New York, NY, United States (4E) - World's largest planemaker Boeing will take a $5 billion hit this quarter because of its 737 MAX crisis. The company said in a statement it will record this money after-tax charge in the second quarter "in connection with an estimate of potential concessions and other considerations to customers for disruptions related to the 737 Max grounding and associated delivery delays."
In the Thursday statement, Boeing pointed out that the charge amounts to $8.47 a share.
As reported by the Wall Street Journal, the company's shares rose about 2 percent in after-hours trading. In addition, the newspaper pointed out that Boeing reported second-quarter earnings next week.
Apparently, the reduction will come to about $5.6 billion in revenue and earnings before the taxes. However, these numbers represent only a portion of the cost of the crisis to the planemaker.
The company also pointed out that the cost of building the 737 MAX increase by almost $2 billion. That price will be included in its operating results.
The Thursday announcement represents Boeing's fullest accounting to date of the cost of grounding the 737 MAX, which despite the fact it hasn't been able to fly since March, remains as the company's best-selling jet.
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