BUSINESS NEWS
15 Dec 14. Boeing [NYSE: BA] Chairman and Chief Executive Jim McNerney announced that the Boeing board of directors increased the company’s authorization for its share repurchase plan to $12bn and declared that the company’s regular quarterly dividend will increase by 25 percent to 91 cents per share.
“Strong operating performance across our business continues to generate significant cash flow and financial strength for Boeing,” said McNerney. “That strength, coupled with the solid growth outlook for commercial aviation and Boeing’s unmatched product and services portfolio, provides us with the foundation to continue our balanced cash deployment strategy, investing in our core programs while increasing shareholder value.”
The $12bn repurchase authorization approved replaces the authorization approved in 2013 of which approximately $4.8bn was remaining. Repurchase activity for 2014 is now complete at $6bn and is expected to resume in January 2015. The timing and volume of repurchases are at the discretion of Boeing management, however it is currently expected that the share repurchases will be made over the next two to three years. Repurchases may be made on the open market or in privately negotiated transactions.
Boeing’s new dividend represents an 88 percent increase over the past two years.
“This increase affirms our commitment to a balanced cash deployment strategy that delivers consistent returns to our shareholders,” said Boeing Executive Vice President and Chief Financial Officer Greg Smith. “This disciplined approach allows us to continue to invest in productivity and innovation and provides us with a strong foundation for growth,” Smith said.
The dividend declared is payable March 6, 2015, to shareholders of record as of February 13, 2015.
16 Dec 14. HEICO CORPORATION (NYSE:HEI.A) (HEI) reported that net income increased 18% to a record $121.3m, or $1.80 per diluted share, up from $102.4m, or $1.53 per diluted share, in the fiscal year ended October 31, 2013. Net income per diluted share increased 9% to 48 cents on $32.1m of net income in the fourth quarter of fiscal 2014, up from 44 cents on $29.8m of net income in the fourth quarter of fiscal 2013.
For the full fiscal year ended October 31, 2014, operating income increased 11% to a record $203.4m, up from $183.6m in the fiscal year ended October 31, 2013. Operating income was $53.7m in the fourth quarter of fiscal 2014, as compared to $55.6m in the fourth quarter of fiscal 2013. The Company’s consolidated operating margin was 18.4% and 18.0% in the fourth quarter and fiscal year ended October 31, 2014, respectively, as compared to 19.3% and 18.2% in the fourth quarter and fiscal year ended October 31, 2013, respectively. Cash flow provided by operating activities totalled a record $190.7m in the fiscal year ended October 31, 2014, representing 157% of net income and exceeded our prior expectations of $160m. This compared to $131.8m in the fiscal year ended October 31, 2013. For the full fiscal year ended October 31, 2014, net sales increased 12% to a record $1,132.3m, up from $1,008.8m in the fiscal year ended October 31, 2013. Net sales increased 2% to a record $292.2m in the fourth quarter of fiscal 2014, up from $287.4m in the fourth quarter of fiscal 2013. Net income per diluted share in the fourth quarter of fiscal 2014 includes a net 3 cent benefit from a reduction in accrued contingent consideration related to a fiscal 2012 acquisition that was partially offset by impairment losses related to the write-down of certain intangible assets at the acquired business. Net income per diluted share for the full fiscal year ended October 31, 2014 also includes a cumulative net 12 cent benefit from prior reductions in accrued contingent consideration related to a fiscal 2013 acquisition that were partially offset by impairment losses related to the write-down of certain intangible assets and lower than expected operating income at the acquired