Caterpillar CAT
today announced it has entered into a definitive agreement with Societe
Generale to purchase $1 billion of its common stock under an accelerated
stock repurchase transaction. In April of 2013, the company announced a
similar $1 billion transaction, which was completed in June of 2013.
"The continued strength of our balance sheet and strong cash flow puts us in
a good position to reaffirm our commitment to stockholders, even in the
midst of a downturn," said Caterpillar Chairman and CEO Doug Oberhelman.
"Repurchasing an additional $1 billion of Caterpillar stock in the third
quarter of 2013 will bring our total 2013 stock repurchases to $2 billion.
This, combined with the 15-percent increase in our quarterly dividend
announced in June, clearly shows how we are taking advantage of our strong
cash position to deliver on our commitments to our stockholders."
Pursuant to the accelerated stock repurchase agreement, Caterpillar has
agreed to repurchase $1 billion of its common stock from Societe Generale,
with an immediate delivery of approximately 11 million shares based on
current market prices. The final number of shares to be repurchased and the
aggregate cost to Caterpillar will be based on Caterpillar's volume-weighted
average stock price during the term of the transaction, which is expected to
be completed in September of 2013. In February 2007, the Board of Directors
authorized the repurchase of $7.5 billion of Caterpillar stock, and in
December 2011, the authorization was extended through December 2015. Through
the end of the second quarter of 2013, $4.8 billion of the $7.5 billion
authorization was spent.
About Caterpillar:
For more than 85 years, Caterpillar Inc. has been making sustainable
progress possible and driving positive change on every continent. With 2012
sales and revenues of $65.875 billion, Caterpillar is the world's leading
manufacturer of construction and mining equipment, diesel and natural gas
engines, industrial gas turbines and diesel-electric locomotives. The
company also is a leading services provider through Caterpillar Financial
Services, Caterpillar Remanufacturing Services and Progress Rail Services.
More information is available at: http://www.caterpillar.com.
Forward-Looking Statements
Certain statements in this press release relate to future events and
expectations and are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Words such as "believe,"
"estimate," "will be," "will," "would," "expect," "anticipate, " "plan,"
"project," "intend," "could," "should" or other similar words or expressions
often identify forward-looking statements. All statements other than
statements of historical fact are forward-looking statements, including,
without limitation, statements regarding our outlook, projections, forecasts
or trend descriptions. These statements do not guarantee future performance,
and we do not undertake to update our forward-looking statements.
Caterpillar's actual results may differ materially from those described or
implied in our forward-looking statements based on a number of factors,
including, but not limited to: (i) global economic conditions and economic
conditions in the industries and markets we serve; (ii) government monetary
or fiscal policies and infrastructure spending; (iii) commodity or component
price increases, fluctuations in demand for our products, or limited
availability of raw materials and component products, including steel; (iv)
our and our customers', dealers' and suppliers' ability to access and manage
liquidity; (v) political and economic risks and instability, including
national or international conflicts and civil unrest; (vi) our and Cat
Financial's ability to: maintain credit ratings, avoid material increases in
borrowing costs, and access capital markets; (vii) the financial condition
and credit worthiness of Cat Financial's customers; (viii) changes in
interest rates or market liquidity; (ix) changes in financial services
regulation; (x) inability to realize expected benefits from acquisitions,
including ERA Mining Machinery Limited, and divestitures, including the
divestiture of the Bucyrus International, Inc. distribution business to our
independent dealers; (xi) international trade and investment policies; (xii)
market acceptance of our products and services; (xiii) changes in the
competitive environment, including market share, pricing and geographic and
product mix of sales; (xiv) successful implementation of capacity expansion
projects, cost reduction initiatives and efficiency or productivity
initiatives, including the Caterpillar Production System; (xv) inventory
management decisions and sourcing practices of our dealers or original
equipment manufacturers; (xvi) compliance with environmental laws and
regulations; (xvii) alleged or actual violations of trade or anti-corruption
laws and regulations; (xviii) additional tax expense or exposure; (xix)
currency fluctuations; (xx) our or Cat Financial's compliance with financial
covenants; (xxi) increased pension plan funding obligations; (xxii) union
disputes or other labor matters; (xxiii) significant legal proceedings,
claims, lawsuits or investigations; (xxiv) compliance requirements imposed
if carbon emissions legislation and/or regulations are adopted; (xxv)
changes in accounting standards; (xxvi) failure or breach of information
technology security; (xxvii) adverse effects of natural disasters; and
(xxviii) other factors described in more detail under "Item 1A. Risk
Factors" in our Form 10-K filed with the SEC on February 19, 2013 for the
year ended December 31, 2012. This filing is available on our website at
www.caterpillar.com/secfilings.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in