Boeing Authorizes Biggest Buyback in History

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

Dec. 17 (Bloomberg) -- Bloomberg’s Robert Wall reports on the reasons behind Boeing’s share buyback and what that may mean for Airbus. He speaks on Bloomberg Television’s “The Pulse.” (Source: Bloomberg)

Handed back to investors.

Why?

Boeing is going into a cash generative fury.

They're going to be delivering a lot of planes, they have to do something with the cash.

The last 10 years have been about plain development.

Lane development -- [plane development sucks up a huge amount of cash.

It is good times for the next few years.

Their 737, production is really high -- they have taken a low cost option on that.

Even that doesn't come for a couple of years.

The 787 is coming at a rate of 10 a month.

Good times.

Can we extrapolate this into airbus?

They came out last week promising a dividend and more stability in their earning.

Not the kind of scale -- not the kind of scale, but similar.

In terms of risk, what are the risks to this money not appearing?

There are going to be challenges ahead.

The program is just back on track.

The risk for both airbus and boeing is what happens in the supply chain.

Can the smaller guys keep up?

If you are moving the airbus 8320 line, if there's a small part missing, it can be a low- cost part, suddenly you can't -- the plane and that is the biggest risk to both of them.

Ea ds doesn't have the big defense arm that boeing has.

How much of a drag is that going to be?

It is a drag.

You used to think as -- of a boeing is 50-50, but it is not that anymore.

There is a lot of emphasis on international.

They are closing the c-17 production line.

Can you keep the cost in line with the declining top line?

They are being aggressive on making that happen.

Very interesting story.

Rob wall, thank you very much, indeed.

Campbells soup made -- maybe on the menu for buyout.

Investors are eyeing them as the next big target in the packaged food sector.

What is the appeal of campbells to a buyer?

The appeal is, for some of -- someone like mike buffett, campbell is all about brand and the food industry is all about brand.

Bold fresh -- goldfish, campbell soup and i can, everyone knows this.

It is in the warren buffett labor.

He owns fruit of the loom, staple kind of clothing.

Heinz, he purchased with 3g last year.

The iconic ketchup bottle.

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change