Production is down and costs are up. Following two deadly plane crashes, Boeing has reduced the production of its 737 and grounded its existing fleet. Consequently, Boeing Co said on Thursday that it would take an after-tax charge of $4.9 billion in the second quarter.
“We are taking appropriate steps to manage our liquidity and increase our balance sheet flexibility the best way possible as we are working through these challenges,” Boeing Chief Financial Officer Greg Smith said.
Boeing shares were up slightly after this announcement, suggesting that investors are comfortable with the charge.
Boeing will still have to contend with numerous probes and investigations from both Congress and the Department of Justice.