Textron Announces New Ten-Million-Share Repurchase Authorization
23 February 2000
Textron Announces New Ten-Million-Share Repurchase Authorization; Textron Declares Quarterly Dividend of 32.5 cents Per Share on Common Stock
PROVIDENCE, R.I.--Feb. 23, 2000--Textron announced today that its Board of Directors has authorized a new ten-million-share repurchase program. This program supercedes the 4.8 million shares that remained under its previous authorization."We are increasing our existing share authorization program as a reflection of our confidence in delivering strong results in 2000," said Textron Chairman and Chief Executive Officer Lewis B. Campbell. "The increased authorization will enable us to be more aggressive in repurchasing shares, beginning immediately," he continued. Share repurchases under the new authorization will be made as market conditions permit, and will be consistent with Textron's stated financial goals.
Textron's Board of Directors also declared today a quarterly dividend of thirty-two and a half cents (32.5(cent)) per share on the company's Common Stock.
A quarterly dividend of fifty-two cents (52(cent)) per share on the Corporation's $2.08 Cumulative Convertible Preferred Stock, Series A, and thirty-five cents (35(cent)) per share on the $1.40 Convertible Preferred Dividend Stock, Series B were also declared by Textron's Board of Directors.
All dividends will be paid on April 1, 2000, to holders of record at the close of business on March 10, 2000.
"We are firmly committed to increasing shareholder value through further improving the effectiveness and efficiency of every aspect of our operations," highlighted Campbell. "We are continuing to drive organic growth through superior product development and customer service and aggressively improving margins and returns through the most efficient management of our assets and costs," he added.
Textron Inc. is an $11.6 billion, global, multi-industry company with market-leading operations in Aircraft, Automotive, Industrial and Finance. Textron has a workforce of over 68,000 employees and major manufacturing facilities in 30 countries. Textron is among Fortune magazine's "Global Most Admired Companies." Additional information is available at www.textron.com.
Forward-looking Information: Certain statements in this release are forward-looking statements, including those that discuss strategies, goals, outlook or other non-historical matters; or project revenues, income, returns or other financial measures. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in the statements, including the following: (a) the extent which Textron is able to successfully integrate acquisitions, (b) changes in worldwide economic and political conditions and associated impact on interest and foreign exchange rates, (c) the occurrence of work stoppages and strikes at key facilities of Textron or Textron's customers or suppliers, (d) the extent to which the Company is able to successfully develop, introduce, and launch new products and enter new markets, and (e) the level of government funding for Textron products. For the Aircraft Segment: (a) the timing of certifications of new aircraft products and (b) the occurrence of a severe downturn in the U.S. economy that discourages businesses from purchasing business jets. For the Automotive Segment: (a) the level of consumer demand for the vehicle models for which Textron supplies parts to automotive original equipment manufacturers ("OEM's") and (b) the ability to offset, through cost reductions, pricing pressure brought by automotive OEM customers. For the Industrial Segment: the ability of Textron Fastening Systems to offset, through cost reductions, pricing pressure brought by automotive OEM customers. For the Finance Segment: (a) the level of sales of Textron products for which TFC offers financing and (b) the ability of TFC to maintain credit quality and control costs when entering new markets.