BHI Announces Stock Repurchase Plan and Dividend Increase
Baker says that its Board of Directors has authorized the company to repurchase up to $455.5 million of common stock increasing the total amount that the company may repurchase to $500.0 million. The board also authorized a regular dividend of $0.13 per share, an increase of approximately 13% from the previous regular quarterly dividend of $0.115 per share.
Stock Repurchase Plan
The $455.5 million repurchase plan approved by the board today is additive to the balance of $44.5 million remaining from the Board's September 2002 authorization and increases the total amount of common stock that the company may repurchase from time to time to $500.0 million. Repurchases are expected to be made on a discretionary basis in the open market or otherwise at times and in amounts as determined by management, subject to market conditions, applicable legal requirements, available cash and other factors. At yesterday's closing stock price of $56.60 per share, approximately 8.8 million shares, or 3% of the company's approximately 343 million outstanding shares, could be repurchased under this program.
Chad C. Deaton, Chairman and CEO of Baker Hughes stated, "The stock repurchase plan and dividend increase announced today are a direct result of the company's ongoing financial discipline, the current and projected strength of its balance sheet, and the expected future performance of the company. These actions give us the ability to more effectively manage our capital structure and balancing this objective with other strategic options, including internal and external investment opportunities."
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