Plus   Neg

Boeing Expects Charge, High Costs In Q2 Due To 737 MAX Grounding - Quick Facts

Boeing (BA) expects to record an after-tax charge of $4.9 billion or $8.74 per share related to an estimate of potential concessions and other considerations to customers for disruptions related to the 737 MAX grounding and associated delivery delays.

Boeing expects this charge to result in a $5.6 billion reduction of revenue and pre-tax earnings in the second quarter.

Boeing also stated that estimated costs to produce the aircraft in the 737 accounting quantity increased by $1.7 billion in second quarter, primarily due to higher costs associated with a longer than expected reduction in the production rate.

The company expects increased 737 program costs to reduce the margin of the 737 program in the second quarter and in future quarters.

Boeing said it has assumed, for purposes of the second-quarter financial results, that regulatory approval of 737 MAX return to service in the U.S. and other jurisdictions begins early in the fourth quarter 2019

"We remain focused on safely returning the 737 MAX to service," said Boeing Chairman, President and CEO Dennis Muilenburg.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Tech giant Apple Inc. (AAPL) is reportedly planning to begin assembling a new low-cost iPhone 9 in February. According to Bloomberg, the Cupertino, California-based company is expected to officially unveil the new phone as early as March. The assembly work for the new handset will be split among Taiwan-based... A Louisville, Kentucky-based franchise of Wendy's and Fazoli's restaurants, was ordered by the federal government to pay a civil penalty of $157,114 for violating child labor laws. The U.S. Department of Labor's Wage and Hour Division or WHD said its investigation found that Manna Inc. violated child labor requirements of the Fair Labor Standards Act at 99 Wendy's and Fazoli's restaurants. Tesla's market capitalization briefly crept up the $100 billion mark in extended trading on Tuesday, making it the first publicly-listed automaker in the U.S. to achieve the feat. Tesla's stock gained 7.2 percent to close Tuesday's regular trading session at $547.20, and rose to $555 in after-hours trading, pushing the luxury electric car maker's market valuation to more than $100 billion.
Follow RTT