The Boeing Company (NYSE: BA) announced that its board of directors today authorized a new share repurchase program and declared a second-quarter dividend of twenty-five (25) cents per share. The authorization is for the repurchase of up to 40 million shares, or approximately five percent of the company's outstanding shares of common stock.
"Our overall goal is to achieve sustained value creation for our shareholders through the balanced deployment of our solid cash flow," said Boeing President, Chief Executive Officer and Chief Financial Officer James A. Bell. "Boeing's strong financial and operating performance and growing backlog continue to provide opportunities to return value to our shareholders while investing to grow profitably in the future," Bell said.
Boeing also expects to complete repurchasing the 10 million shares remaining under its current authorization, which was approved by the board of directors in December 2000.
The company's share repurchases will be made 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.
The share repurchases will be used for general corporate purposes, including the company's share-based plans and other employee stock benefit plans.
Boeing's second-quarter 2005 dividend is payable on September 2, 2005 to shareholders of record on August 12, 2005.
Foward-Looking Information Is Subject to Risk and Uncertainty
Certain statements contained in this press release are considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and it is Boeing's intent that such statements be protected by the safe harbor created thereby. Words such as "expects," "believes" and similar expressions are used to identify forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to those detailed from time to time in Boeing's filings with the Securities and Exchange Commission.