Face-to-face
with Boeing owners
A key audience-more than 200 owners, investors and securities analysts
whose opinions can have a tremendous
effect on the Boeing stock price-gave a generally positive response to the work
Boeing has done to deliver shareholder value and position itself for growth.
Boeing senior leaders last month gave this constituency a first-hand
account of the
company's plans and efforts at the annual Boeing investor conference, held in
New York. For Boeing, the goal of this annual event is to build the confidence
these key
investor representatives have in the company's strategy, leadership, performance
and future outlook. Their support of Boeing's achievements and outlook can translate
into higher stock prices. That in turn can enhance employee benefits tied to
Boeing stock, such as the Boeing stock holding in the Voluntary Investment Plan
savings
plan. Proper valuation and confidence
in Boeing's outlook is also important for capital market participants, who influence
the company's ability to raise capital to fuel growth and pursue new work for
the company
and its people.
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Share repurchase program helps return
value to owners
Boeing's recent reinstatement of the share repurchase program is the
latest way the company is returning value to shareholders and signaling
its improving
outlook.
Shareholders generally consider share repurchases a good use of cash,
since
these actions return cash to the company's owners and can help increase earnings
per share by reducing the number of outstanding shares. Buybacks also signal
management's belief that purchasing shares is a good investment. Should circumstances
change, management can start or stop
repurchases as appropriate-just as Boeing
has done over the last several years.
Finally, a share repurchase reflects financial discipline. It communicates
that company leadership will return cash to shareholders after funding
continuing
operations and growth opportunities consistent
with its strategy.
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