Boeing OKs $7 billion to buy back more stock

Boeing said Monday that its board of directors authorized the repurchase of up to $7 billion in common stock, stepping up a program that has seen the aerospace company buy back about $8 billion of its shares since resuming repurchases in 2004.

The new plan follows a $3 billion buyback approved by the board in August 2006, a program the company said is nearing completion.

"Our strong financial performance allows us to return value to our shareholders while continuing to invest in our growth and becoming more productive," said Chairman and Chief Executive Jim McNerney. "We are executing a balanced cash-deployment strategy that's serving Boeing and its shareholders well."

The announcement comes amid a three-month slide in Boeing shares, which have lost about 10 percent of their value after hitting an all-time high in July of $107.23, as production problems have delayed the company's new 787 Dreamliner.

Still, Boeing's stock has quadrupled since early 2003 and more than doubled from levels right before the 2001 terrorist attacks.

Boeing last week said it increased deliveries of commercial aircraft in the third quarter and raised its full-year sales and profit forecasts, moving closer to eclipsing Airbus as the world's biggest plane maker.

"Based on the huge backlog in their commercial-airplane division, they're going to have some pretty strong cash growth," said Richard Tortoriello, an analyst with Standard & Poor's in New York. "It's a very good thing for the stock right now."

The stock-repurchase announcement pushed Boeing shares up 97 cents, or 1 percent, to close at $96.99 Monday.

Boeing said the share repurchases will be made on the open market or in privately negotiated transactions.

The company also declared a regular quarterly dividend of 35 cents a share, payable Dec. 7 to shareholders of record as of Nov. 9.

Separately on Monday, Paccar said it will buy back $300 million of its shares after spending almost a billion dollars on its previous repurchase plan.

The buyback follows the Bellvue truck maker's $978 million in share repurchases in the past three years.

"We completed the previous plan in the third quarter, and this one was just approved," spokeswoman Cathy MacLeod said.

Paccar — the world's third-largest truck maker, which has almost tripled annual earnings since 2003 — could buy as many as 5.5 million shares under the new plan, based on Monday's stock price.

Paccar shares fell 33 cents to $54.53 Monday; the buyback was announced after the close of trading. The stock has gained 26 percent this year.

Information from The Associated Press, Reuters and Bloomberg News is included in this report.