Like many other companies in the United States, Boeing also put aside the rising deficit in the pension fund for year, while distributing shareholder awards. Now the company has begun to pay attention, but the way it will fill it up provokes criticism among some of the specialists. Last month, Boeing made the biggest contribution to its pension fund for over a decade. But instead of investing money, the aircraft manufacturer transferred its own shares worth 3.5 billion USD into the fund, including those it bought in recent years. It is expected that next year they will be sold.
The move is courageous and was approved by many investors on Wall Street. But experts say the risk is not worth enough. After the record rally this year, with shares increased of 58%, Boeing predicts that it will be able to continue its good financial results and the shares will rise further.
But during the years, the aircraft manufacturer had the money, as the company has generated enough to buy back its own shares worth 30 billion USD.
If this plan goes wrong, the 57-billion-dollar fund may get in worse position than before. At the moment, the “hole” in the pension fund amounts to 20 billion USD. And in proportion to the profit, the company’s shares are traded at the highest level in a decade, which is a sign that there may be a retreat.
Boeing disagrees and believes the strategy can not fail. It is early to predict how the situation will develop for a company, which shares are historically influenced too much by the movement of the entire economy.
