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The Associated Press
Tuesday, October 6, 2009; 9:57 AM
CHICAGO -- Boeing said Tuesday it expects to record a charge of $1 billion in the third quarter due to higher costs in its 747-8 program and difficult market conditions.
Last year, the company said it was delaying deliveries of the 747-8 freighter and passenger jets due to design changes, limited engineering resources and a strike that shut down the company's commercial jet factories for eight weeks.
About $640 million of the charge reflects higher estimated costs to produce 747-8 airplanes at Boeing and its suppliers, Boeing said. Higher fixed expenses and volume-based penalties to suppliers are the main drivers of the additional costs, Boeing said.
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