobham invoices, Cobham said.