ITW Board of Directors Authorize New $6 Billion Share Repurchase Program;
Board Also Approves 10.5 Percent Dividend Increase
GLENVIEW, Ill., Aug. 2, 2013
GLENVIEW, Ill., Aug. 2, 2013 /PRNewswire/ -- Illinois Tool Works Inc. (NYSE:
ITW) today announced that its board of directors approved a new share
repurchase program that authorizes management to buy back up to $6 billion of
the Company's common stock over an open ended period of time. The full
authorization represents approximately 81 million shares based on ITW's
closing share price on August 1, 2013.
The Company's existing share repurchase authorization of $4.0 billion was
announced in May of 2011 and has approximately $1.2 billion remaining in that
program as of June 30, 2013.
The board also authorized a 10.5 percent increase in the dividend payout to
shareholders, representing a quarterly increase of $0.04 per share―or $0.16
per share annually—versus the current dividend rate. Regular quarterly cash
dividends will now total $0.42 per share or $1.68 per share on an annual
basis. The dividend will be paid on October 8, 2013 to stockholders of record
as of September 30, 2013.
"As part of our enterprise strategy, the Company is strongly committed to
capital allocation priorities that emphasize both organic investments as well
as the return of free operating cash flow to investors," said E. Scott Santi,
president and chief executive officer. "We will continue to focus on a strong
dividend and external investments such as share repurchases and selective
This earnings release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995, including, without
limitation, statements regarding dividend policy and capital allocation
priorities. These statements are subject to certain risks, uncertainties and
other factors which could cause actual results to differ materially from those
anticipated. Such factors include those contained in ITW's 2012 Form 10-K.
ITW is a Fortune 200 global diversified industrial manufacturer of value-added
consumables and specialty equipment with related service businesses. The
company focuses on solid growth and strong returns across its worldwide
platforms and businesses. These businesses serve local customers and markets
around the globe, with a significant presence in developed as well as emerging
markets. ITW's adjusted revenues totaled $16.3 billion in 2012, with more than
half of these revenues generated outside of the United States.
SOURCE Illinois Tool Works Inc.
Contact: John L. Brooklier, 847-657-4104, firstname.lastname@example.org
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