UPS Board Declares Dividend
May 03 2012 - 4:30PM
Business Wire
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.
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