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Boeing CFO Talks Buybacks, Future Of Aerospace With Cramer

Boeing CFO Talks Buybacks, Future Of Aerospace With Cramer

A market need for 43,000 aircrafts exists in the next 20 years, Boeing Co (NYSE: BA) Chief Financial Officer Greg Smith told CNBC's Jim Cramer last week.

What Happened

Shares of Boeing moved higher Tuesday in reaction to the company's dividend hike announcement and a new $20-billion share buyback program.

Speaking on Cramer's "Mad Money" show the same day, Smith said he shareholder returns are a testament to Boeing's strong business.

During the most recent reported quarter, the company produced a record amount of commercial airplanes, while its backlog of orders amounts to 5,800 units, or the equivalent of seven years of production, the CFO said.

Over the next two decades, demand for new aircraft will come from a combination of a growing market and established markets replacing aging planes, Smith said.

Boeing has "the right products and services in the marketplace to win," he said.

Smith On China

Boeing's relationship with China dates back half a century, and Smith said the country will account for an estimated 7,700 of the 43,000 aircraft sold over the next 20 years.

The continued growth of the Chinese middle class coupled with the fact that just 10 percent of the population holds a passport implies "great opportunities" for Boeing over the long-term, he said. 

Related Links:

Canaccord Weighs In On Boeing's Dividend, Embraer Deal

Is Weakness In Boeing A Sell Signal Or Buying Opportunity?


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