Charge it.
Boeing to take big U.S. tanker charge, says will hit profit
Boeing 767-2C (KC-46)Boeing Co. said on Friday it will take a $536 million after-tax charge in its second-quarter results to deal with problems in the fuel system on the KC-46A aerial refueling tanker it is developing for the U.S. Air Force.
The Chicago-based company said the charge, which amounts to 77 cents per share, would result in lower earnings for the full year. It said added funds were needed to cover higher costs for development, certification and initial production of the tanker aircraft, while keeping the $49 billion, 179-aircraft program on track for initial deliveries of 18 tankers by August 2017.
This is the second charge Boeing has taken on the KC-46 tanker, one of its biggest defense development efforts, bringing the total after-tax charges to just over $800 million, with the pre-tax bill reaching nearly $1.3 billion.
H/T- Naval Open Source INTelligence
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