Boeing to Take Charge for F-15 Bid

Boeing Co., the world’s biggest aircraft maker and the largest industrial employer in Southern California, said it will take a $45-million pretax charge in the second quarter after losing a bid to sell its F-15 jet fighters to the Greek government.

Dwindling orders for the F-15 and the F/A-18 fighter have already forced the Seattle-based company to announce the loss of up to 7,000 jobs, or 35% of its work force, at its military-aircraft division in St. Louis.

Boeing had already bought parts such as landing gear and radar in hopes of securing the $3.5-billion order, leaving it with excess inventory. The company also warned of another hit to earnings if Israel--which is also evaluating the F-15--decides against buying the aircraft. It gave no further details in a quarterly filing with the Securities and Exchange Commission.

Boeing said Sunday that the amount of the charge after tax and on a per-share basis wasn’t available. Spokesman Peter Conte declined to comment on whether the job cuts themselves will result in charges.

The Greek government bought 50 of Lockheed Martin Corp.’s F-16s over the F-15. It also ordered 15 of Dassault Aviation’s Mirage 2000-5 fighters.

Israel is pushing Lockheed Martin and Boeing to lower their bids before it goes ahead with a $2.5-billion order expected as early as this month. Analysts have said the nation is likely to split the order between the F-15, viewed by pilots as the most advanced combat aircraft, and the cheaper F-16.

On Friday, Boeing shares rose 19 cents to close at $43 on the New York Stock Exchange.