Boeing to see $5.6 billion hit on 737 Max groundings

Boeing Co. said late Thursday it will record an after-tax charge of $4.9 billion, or $8.74 a share, in the second quarter in connection with the 737 Max groundings.

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The charge will result in a $5.6 billion dent in revenue and pre-tax earnings in the quarter, Boeing said. Boeing is expected to report second-quarter earnings on Wednesday.

Boeing BA, -2.28% also warned that the estimated costs to produce the aircraft increased by $1.7 billion in the second quarter, primarily due to higher costs associated with a longer-than-expected reduction in the production rate.

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