Boeing Co. said Friday that it will book a $536 million
after-tax charge in its recently ended quarter as it spends more on
its KC-46 aerial refueling tanker program.
Boeing said it has encountered higher engineering and
manufacturing costs as it reworks the airplane's integrated fuel
system.
On a pretax basis, Boeing said its commercial airplanes segment
will report a $513 million charge, and its military aircraft
segment will report a $322 million charge.
Boeing will report results for the second quarter on July
22.
The company said it is disappointed with the charge, but said it
is working to meet its commitment to delivering the initial 18
tankers to the U.S. Air Force by August 2017.
Shares fell 1% in premarket trading.
This isn't the first charge Boeing has taken on the program.
Last July, Boeing reported a $425 million pretax charge to fix
wiring problems on the tanker.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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