NEW YORK (CNN/Money) -
Aerospace and defense firm Boeing Co. said Thursday it would take a $1.2 billion charge in its first quarter to reflect the severe downturn in the commercial aviation and space industries.
Most of the charge -- $931 million -- is being taken to reflect reduced goodwill, namely the value of acquisitions made with Boeing stock. The remaining $251 million of the charge is being incurred in order to strengthen the company's customer financing reserves.
Chicago-based Boeing (BA: down $0.39 to $27.09, Research, Estimates) said that the charge would lower first-quarter net earnings by $1.23 a share. The company added that it did not expect to take any more goodwill charges this year.
Boeing is scheduled to report its first quarter earnings on April 23. Analysts expect the company to earn 42 cents a share (not including the charge) compared to a profit of 75 cents a share a year earlier. Sales are expected to fall 19 percent in the quarter, from $13.8 billion a year ago to $11.1 billion.
The company, which is the world's largest maker of jets, has been hit hard by the turmoil in the airline industry. The Dow component's stock has fallen more than 17 percent year-to-date
Shares of Boeing fell 1.4 percent on Thursday and slipped another 1.6 percent in after-hours trading, according to Instinet.
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