Page last updated at 16:54 GMT, Tuesday, 6 October 2009 17:54 UK

Boeing admits further 747-8 delay

Boeing 747-8 Freighter being assembled
Boeing said late engineering designs caused disruption

Boeing has announced a further delay to its 747-8 Freighter aircraft and said higher costs and tough market conditions would cost it $1bn (£628m).

It is the second delay to the programme this year. The Freighter's first flight has been pushed back to early 2010 from the fourth quarter of 2009.

Boeing's 787 Dreamliner has also been dogged by delays, and is now running two years behind its original schedule.

Shares in Boeing were down four cents at $52.24 in early trading in New York.

"They have so many issues with the 787 that it's taken their eye off the ball elsewhere," said Alex Hamilton from the brokerage Jesup & Lamont.

Charge absorbed

Delivery of the 747-8 Freighter has also been pushed back to the fourth quarter of 2010 from the third quarter.

Boeing said that it became clear that later-than-expected engineering designs had caused "greater-than-expected re-work and disruption in manufacturing".

The firm said it would absorb the $1bn charge in the third quarter.

"Approximately $640 million of the charge reflects higher estimated costs to produce 747-8 airplanes at both Boeing and supplier facilities," Boeing said in a statement.

"The remaining $360 million of the charge relates to challenging market conditions and the company's decision to maintain the 747-8 production rate at 1.5 planes per month nearly two years longer than previously planned, deferring an increase to 2 per month."

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