Boeing Takes $1.1 Billion Charge For Launch, Satellite Losses

By | July 15, 2003 | Uncategorized

Boeing [NYSE: BA] announced Tuesday that, as a result of continued weakness in the commercial space launch market, higher mission and launch costs on its Delta IV program, and cost growth in its satellite businesses, it would take a pre-tax charge of $1.1 billion, or 87 cents per share, in the second quarter.

Approximately $835 million, or 66 cents per share, is attributable to the Delta IV program and reflects the company’s lower assessment of global demand for launch services. Roughly $265 million, or 21 cents per share, is for losses at Boeing Satellite Systems during the second quarter that were spurred by higher cost estimates to complete several satellite programs and write-downs of commercial inventory to match current market conditions.

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