Boeing recently announced the completion of its sale of its Rocketdyne Propulsion & Power business to United Technologies Corporation, effective August 2/05. Rocketdyne is primarily a rocket engine developer and builder, and provides main engines for the Space Shuttle and the Delta family of expendable launch vehicles, as well as propulsion systems for missile defense systems. The sale includes sites and assets in California, Alabama, Mississippi and Florida.
The two companies first announced the $700 million sale agreement on Feb. 22/05, and DID covered it at the time. The financial implications were disclosed with Boeing’s results for Q2/05 [PDF format]. According to those documents, Boeing Launch & Orbital Systems is expected to generate a $575 million pre-tax gain from the close of this sale. Offsetting pre-tax charges of $215 million will be recorded in Q4/05, primarily in accounting differences and eliminations, bringing the total expected pre-tax gain from the Rocketdyne sale to $360 million.