Boeing rises stock buyback by $10 billion
CHICAGO - The Associated Pres
This file photo shows a Boeing 777 on the assembly line at its Washington plant. The firm has approved a $10 billion rise in its stock buyback program. REUTERS photoThe Boeing Co. says its board of directors approved a $10 billion increase in its stock buyback program. The aircraft maker is also raising its quarterly dividend payment by about 50 percent.
Chairman and CEO Jim McNerney says the moves reflect its operational performance, increasing cash flow and confidence in the future.
The increase in the share buyback program is in addition to the $800 million remaining authority in Boeing’s current stock repurchase program. Boeing says it will resume buying back its own stock in January.
The Chicago-based company says it has declared a quarterly dividend of 73 cents per share payable March 7, 2014, to shareholders of record Feb. 14.
Boeing is enjoying a surge in revenue and cash as it ramps up commercial jet production, with a target of delivering a record 635 to 645 aircraft this year. Those gains help offset declining U.S. military spending, which is hampering Boeing’s defense businesses.
The company is also preparing to invest billions of dollars in two new models, the narrow-body 737 MAX and the wide-body 777X.