Narrative:

Takeoff out of ZZZ; reduced thrust takeoff on the abc departure. The takeoff was uneventful through initial flap retraction. At about 1400 ft MSL; we heard a large bang; slight yaw with loss of thrust. An engine scan with 'engine fail' light confirmed a #2 engine failure. There were no overheat or fire indications. I; captain; was flying with the HUD down; autoplt and LNAV were engaged. Initially; autoplt handled jet fine; however; I disengaged autoplt so I could level off and finish raising the flaps. Once that was complete and thrust was set; I re-engaged autoplt. We declared an emergency and ATC started us on a box pattern for runway. We ran the engine failure checklist and the 1 engine inoperative landing checklist. We landed flaps 15 degrees uneventfully and cleared the runway. Fire coverage was present and they reported no fire or abnormal indications. We taxied to the gate and gave the jet to maintenance.

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Original NASA ASRS Text

Title: A B737-700 ENG FAILED ON TKOF AT 1400 FT. AN EMER WAS DECLARED WITH A RETURN TO LAND.

Narrative: TKOF OUT OF ZZZ; REDUCED THRUST TKOF ON THE ABC DEP. THE TKOF WAS UNEVENTFUL THROUGH INITIAL FLAP RETRACTION. AT ABOUT 1400 FT MSL; WE HEARD A LARGE BANG; SLIGHT YAW WITH LOSS OF THRUST. AN ENG SCAN WITH 'ENG FAIL' LIGHT CONFIRMED A #2 ENG FAILURE. THERE WERE NO OVERHEAT OR FIRE INDICATIONS. I; CAPT; WAS FLYING WITH THE HUD DOWN; AUTOPLT AND LNAV WERE ENGAGED. INITIALLY; AUTOPLT HANDLED JET FINE; HOWEVER; I DISENGAGED AUTOPLT SO I COULD LEVEL OFF AND FINISH RAISING THE FLAPS. ONCE THAT WAS COMPLETE AND THRUST WAS SET; I RE-ENGAGED AUTOPLT. WE DECLARED AN EMER AND ATC STARTED US ON A BOX PATTERN FOR RWY. WE RAN THE ENG FAILURE CHKLIST AND THE 1 ENG INOP LNDG CHKLIST. WE LANDED FLAPS 15 DEGS UNEVENTFULLY AND CLRED THE RWY. FIRE COVERAGE WAS PRESENT AND THEY RPTED NO FIRE OR ABNORMAL INDICATIONS. WE TAXIED TO THE GATE AND GAVE THE JET TO MAINT.

Data retrieved from NASA's ASRS site as of January 2009 and automatically converted to unabbreviated mixed upper/lowercase text. This report is for informational purposes with no guarantee of accuracy. See NASA's ASRS site for official report.