The Seattle Times
SEATTLE — Boeing said Thursday it will take more than $2 billion in after-tax write-offs on three jet programs.
The biggest is a non-cash after-tax charge of $847 million ($1.33 per share) it attributed to two of the first 787 test-flight aircraft it has decided not to refurbish and sell.
Nearly as large is an $814 million after-tax charge ($1.28 per share) on the 747 program, reflecting “a lower estimated total of 747-8 Freighter aircraft to be produced in the program accounting quantity and lower estimated revenues on future aircraft sales.”
Finally, Boeing said it will take a $393 million after-tax charge ($0.62 per share) on the KC-46 Tanker program for schedule and technical challenges, including delays in the certification process and the cost of beginning production of the planes while still conducting late-stage development testing.
In April the company announced a separate set of charges, on some of the same programs, that caused it to miss analysts’ profit estimates for the first time in five years. Those charges of $313 million were for cost overruns on building the Air Force refueling tankers as well as an expected shortfall in revenue from the sagging 747-8 jumbo jet program.
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