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发帖数: 60932 | 1 Boeing CFO: Company To Mull Dividend Boost, Buybacks In 2012
By Doug Cameron, Of DOW JONES NEWSWIRES
Boeing Co. (BA) will consider a dividend increase or share buyback next year
as the cash drain from its delayed aircraft programs starts to diminish, a
senior executive said Wednesday.
James Bell, chief financial officer, also said the company expects to make a
profit from a huge U.S. Air Force tanker contract despite claims from the
losing bidder that matching Boeing's offer would have left it nursing a
loss.
Bell told an investor conference that Boeing "would like to get back on
track" with rewarding investors after the company was forced to add billions
of dollars in extra development and inventory spending on the delayed 787
and 747-8 aircraft programs.
Capital expenditure is expected to fall in 2012 and 2013, as Boeing starts
production of the two planes, ahead of development work on its existing 777
range and a potential replacement for its best-selling 737 model.
Boeing and rival Airbus are both boosting output of their existing planes
amid a recovery in demand, though some industry executives have said both
may be overproducing to boost cash flow and pay for further new product
development.
"Our demand remains high," said Bell of the 737, with "pressure" to move
beyond existing plans to raise monthly production to 38 a month.
Boeing expects to deliver between 25 and 40 787s and 747-8s this year --
split evenly between the models--with what Bell described as an "orderly"
increase in output from two a month now to 2.5 in the summer and up to 10 by
the end of 2013.
He said there were no pressures in the supply chain right now limiting
production increases, though he said Boeing would be vigilant to prevent any
disruption.
Boeing shares were recently up 1.2% at $72.71.
-By Doug Cameron, Dow Jones Newswires; 312-750-4135; doug.cameron@
dowjones.com | w*******y
发帖数: 60932 | 2 A Boeing executive said on Wednesday that the Air Force will get the tanker
it ordered — and no more.
Boeing Co. won the competition to build 179 planes under a contract worth at
least $35 billion. Most of the Pentagon's costs will be fixed, rather than
traditional defense contracts in which companies pass along unexpected
expenses.
Boeing chief financial officer James Bell told analysts on Wednesday that
Boeing will strictly adhere to the requirements in the bid.
Boeing believes it can make a plane "that meets the requirements as we
proposed, and that's all we're going to build," Bell said.
He said Boeing will tell the government that this contract is different than
ones where costs are passed along: "You don't get to help. You get to
accept what we said in our proposal we will build. And we're going to be
very, very disciplined in managing the statement of work and the
requirements. Because that's what happens on development programs normally,
is that you start seeing things, and you want to make things better, or you
want to do things differently, but today's contracting environment with the
government will prevent that from happening."
Governments around the world, including the U.S., have been including
defense in efforts to cut spending. Bell said the tanker contract reflects
the more austere approach, although he said Boeing expects to be able to
turn a profit on it. Boeing won the contract after a years-long struggle
against European Aeronautic Defence and Space Co.
Bell said Boeing is looking overseas for growth of its defense business.
"We've seen more opportunity for our defense products internationally than
we've ever seen in the history of our company," he said.
Bell also said Boeing is considering raising production rates on its 737
passenger jet to 42 per month. It has already announced plans to get to 38
per month by mid-2013. Boeing has orders for more than 2,100 of the planes,
including four more for which Israeli carrier El Al signed a contract
announced on Wednesday. Bell said it would take seven years at current rates
to deliver all the 737s on order.
Shares of Chicago-based Boeing rose 87 cents to close at $72.72 | l**n
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