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) October 25, 2006
Boeing Capital Corporation
(Exact name of registrant as specified in its charter)
(Commission File Number) 0-10795
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| Delaware | | 95-2564584 |
(State or other jurisdiction of incorporation) | | (IRS Employer Identification No.) |
| | |
500 Naches Ave. SW, 3rd Floor Renton, Washington | | 98057 |
| (Address of principal executive offices) | | (Zip Code) |
(425) 965-4000
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 2.02. Results of Operations and Financial Condition
This Current Report on Form 8-K is for the purpose of disclosing information relating to Boeing Capital Corporation (“BCC”) that was contained in the press release and Webcast of the third quarter 2006 financial results of The Boeing Company (“Boeing”), dated October 25, 2006. The full text of Boeing’s press release is being furnished pursuant to Item 2.02 of Form 8-K.
Item 8.01. Other Events
On October 25, 2006, Boeing publicly announced by means of a press release its third quarter 2006 financial results, some of which relate to BCC. The information relevant to BCC is as follows:
Boeing Capital Corporation
BCC’s quarter-end debt balance, excluding non-recourse debt, remained unchanged from the second quarter at $5.6 billion.
BCC continued to support the operations of Boeing’s business units and reduce portfolio risk. Pre-tax earnings increased to $122 million, up $94 million from the third quarter of 2005, on strong core performance, favorable portfolio dispositions and the absence of impairments related to airline restructurings that occurred in the same quarter of 2005 (Table 6). Revenues for the third quarter climbed 32 percent to $304 million.
Table 6. Boeing Capital Corporation Operating Results
| | | | | | | | | | | | | | | | | | |
| | | 3rd Quarter | | | | | Nine Months | | | |
(Millions) | | 2006 | | 2005 | | %
Change | | | 2006 | | 2005 | | %
Change | |
Revenues | | $ | 304 | | $ | 230 | | 32 | % | | $ | 784 | | $ | 728 | | 8 | % |
Pre-Tax Income | | $ | 122 | | $ | 28 | | 336 | % | | $ | 254 | | $ | 192 | | 32 | % |
BCC’s portfolio balance at the end of the third quarter was $8.2 billion, down from $8.5 billion at the end of the second quarter on normal portfolio run-off, asset sales and depreciation. BCC contributed $52 million in cash dividends to Boeing during the quarter and $284 million in cash dividends (including return of capital) for the first nine months of the year. BCC recorded leverage of 5.0-to-1, as measured by the ratio of debt-to-equity.
BCC’s outlook is set forth in the table below:
Table 7: Financial Outlook
| | | | | | | | |
(Billions) | | 2006 | | | 2007 | |
Boeing Capital Corporation | | | | | | | | |
Portfolio Size | | | Lower | | | | Lower | |
Revenue | | ~$ | 1.0 | | | ~$ | 0.8 | |
Return on Assets | | | >1.5 | % | | | >1 | % |
Item 9.01. Financial Statements and Exhibits
The following exhibit is furnished as a part of this report:
| | |
Exhibit No. 99.1 | | Press Release |
Forward-Looking Information is Subject to Risk and Uncertainty
Certain statements contained in this Current Report on Form 8-K regarding BCC’s financial outlook may constitute “forward-looking” statements within the meaning of the Private Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Forward-looking statements are based upon assumptions as to future events that may not prove to be accurate. Actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements. As a result, these statements speak only as of the date they were made and BCC undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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.
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| | Boeing Capital Corporation |
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| | By: | | /s/ Russell A. Evans |
| | | | Russell A. Evans |
| October 25, 2006 | | | | Vice President and Chief Financial Officer |
