Boeing takes US$536m charge on tanker problems, will result in lower earnings

Washington

BOEING Co has said it will take a US$536 million after-tax charge in its second-quarter results to deal with problems in the fuel system on the KC-46 aerial refuelling tanker that it is developing for the US Air Force.

The Chicago-based company said that the charge, which amounts to 77 US cents per share, would result in lower earnings for the full year. The added funds were needed to cover higher costs for development, certification and initial production of the tanker aircraft, while keeping the US$49 billion, 179-aircraft programme on track for initial deliveries in 2017, it said.