Boeing to Take $1 Billion Charge on 747 Program Costs

Boeing Co., the world’s second- largest commercial planemaker, delayed deliveries of its 747-8 freighter for a second time and will take a $1 billion third- quarter charge for higher costs and lower-than-expected demand.

About $640 million of the pretax charge reflects higher expenses to produce the 747-8, Chicago-based Boeing said today in a statement. Higher allocation of fixed expenses and volume- based penalties to suppliers are the main drivers of the additional costs, the company said.

Disruptions in the manufacturing process mean Boeing’s freighter, originally scheduled for delivery late this year, will now be sent to customers in fourth quarter of 2010. The delay comes amid five setbacks for Boeing’s 787 Dreamliner, which has yet to fly.

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- Posted: 2009-10-06 13:10:54

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