UPDATE: FedEx Announces 32M Share Repurchase Program
FedEx (NYSE: FDX) today announced that its Board of Directors has authorized a new share repurchase program of up to 32 million of its outstanding shares of common stock. These shares augment the remaining 7.4 million shares authorized for purchase under the existing share repurchase program. The shares may be repurchased from time to time in the open market or in privately negotiated transactions.
“The stock buyback plan reaffirms our confidence in the company's strategy and long-term growth potential. It also demonstrates our ongoing commitment to delivering value to our shareowners,” said Frederick W. Smith, chairman, president and chief executive officer of FedEx Corp. “Our strong balance sheet provides us with the flexibility to initiate this stock repurchase program while continuing to execute our strategic growth initiatives.”
Repurchases will be made from time to time at the company's discretion, based on ongoing assessments of the capital needs of the business, the market price of its common stock and general market conditions. No time limit was set for the completion of the repurchase program, and the program may be suspended or discontinued at any time.
During the first quarter of fiscal 2014, the company repurchased 2.8 million shares of its common stock. On September 30, 2013, there were 317 million common shares outstanding.
FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $45 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the world's most admired and trusted employers, FedEx inspires its more than 300,000 team members to remain "absolutely, positively" focused on safety, the highest ethical and professional standards and the needs of their customers and communities. For more information, visit news.fedex.com.
Certain statements in this press release may be considered forward-looking statements, such as statements relating to management's views with respect to future events and financial performance. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions in the global markets in which we operate, legal challenges or changes related to FedEx Ground's owner-operators, our ability to execute on our business realignment program, new U.S. domestic or international government regulation, the impact from any terrorist activities or international conflicts, our ability to effectively operate, integrate and leverage acquired businesses, changes in fuel prices and currency exchange rates, our ability to match capacity to shifting volume levels and other factors which can be found in FedEx Corp.'s and its subsidiaries' press releases and filings with the SEC.
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