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http://www.reuters.com/article/us-boein ... SKCN0UZ2VE
.Thu Jan 21, 2016 6:18pm EST
Boeing to cut 747-8 production in half as demand slows
Boeing Co (BA.N) said on Thursday it will cut production of its 747-8 jumbo jet in half
and take a $569 million charge in the fourth quarter as it faces dwindling sales.
The four-engine jet is now mostly a cargo workhorse,
eclipsed by more fuel-efficient twin-engine jets for passengers.
It also is being used to upgrade the U.S. Air Force One presidential fleet, but that will be a small number of planes.
"The air cargo market recovery that began in late 2013 has stalled in recent months and slowed demand for the 747-8 freighter,"
Ray Conner, chief executive of Boeing Commercial Airplanes, said in a statement.
Boeing has disclosed in its regulatory filings for months that the costs of making the 747-8 were outstripping sales
suggesting an imbalance of about $1 billion,
so the charge is somewhat less than analysts had expected and had already been factored into Boeing's stock price.
Boeing shares slipped in extended trade to $121.60 from a close of $123.40 on the New York Stock Exchange.
Boeing said it will cut output to half a plane a month in September, down from a target of one a month that it will reach in March.
Boeing had already announced plans to cut production to one a month from 1.3 a month currently.
Boeing booked 71 net 787 sales last year, compared with two 747-8s,
the first sales of the jumbo jet in two years