Boeing To Reduce 747 Production Rate; To Record Charge In Q4 - Quick Facts

(RTTNews) - The Boeing Company (BA) announced the company will lower the production rate on the 747-8 program to match supply with near-term demand in the cargo market. The company will recognize a $569 million after-tax charge, or $0.84 per share, for the fourth quarter of 2015. On a pre-tax basis at the segment level, Boeing Commercial Airplanes will report a charge of $885 million. Boeing noted that the earnings charge will not affect the company's 2015 revenue or cash flow.

"Global air passenger traffic growth and airplane demand remain strong, but the air cargo market recovery that began in late 2013 has stalled in recent months and slowed demand for the 747-8 Freighter," said Ray Conner, Boeing vice chairman and president and CEO of Boeing Commercial Airplanes.