Boeing to Record Charges From Jet Programs
July 21 2016 - 6:00PM
Dow Jones News
Boeing Co. on Thursday revealed more expensive stumbles with the
production of new commercial and military jets, saying it would
take $2.1 billion in charges in its coming earnings.
The after-tax charges, which have been expected by some industry
analysts, stem from delays to developing its new Air Force
refueling tanker, demand concerns about its biggest jetliner, the
747-8 jumbo, and the original high costs of its 787 Dreamliner, its
most advanced jetliner.
The charges will wipe out $3.23 a share in its second-quarter
earnings, which it is schedule to report on July 27.
The latest charges are part of a yearslong hangover of high
initial development costs on crucial new programs, as well as
continued struggles getting its tanker completed for the U.S. Air
Force, its biggest defense contract.
The struggles have diluted the benefits of a surge in orders and
deliveries of passenger planes in the past decade.
Write to Jon Ostrower at jon.ostrower@wsj.com
(END) Dow Jones Newswires
July 21, 2016 17:45 ET (21:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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