The Boeing Company (NYSE: BA) will lower the production rate on the 747-8 program to match supply with near-term demand in the cargo market, the company said.
To account for the market and production impacts, the company will recognize a USD569 million after-tax charge (USD0.84 per share) when it announces financial results for the fourth quarter of 2015.
In September 2016, the 747-8 program´s production will decline from one airplane per month to 0.5 per month. The company previously announced that the rate would drop from 1.3 per month to one per month in March 2016.
On a pre-tax basis at the segment level, Boeing Commercial Airplanes will report a charge of USD885 million. The earnings charge will not affect the company´s 2015 revenue or cash flow. Boeing will announce its fourth quarter financial results and provide guidance for 2016 on Jan. 27.