During their second quarter, Boeing Company (NYSE: BA) cash flow of $4.5 billion from their 787 Dreamliner jet program raised profit forecast marking it more than double of what analysts had expected. The company also directed $3.4 billion of the haul to stock buybacks and dividends and also announced a plan to strengthen their pension funding with company shares.
In almost 8 years, Boeing’s shares increased 7.6% to $228.67 marking it the biggest intraday jump since then. The shares tripled the Dow’s advance at 36% as the company’s stockpile of airplane orders offered investors a glimpse of future sales and cash. Boeing raised their forecast for adjusted earnings this year by 60 cents to $9.80 to $10 a share, boosting the outlook for operating cash flow by $1.5 billion to $12.3 billion.
Boeing continues to aim at generating more cash as it speeds work in their factories to capitalize their 737 airliner, which is their largest source of earnings as well as dropping manufacturing costs for their newest 787 jetliner.
$3.5 billion of common stock would also be contributed to its pension plan during the third quarter which will eliminate mandatory funding requirements through 2021. $700 million will be provided in cash tax savings as well that will enable the company to boost their cash guidance for the year.