Boeing Boosts Share Buyback Authorization to $12B
Boeing Co (NYSE:BA) raised its share repurchase authorization to $12 billion from $10 billion and said it would increase its quarterly dividend by 25 percent, a sign of confidence in its cash outlook for the year.
The world's biggest planemaker had $4.8 billion remaining in its previous stock buyback plan and raised the dividend to 91 cents per share from 73 cents.
Investors sent Boeing stock up 2.3 percent to $124.90 in after-hours trading.
Boeing shareholders have been looking for the company to deliver cash as it ramps up delivery of planes to record levels.
In October, Boeing reported an 18 percent rise in third-quarter profit, but its cash generation lagged below expectations, putting a question mark over its ability to meet its forecast for the year.
Boeing had promised that cash flow would be "very strong" in the fourth quarter, and Monday's move signaled it was confident of hitting its targets.
"Strong operating performance across our business continues to generate significant cash flow and financial strength for Boeing," said Chief Executive Officer Jim McNerney.
Boeing also said had finished its stock repurchases for 2014, having spent $6 billion, and plans to resume in January. It added that it expected the purchases under the current plan to take two to three years.
(Reporting by Sagarika Jaisinghani in Bengaluru and Alwyn Scott in New York; Editing by Joyjeet Das and Lisa Shumaker)