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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. (NYSE Euronext:TNTE) 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.
“UPS’s legacy of financial strength allows us to complete the
acquisition of TNT primarily using cash,” said UPS Chairman and CEO
Scott Davis. “At the same time, UPS remains committed to its policy of
shareowner returns through dividends and share repurchases. We believe
this acquisition creates a global leader in the logistics industry,
enhancing long-term growth for UPS investors.”
UPS and TNT Express announced on March 19 a definitive all-cash offer of
€9.50 per ordinary share of TNT, valuing the deal at roughly $6.8
billion. The acquisition, which must be reviewed by European Union
regulatory authorities, is expected to close in the third quarter.
In deciding to use a combination of cash and new debt, the company said
it would determine details of maturity and a timetable for the new
issuance at a later date.
UPS (NYSE:UPS) is a global leader in logistics, offering a broad range
of solutions including the transportation of packages and freight; the
facilitation of international trade, and the deployment of advanced
technology to more efficiently manage the world of business.
Headquartered in Atlanta, UPS serves more than 220 countries and
territories worldwide. The company can be found on the Web at UPS.com
and its corporate blog can be found at blog.ups.com. To get UPS news
direct, visit pressroom.ups.com/RSS.
Except for historical information contained herein, the statements made
in this release constitute forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Such forward-looking statements,
including statements regarding the intent, belief or current
expectations of UPS and its management regarding the company's strategic
directions, prospects and future results, involve certain risks and
uncertainties. Certain factors may cause actual results to differ
materially from those contained in the forward-looking statements,
including economic and other conditions in the markets in which we
operate, our competitive environment, increased security requirements,
strikes, work stoppages and slowdowns, changes in energy prices,
governmental regulations and other risks discussed in the company's Form
10-K and other filings with the Securities and Exchange Commission,
which discussions are incorporated herein by reference.