Boeing Capital Closing Office, Considering Sale of Finance Unit

RENTON, WA-As part of a strategic shift in focus, locally based Boeing Capital Corp. has retained Credit Suisse First Boston to find the best way for the company to shed its $2.3-billion Commercial Financial Services group, which provides financing for companies buying equipment from Boeing. The company also announced that it will relocate its Southern California office to its headquarters.

Boeing Capital has approximately 250 employees located primarily at its headquarters in Renton and in Long Beach, CA. Along with the CSFB announcement, Boeing Capital announced its intention to relocate most of its operations currently in Long Beach, to its headquarters in Renton. Boeing Capital says the company’s infrastructure is being consolidated in Renton to reduce cost, increase efficiency and improve productivity. Approximately 90 employees in the company’s support organizations will be affected. The move is expected to be complete by September 2004.As for the Commercial Financial Services last year when Boeing Capital said it would began refocusing efforts toward supporting the operations of Boeing’s business units as opposed to Boeing customers. At that time, Walt Skowronski, 55, then Boeing’s senior vice president of Finance and Treasurer, became president of Boeing Capital, replacing Jim Palmer, who retired after 12 years with the corporation.