Boeing to Issue $2.05B Charge, $393M KC-46 Writedown in 2Q Earnings

KC46ABoeing (NYSE: BA) will take $2.05 billion in total after-tax charges on second quarter earnings that include a $393 million writedown on the KC-46 refueling tanker for the Air Force when the airplane manufacturer reports April-June results Wednesday.

The company said Thursday the charges amount to $3.23 in earnings per share with 63 cents from the tanker on prior delays due to technical issues with the refueling boom.

Boeing has recorded almost $1.9 billion in total charges on the KC-46 Pegasus as the program faces a decision in August from the Air Force on whether to start low-rate initial production after the tanker completed the last of six flights for the Milestone C decision July 15.

The current Wall Street consensus forecast has the company’s second quarter earnings at $2.25 per share along with $23.84 billion in revenue.

Other second quarter charges include $847 million — or $1.33 per share — related to the 787 Dreamliner due to no buyers for two test aircraft and $814 million — $1.28 EPS — against the 747-8 after Boeing ended plans to double production on low demand.

Boeing will issue new full-year earnings guidance when it releases second quarter results and says the charges do not change its outlook on revenue and cash.

Shares in Boeing declined $1.02 in after-hours trade as of 5:30 p.m. Eastern time Friday and the stock fell $1.19 during normal market hours.

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