Market Overview

UPS Board Approves Stock Repurchase Authorization of $5B


The UPS (NYSE: UPS) Board of Directors today declared a regular quarterly dividend and approved a $5 billion stock repurchase authorization.

Meeting in regular session following the company's annual shareowners' meeting, the Board declared a regular quarterly dividend of $0.57 per share on all outstanding Class A and Class B shares. The dividend, which reflects a 10 percent increase approved in February, is payable May 30, 2012, to shareholders of record on May 14, 2012.

The new share repurchase authorization has no expiration date and replaces one originally announced in 2008.

UPS also announced several financial steps designed to facilitate the acquisition of TNT Express N.V. while maintaining its commitment to a strong balance sheet and returns to shareowners.

UPS expects to use approximately $5 billion of available cash and issue about $1.8 billion in new debt to finance the acquisition of TNT Express. Compared to the company's initial guidance, this represents a $2 billion increase in cash used to fund the acquisition.

In addition, the company revised guidance for share repurchases. UPS plans to spend $1.5 billion on share repurchases in 2012 and expects the same level of activity in 2013.

Posted-In: News Buybacks


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