8-K 1 d8k.htm FORM 8-K Form 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported) April 27, 2005

 

Boeing Capital Corporation

(Exact name of registrant as specified in its charter)

 

(Commission File Number) 0-10795

 

Delaware

  

95-2564584

(State or other jurisdiction of incorporation)   (IRS Employer Identification No.)

 

500 Naches Ave. SW, 3rd Floor; Renton, Washington

  

98055

(Address of principal executive offices)   (Zip Code)

 

(425) 965-4002

Registrant’s telephone number, including area code

 

 
(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Item 8.01. Other Events

 

This Current Report on Form 8-K is for the purpose of disclosing information relating to Boeing Capital Corporation (“BCC” or “Boeing Capital”) that was contained in the press release and Webcast of first quarter 2005 financial results of The Boeing Company (“Boeing”), dated April 27, 2005. The information relevant to Boeing Capital is as follows:

 

Boeing Capital Corporation

 

Boeing Capital Corporation continued to create value by supporting the operations of Boeing’s business units and reducing portfolio risk. Revenues for the first quarter were $237 million and pre-tax income was $44 million, both down from the first quarter of 2004 due to portfolio reductions and the absence of gains on asset sales recognized in 2004. BCC results are summarized in Table 7.

 

Table 7. Boeing Capital Corporation Operating Results

 

     1st Quarter
   

%

Change

  

(Millions)

    2005
    2004
   

Revenues1

    $ 237    $ 251    (6 %)

Pre-Tax Income (Loss)1

    $ 44    $ 73    (40 %)

Discontinued Operations (After-Tax)

    $ 0    $ 9    (100 %)
1 2004 excludes discontinued operations from the sale of BCC's commercial finance unit.

 

The quarter-end portfolio balance was $9.4 billion, down from $9.7 billion at the end of 2004. The portfolio reduction reflects normal portfolio run-off and depreciation, which was higher than new business volume for the quarter, and a restructure of certain leases which resulted in the application of reserves to reduce asset values. These factors, combined with solid performance, enabled BCC to contribute $55 million in cash dividends to Boeing during the quarter. Leverage, as measured by the ratio of debt-to-equity, was 5.0-to-1, unchanged from the end of 2004. Boeing Capital debt dropped to $6.8 billion at the end of the first quarter of 2005, compared with $6.9 billion at the end of the fourth quarter 2004, as operating cash flow from the unit exceeded new financing requirements.

 

Boeing’s outlook for Boeing Capital is set forth in the table below:

 

Boeing Capital Corporation Financial Outlook

(Billions)

    2005
     2006
  

Portfolio Growth (Net)

    ~$ (0.5 )     Flat  

Revenue

    ~$ 0.9     ~$ 0.9  

Return on Assets

      ~1 %     >1 %

 

Item 9.01. Financial Statements and Exhibits

 

The following exhibit is furnished as a part of this report:

 

Exhibit No. 99 Press Release

Item 2.02. Results of Operations and Financial Condition

 

On April 27, 2005, Boeing publicly announced by means of a press release its first quarter 2005 financial results, some of which relate to Boeing Capital Corporation. The full text of Boeing’s press release is being furnished pursuant to Item 2.02 of Form 8-K.

 

Signature

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

    Boeing Capital Corporation
    By:  

/s/    Russell A. Evans

        Russell A. Evans
April 27, 2005       Vice President and Chief Financial Officer