Twenty billion dollars! Boeings board of directors will buy back or spend billions to develop new aircraft

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 Twenty billion dollars! Boeings board of directors will buy back or spend billions to develop new aircraft


Pengchao journalist Yao Xiaolan

Boeing, an American aircraft manufacturer, approved a $20 billion stock repurchase plan.

On December 17, local time, Boeing Inc. (New York Stock Exchange Code: BA) announced on its official website that the board of directors announced on the same day that the companys quarterly dividend would be raised by 20% to $2.055 per share. Boeings board also approved a new $20 billion stock repurchase plan, replacing the $18 billion stock repurchase plan approved last December.

Dennis Muilenburg, chairman, president and CEO of Boeing, said, Boeing continues to see important opportunities in the market it serves and is confident in its strategic planning. Boeings strong operating performance, financial position and good future prospects will help us continue to invest in our human resources and workplaces, innovative products and services, as well as specific strategic M&A transactions and partnerships that can accelerate growth strategies.

Greg Smith, Boeings chief financial officer and executive vice president of corporate performance and strategy, said, Our performance strength and confidence in the long-term prospects for sustainable growth are driving investment in productivity, innovation and growth, while we are fulfilling our commitment to return cash to shareholders.

In 2018, Boeing has bought back $9 billion worth of shares from $18 billion in shares approved for repurchase in 2017. So far, the stock repurchase in 2018 has ended. The timing and quantity of the next repurchase will be determined by Boeings management. Boeing currently expects that the $20 billion stock repurchase plan will resume in January 2019 and be completed within the next 24 months. Boeings strategy of rewarding shareholders has more than doubled its share price in six years since it stabilized 787 production six years ago. On December 18, Beijing time, analysts were quoted by Bloomberg as predicting that Boeing would spend about $10 billion to develop new medium-sized aircraft, the first new aircraft since 787. Boeing shares rose 1.3% to $320.20 on the news. As of Monday local time, Boeings share price has risen by 7.2% this year. By contrast, the S&P index of American industrial companies has fallen by 14% this year. Source: Wang Fengzhi _NT2541

In 2018, Boeing has bought back $9 billion worth of shares from $18 billion in shares approved for repurchase in 2017. So far, the stock repurchase in 2018 has ended. The timing and quantity of the next repurchase will be determined by Boeings management. Boeing currently expects that the $20 billion stock repurchase plan will resume in January 2019 and be completed within the next 24 months.

Boeings strategy of rewarding shareholders has more than doubled its share price in six years since it stabilized 787 production six years ago.

On December 18, Beijing time, analysts were quoted by Bloomberg as predicting that Boeing would spend about $10 billion to develop new medium-sized aircraft, the first new aircraft since 787.

Boeing shares rose 1.3% to $320.20 on the news. As of Monday local time, Boeings share price has risen by 7.2% this year. By contrast, the S&P index of American industrial companies has fallen by 14% this year.