Badger Meter Plans Stock Split, Dividend Increase
August 12 2016 - 6:30PM
Dow Jones News
Industrial company Badger Meter Inc., which had been considering
a sale, said Friday that it instead planned to raise its dividend
15% and split its stock 2-for-1 in an effort to boost shareholder
returns.
The Milwaukee company said that after reviewing its options, its
board had determined this two-step plan was the best way to
increase shareholder value.
The company makes meters and other products that measure water,
oil and chemicals. Customers include oil-and-gas companies and
municipal-water utilities, its largest segment by sales volume. In
2015, it reported that profit fell 13% to $25.9 million on $377.7
million in sales.
Chief Executive Richard A. Meeusen said Friday that Badger Meter
intends to look for opportunities, including acquisitions, and
further international expansion. Still, while the company is no
longer pursuing a sale, Mr. Meeusen left the door open for possible
deal-making.
"There's nothing precluding anyone from making an offer," the
chief executive said.
The dividend of 23 cents a share, up from 20 cents, and the
2-for-1 split will be paid on Sept. 15 to shareholders of record
Aug. 31.
Shares, up 21% this year, fell 6% to $66.98 in after-hours
trading.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
August 12, 2016 18:15 ET (22:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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