Boeing takes $3bn hit on 787, 747 and KC-46
Boeing takes $3bn hit on 787, 747 and KC-46
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| Staff writer 240 mots

Boeing takes $3bn hit on 787, 747 and KC-46

Boeing says it will recognize an impact to earnings across three programmes when it announces second-quarter 2016 results on 27th July. The company has announced after-tax charges totaling $2.1bn on the 787, 747-8 and KC-46 programmes. On a pre-tax basis, the charges amount to $3bn.

On the 787 programme, the two remaining unsold flight test aircraft that were scheduled to be introduced into the modification line for sale to customers are being written off at a cost of $847m.

To account for current and anticipated weakness in the air cargo market, the company plans to continue producing 747-8 aircraft at a rate of 0.5 per month and no longer increase the production rate to 1.0 per month in 2019. An $814m after-tax charge on the 747 programme reflects a lower estimated total of 747-8 Freighter aircraft to be produced and lower estimated revenues on future aircraft sales.

The company will also recognize a $393m after-tax charge on the KC-46 Tanker programme — the fourth such charge in two years — reflecting “programme schedule and technical challenges”, including implementation of the hardware solution to resolve the refueling boom axial load issue identified during flight testing.

In total, the company will record an after-tax earnings impact of $2.1bn. On a pretax basis Boeing Commercial Airplanes will record an earnings impact totaling $2.78bn and the Boeing Military Aircraft segment of Boeing Defense, Space & Security will report an earnings impact of $219m.

The company reaffirmed guidance for 2016 revenue and cash.

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