Boeing May Sell Portion of Loan Portfolio

Boeing Co., the world’s second-biggest maker of commercial jets, may sell its $2.3 billion in non-aircraft loans because they don’t fit with its strategy.

Those loans represent 19% of the $12.2-billion portfolio of the Chicago-based company’s finance unit. Boeing may sell the commercial-finance portion of the unit altogether or sell the individual loans separately, it said.

Boeing wants to rid itself of loans it made for business jets, boats, printing presses, cardboard-making equipment and machine tools. Boeing said in November that it would mainly use the financing unit to help attract aircraft orders rather than to increase sales.

The commercial-finance service’s portfolio generated $63 million in profit on $171 million in sales in the first nine months of last year. Boeing had a net loss of $414 million on sales of $37.3 billion in the period.

Boeing is talking to potential buyers, said Russ Young, a spokesman for the unit, called Boeing Capital.

Boeing Capital, run from Renton, Wash., and Long Beach, has hired Credit Suisse First Boston to advise it on options. Boeing plans to move 90 workers in September to Renton from Long Beach.

Boeing shares fell 7 cents to $43.04 on the New York Stock Exchange.