* Boeing CEO says making progress in Embraer talks
* Reiterates support for fair global trade
* Believes
* Engine makers an area to watch, GE performing well
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*(Adds background on cash deployment targets)
By Tim Hepher
Chairman and Chief Executive Dennis Muilenburg also toldReuters in an interview that Boeing was "making progress" intalks with the Brazilian aerospace company. It continues tostudy a number of possible structures for a deal, which someoutside analysts have said could value Embraer at
"Acquisitions of the scale of Embraer are not only verydoable for us, they are also things we can selectively do,aligned with our (cash deployment) strategy," Muilenburg said.
"We have plenty of cash horsepower to do all three things:invest organically, return to shareholders and then make thesetargeted acquisitions," he added.
Boeing is targeting operating cashflow of
Brazilian President Michel Temer is weighing a proposal forthe two companies to forge a commercial aviation venture, hisoffice said last week, after the government opposed an outrighttakeover of Embraer which also builds military aircraft.
"We are not done yet; there is still work to go. But we aremaking progress so I am hopeful that we can complete it,"Muilenburg said, reiterating the deal was not a "must" forBoeing.
"We continue to evaluate all parts of the enterprise,different potential ownership structures" that range fromsupport to full ownership, he said.
Boeing shares closed up 0.5 percent at
Asked whether such overseas tie-ups were more difficult withrising protectionist sentiment, Muilenburg said Boeing would notlet up on its global expansion which, if done strategically,would increase jobs in
OPEN TRADE
Speaking in his 36th-floor
He reiterated his longstanding general support for opentrade. "Our position is we want free and open trade, good solidglobal trade is good for our business and we are going to bestrong proponents of that," he said.
Muilenburg downplayed concerns of a backlash from
"You see some tough rhetoric but when I look below thesurface, and having talked with both President Trump andPresident Xi (Jinping), I think there is a true desire to have aproductive trade relationship between the two countries," hesaid.
Muilenburg said Boeing had not decided whether to appealafter losing a price dumping case against
He said Boeing was in "no rush" to decide whether to launcha new mid-market jetliner, which could enter service in 2024-25.
"It is a decision we will probably get to over the next yearor so," he said.
The jet is expected to pioneer an advanced production systemfor Boeing, which is already building on record output of itssmaller 737s, Muilenburg said, noting that suppliers are keepingup with demand.
Asked about engine makers, most of which have facedtechnical or management problems in recent years, Muilenburgsaid: "It is certainly something we are keeping an eye on. Iwill say that despite some of the challenges you have seen outthere, our engine partners have been doing well on ourcommercial programs."
Boeing's biggest supplier, General Electric Co, isundergoing a corporate makeover after heavy losses, but it isdelivering engines on time for the 737 MAX through its CFMventure with Safran of
GE, whose stock was the worst performer in the Dow Jonesindustrial average last year as Boeing led the index higher, iscoping well with the development of a new engine for the 777Xjet, he said.
"While it is an area to watch, I feel comfortable with wherewe are at," Muilenburg said.(Additional reporting by Alwyn Scott, Brad Haynes; Editing byDaniel Bases, Jonathan Oatis and Richard Chang)
