NEW YORK (Standard&Poor's) July 15, 2003--Boeing Co. (A/Stable/A-1) announced that it will recognize pretax charges of about $1.1 billion in the second quarter, due to continued weakness in the commercial space launch market, higher costs on the Delta IV program, and performance-related cost growth in the satellite businesses. Standard&Poor's Ratings Services said that its ratings (which were lowered on May 15, 2003) or outlook on Boeing are not affected by this development. About $135 million of the charges are noncash depreciation and inventory adjustments, with the balance of the cash outlays to be incurred over the next seven years. The charges are not expected to have a material effect on the consolidated free cash flows of
