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Boeing: to record 4.9 billion dollars in charges for 737 MAX

( - Boeing will record an after-tax charge of 4.
9 billion dollars for the disruptions related to the 737 MAX grounding and delivery delays, resulting in a pre-tax cut in revenue and earnings of 5.6 billion dollars in the second quarter, the US plane maker said late on Thursday.

While the entire estimated amount will be recognised as a charge in the second quarter, Boeing expects expenses of estimated potential concessions and other considerations to customers to be provided over a number of years, and take various forms of economic value.

Additionally, Boeing's estimated costs to produce the aircraft increased by 1.7 billion dollars in the second quarter, due to a longer than expected reduction in the production rate.

Boeing said it remains focused on returning the 737 MAX to service, but admitted the timing of return could differ from the estimate date of early in the fourth quarter 2019.

The company will report second-quarter results on 24 July.

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