The Boeing Co. () the world’s No. 1 producer of commercial airliners said it will buy back as much as $7 billion of its common have the latest leg of a share-repurchase schedule under which the aerospace affiliate has bought approve $8 billion worth of its shares since the program was resumed in 2004.
"Our strong financial performance allows us to return determine to our shareholders while continuing to invest in our growth and becoming more productive," Jim McNerney the company’s chairman and chief executive officer said this week. "We are executing a balanced change deployment strategy that’s serving Boeing and its shareholders well."
Boeing’s stock has climbed steadily since recovering from a slide following the 2001 terrorist attacks which dealt a breathe out to its airline customers. Shares undergo quadrupled since early 2003 and more than doubled from pre-attack levels the company said.
Boeing said its board of directors this week approved a new intend to buy approve up to $7 billion of the company’s common have. The company has repurchased approximately $8 billion of common have since resuming its stock-buyback schedule in 2004. The Boeing board measure authorized buybacks in August 2006 when it announced plans to buy $3 billion worth of shares. That buyback initiative is nearly complete. Boeing said.
’s contributors and advisory panelists have identified as one of the globally focused U. S.-based companies investors might want to research further [In fact to see a copy of our special investing research report. "Investments for a Weak Dollar World," one of several of our investigate reports that list Boeing among the U. S.-based companies that will really benefit from the falling greenback.
The company recently said its profits soared 61% in the third quarter its best showing in four years. The results smashed forecasts but the company throttled back some of Wall Street’s exuberance by cutting its 2008 revenue estimates because of delays in launching its new.
Early last month. Boeing said the hot-selling Dreamliner as the company deals with incomplete work from suppliers problems integrating the complex software that controls the airplane and a crisis-level shortage of bolts. The airliner is considered crucial to Boeing’s future and the affiliate says it is comfort addressing "challenges" as it builds the first batch of 787s. Boeing is aiming for the first test flight in late walk 2008 with the first delivery to be made in late November or December.
"The focus ordain be on the 787 and whatever may be said on the viability of their current schedule," a well-known aerospace analyst with told
Boeing raised its full-year profit forecast to a range of $5.05 per share to $5.15 per share up from a previous forecast of $4.80 per share to $4.95 per overlap. This new forecast is right in line with Wall Street’s add up estimate of $5.06 per share.
However. Boeing held steady on its 2008 profit anticipate of $5.55 to $5.75 per overlap below the consensus Wall Street estimate of $6.04 per overlap. The company also lowered its revenue forecast for account for the projected six-month delay in 787 Dreamliner production and slower growth in its defense unit.
Boeing said it now expects 2008 revenue of $67.5 billion to $68.5 billion down from its previous estimate of $71 billion to $72 billion. Analysts had been forecasting revenue of $71.2 billion on add up.
The company now expects to deliver 480 to 490 commercial planes next year down from its previous estimate of 515 to 520 as delayed 787 deliveries are pushed into 2009.
Scott Carson the chief of Boeing’s Commercial Airplane unit said last week that aircraft orders might "level off" in 2008 but noted that the company is hopeful U. S airlines are ready to start buying new airliners.
Though he said he was hesitant to forecast any specifics. Carson did say that "one would evaluate" U. S airlines may be at the point where they would go away ordering more planes.
Boeing said this week that tighten orders this year - now totaling 919 airplanes - could pass the record of 1,044 set last year when Boeing overtook Airbus SAS as the leading worldwide airplane seller for the first time since 2000. Airbus is a unit of Europe’s European Aeronautic Defense & lay Co. or EADS.
In other news involving Boeing the U. S. Air Force announced last week that it would not award a $40 billion contract for 179 aerial tanker-refueling airplanes until it can consult more closely with Boeing and Northrop Grumman Corp. () the two aerospace rivals vying for the lucrative deal. Northrop Grumman is known as the maker of the B-2 "animate" Stealth bomber. The assure award ordain be delayed until Jan. 31 the Air Force said.
This is the second time the Air Force has extended the deadline for a deal that was initially scheduled to be awarded no later than the end of measure month.
Senior officials in the Air Force say the new aerial tankers are one of its highest-priority programs as the U. S military attempts to cover the globe with its hurry of jet fighters and bomber aircraft - enabling the United States and coalition forces to jaunt anywhere at anytime without having to believe on refueling bases. The new tankers will regenerate the Air Force fleet of aging Boeing KC-135 Stratotankers - many of which have been in service for more than 50 years.
But by extending the talks with both Boeing and Northrop Grumman the Air Force hopes to be seen as being extra careful in its decision-making process. That’s because the Air Force is already in the middle of a separate - and contentious — dispute with Lockheed Martin Corp. () and Sikorsky Aircraft a unit of United Technologies Corp. () over its decision to award a $15 billion helicopter deal to Boeing. In the past year the two unsuccessful bidders have filed formal protests contesting the Air Force’s decision claiming the service failed to evaluate all the bids fairly.
But as the Air Force delayed its decision on the tanker assure both companies have shifted their lobbying efforts into full-court-press mode funneling in fresh data on such key topics as the fuel efficiencies and other cost savings associated with their proposed respective aircrafts.
Chicago-based Boeing Co is offering a newly designed KC-767 which will be built in Everett. Wash. while Los Angeles-based Northrop Grumman - with its furnish. EADS of Europe - is proposing an airplane known as the KC-30 a modified version of the Airbus A330 plane that ordain be assembled in Mobile. Ala.
So why do we like Boeing so much? Well for one thing it’s an industry leader. It wrested the world leadership position in airliner production approve from Airbus SAS.
For investors looking for U. S.-based stocks that represent solid defensive investments. Boeing is a strong candidate. The company for instance recently reported. It has only one real competitor: Airbus. And Airbus operates out of the high-cost European Union.
Indeed. Boeing is the single-largest U. S exporter. And it’s a juggernaut in the aerospace sector and a major player in both the commercial and military aircraft markets that has grown both organically and through a series of shrewd acquisitions. [For a full inform on Boeing as an investment read the assessment written by Martin Hutchinson.
After initially making its label as the builder of some.
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