Boeing increasing stock buyback, quarterly dividend
The Boeing Co. said Monday that its board of directors approved a $10 billion increase in its stock buyback program. The aircraft maker will also raise its quarterly dividend payment by about 50 percent.
Chairman and CEO Jim McNerney said the moves reflect its operational performance, increasing cash flow and confidence in the future.
The increase in the share buyback program is in addition to the $800 million remaining authority in Boeing’s current stock repurchase program. Boeing will resume buying back its own stock in January and it expects repurchases to be made over the next two to three years.
The Chicago-based company said it has declared a quarterly dividend of 73 cents per share payable March 7, 2014, to shareholders of record Feb. 14.
Following the announcement, Boeing shares rose $1.78, or 1.8 percent, to $136.50 in after-hours trading. They closed at $134.72 Monday.
Gannett plans to divest six TV stations in Belo purchase
The U.S. Justice Department on Monday attached conditions to media company Gannett’s $1.5 billion purchase of Belo Corp. and its 20 TV stations, saying it has to sever ties with KMOV-TV, a CBS affiliate in St. Louis.
Gannett Co. Inc. owns KSDK-TV in St. Louis. To comply with federal station ownership rules, it had already planned to sell six Belo stations, including KMOV-TV, to Sander Media LLC for $101 million.
But the DOJ said Gannett and Sander had agreed to align advertising sales incentives in St. Louis, potentially driving up rates. Gannett said Monday that Sander has agreed to divest KMOV-TV next year.
Discount retailer Loehmann’s files for bankruptcy again
Discount retailer Loehmann’s has filed for bankruptcy protection for the third time and plans to liquidate its business.
Loehmann’s Holdings Inc. on Sunday filed for Chapter 11 bankruptcy protection in federal bankruptcy court in Manhattan. It indicated in filings that it plans to sell its remaining assets in an auction subject to the court’s approval.
The New-York based retailer said in a statement that its business was undermined by increased competition in the off-price retail niche and limited access to capital. The company filed for bankruptcy protection in 2010 due to overwhelming debt and emerged in 2011. It also filed for Chapter 11 reorganization in 1999, emerging in 2000 after closing 25 stores..
Herbalife re-audit shows no change to prior statements
Herbalife says a re-audit of more than three years of its financial results found no material changes to its prior financial statements. That’s good news for the company which has faced intense criticism over the past year for its business structure and leadership.