Rockwell Collins says plane maker owes $40 millionIn a rare public dust-up between two of the biggest collaborators in the aerospace industry, a major supplier to Boeing Co. said the world’s largest plane maker was behind on tens of millions dollars in payments due at the end of last month.
“Boeing is delinquent and Boeing has contributed to some of our underperformance here this quarter in cash flow, which is disappointing, but we’re working that with them,” said Kelly Ortberg, chief executive of Rockwell Collins Inc., during a call discussing the company’s third-quarter results Monday.
Rockwell’s chief financial officer, Patrick Allen, said Boeing owes the aerospace electronics company $30 million to $40 million that was due in the quarter ended June 30.
Boeing historically has paid its contracts at a 30-day frequency. Boeing declines to say what changes it is making to its payment terms, but industry officials say it is adjusting to 60, 90 or even 120 days, with many of its suppliers.
“It’s not really a contractual issue. It’s just they haven’t paid us,” said Mr. Allen.
