Boeing Wasted US$60 Billion
The big question that arises, however, is why a company such as Boeing booking significant profits in previous years needs to borrow money
Click Like to Follow Fliegerfaust Facebook page to get the News ASAP / Share to share this post now.
March 24, 2020 - by Dhierin Bechai for seekingalpha.com
- Prioritizing returning cash to shareholders left company vulnerable to shocks.
- This practice should change once Boeing resolves the current crisis.
- Boeing left cash poor after returning $60 billion to shareholders.
In a recent report, I looked at the bailout package that Boeing (NYSE:BA) requested to support the aerospace manufacturing industry, and mentioned that in a piece I had already written earlier, I found that Boeing returned $60B in recent in the past five non-crisis years and 2019. Earlier I had a look at what Boeing did with the $25B it borrowed during the 2019 fiscal year.
It turned out that Boeing spent a considerable amount of new borrowings to make debt repayments, while roughly 30% was used to return value to shareholders in the form of dividends and share repurchases.
That's a decision that, under current circumstances, cannot be supported by the operational performance of the company but can find some support if we consider Boeing's risky move to fund the pension plans with its own shares a couple of years ago.
The big question that arises, however, is why a company such as Boeing booking significant profits in previous years needs to borrow money. That will be...
- News: Boeing to Temporarily Suspend Puget Sound Production ... ›
- Pratt & Whitney Canada Boeing 747SP (B74S) landing in Montreal ... ›
- Boeing Will Cut Production And Jobs Further, And May Build 787 Only In South Carolina - FliegerFaust ›
- Boeing Officially Submitted its Block III F/A-18E/F Super Hornet To Replace Canada’s Old Hornet Fighter - FliegerFaust ›
- Boeing’s 787 Choice Could Gut Washington State’s Aircraft Industry - FliegerFaust ›
- Boeing CEO Calhoun Appears To Have Put His Foot In His Mouth Again. Or Did He? - FliegerFaust ›
- 8 Grounded Boeing 787s Were Built Last Year; More Jets May Need Reworking... - FliegerFaust ›
- Boeing Suspends Work At Its Futuristic NeXt Innovation Unit - FliegerFaust ›
- Boeing Needs To Show Respect For Taxpayers... - FliegerFaust ›
- Boeing Plans 11% Fewer Jet Deliveries Over Next 10 Years Because China Coronavirus - Slow, Painful Recovery - FliegerFaust ›
- Mitsubishi To Halt Regional Jet Programme - Will Boeing Acquire The SpaceJet / MRJ? - FliegerFaust ›
- Remember The Alamo... and the CSeries (A220) - Boeing Does not... - FliegerFaust ›
- Boeing Wins Zero New Orders, Delivers Few Jets And Sees 737 MAX Backlog Shrink... - FliegerFaust ›
- Boeing 737 MAX Can Return To The Skies, FAA says - FliegerFaust ›
- Canada’s 737 Max Certification Coming ‘soon’ But With Different Requirements - FliegerFaust ›