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Boeing Takes $410M Charge In Case Another Unscrewed Starliner Test Is Needed

Boeing Co (NYSE: BA) reported a $410 million pre-tax charge in its fourth-quarter results on Wednesday to cover the cost of a possible extra uncrewed launch of its Starliner capsule should NASA require it.

Benzinga · 01/29/2020 17:00

Boeing Co (NYSE: BA) reported a $410 million pre-tax charge in its fourth-quarter results on Wednesday to cover the cost of a possible extra uncrewed launch of its Starliner capsule should NASA require it.

Boeing said in its earnings report that in its Defense, Space & Security division, fourth-quarter operating margin decreased to 0.5 percent because of the charge "primarily to provision for an additional uncrewed mission for the Commercial Crew program, performance and mix."

Boeing's Starliner is being tested for possible use by NASA as a ferry to the International Space Station. SpaceX is also part of the so-called Commercial Crew program.

Boeing said NASA continues to evaluate data from Boeing's Starliner launch in December, in which an error prevented the Starliner from hitting its orbit and docking with the ISS. It's not clear yet whether another uncrewed launch will be necessary before a crew can fly the craft.

Boeing (NYSE: BA) Price Action

Boeing shares were up 1.33% to $320.87 at time of publication Wedneday.

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