Boeing Chairman and Chief Executive Officer Phil Condit announced that its Board of Directors today authorized a share repurchase program. The authorization is for the repurchase of up to 15 percent of the company's outstanding shares of common stock. As of the end of the second quarter 1998, Boeing had 972.7 million common shares outstanding.
"Consistent with our overall goal to enhance shareholder value over the long term, we believe that this is an effective way to return value to our shareholders," Condit stated. "We currently have cash in excess of our operating requirements, and expect to be a strong generator of cash during the next several years."
The purchases may be made, from time to time, on the open market or in privately negotiated transactions. The number of shares to be purchased and the timing of the purchases will be based on the level of cash balances, general business conditions and other factors, including alternative investment opportunities.
Forward-Looking Information Is Subject to Risk and Uncertainty
Certain statements in this release contain "forward-looking" information that involves risk and uncertainty, including projections for earnings, cash, share repurchase and other trend projections. This forward-looking information is based upon a number of assumptions including assumptions regarding demand, internal performance, and supplier and subcontractor performance. Actual future results and trends may differ materially depending on a variety of factors, including the Company's successful execution of internal performance plans; the cyclical nature of the Company's business, volatility of the market for certain products, continued integration of McDonnell Douglas Corporation; product performance risks associated with regulatory certifications of the Company's commercial aircraft by the U.S. Government and foreign governments; other regulatory uncertainties; collective bargaining labor disputes; performance issues with key suppliers, subcontractors and customers; governmental export and import policies; factors that result in significant and prolonged disruption to air travel worldwide; global trade policies; worldwide political stability and economic conditions, particularly in Asia; price escalation trends; changing priorities or reductions in the U.S. Government defense and space budgets; termination of government contracts due to unilateral government action or failure to perform; and legal proceedings. Additional information regarding these factors is contained in the Company's Annual Report on Form 10-K for the year ended 1997 and Form 10-Q for the quarterly periods ended March 31, 1998 and June 30, 1998.