Boeing (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.