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Boeing Plans Buyback

The company will repurchase up to $7 billion worth of stock.


(BA) - Get Report

said Monday it will buy back up to $7 billion worth of its common stock.

The airplane maker's board approved a new repurchase plan to follow the $3 billion buyback it approved in August 2006. The company is nearing completion of the repurchases authorized under that plan. Since 2004, Boeing has bought approximately $8 billion worth of its stock.

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

Boeing shares closed at $96.99, up 97 cents. The stock has declined about 8% this month, primarily because Boeing said on Oct. 10 that delivery of the first 787 would be delayed for six months. Shares have dipped as low as $93.79 this month.

The board also approved a regularly quarterly dividend of 35 cents a share, payable Dec. 7 to stockholders of record Nov. 9.