Northrop Grumman’s financial woes are continuing to mount due to higher manufacturing costs associated with its B-21 Raider stealth bomber program. The loss, attributed to the increased production of long-lead components and other factors, brings the total loss on the program to nearly $1.2 billion since Northrop Grumman disclosed its initial losses last year.
The Air Force has revealed little about the costs of the B-21 program, with an estimated overall cost of $203 billion in Fiscal Year 2019 dollars for development, production, and sustaining operations. However, as the military increasingly seeks to acquire more B-21s, the total cost is expected to rise significantly.
The first B-21 made its maiden voyage last year, and test flights are currently underway from Edwards Air Force Base in California. Northrop Grumman is working to complete the engineering and manufacturing development phase of the program, with the company now carrying out performance tests to prove that the aircraft meets its objectives.
While the losses disclosed today by Northrop Grumman are bad news in the short term, the company believes that once production ramps up, the program will become highly profitable. The Air Force’s plan to acquire as many as 145 B-21s has raised concerns about the impact on the total cost of the program, and it remains to be seen whether Congress will allow the costs to rise.
The B-21 is a crucial part of the US military’s nuclear deterrent triad, and its development is expected to provide valuable new capabilities beyond traditional bomber roles. Despite the current setbacks, Northrop Grumman is confident that the program will ultimately succeed, with the company projecting zero profitability currently but expecting significant profits once production reaches full scale.
Source: https://www.twz.com/air/rising-b-21-raider-stealth-bomber-costs-hit-northrop-grumman