PROVIDENCE – In a classic case of lemons to lemonade, Textron Inc. (NYSE: TXT) today announced that, “in light of current market conditions, it is accelerating the pace of its share repurchase program.”
The multi-industry company said it plans to spend as much as $500 million in the third and fourth quarters to buy back outstanding shares of common stock.
About 19.2 million shares remain on the current buyback authorization – originally for 24 million shares – approved by Textron’s board of directors in July 2007. In the first half of this year, the company spent $190 million to repurchase about 3.6 million shares.
“Given the strength we see in our aircraft and defense businesses and our outlook for strong earnings growth over the next three to five years, we think this is an excellent opportunity to capture value that we believe is missing from our shares at current levels,” Lewis B. Campbell, the company’s chairman, president and CEO, said in announcing the buyback plan.
The company last week posted a second-quarter profit of $258 million, or 22.9 percent more than a year ago. (READ MORE) As of the period’s end on June 28, the combined order backlog at its Cessna Aircraft Co., Bell Helicopter and Textron Systems divisions had reached a record $23.5 billion, Textron said in its quarterly report.
Also today, the Textron board of directors declared a regular quarterly dividend of 23 cents per share on the company’s common stock. It also declared dividends of 52 cents per share on Textron’s $2.08 Series A Cumulative Convertible Preferred Stock and 35 cents per share on the $1.40 Series B Convertible Preferred Dividend Stock. The dividends all will be payable Oct. 1 to shareholders of record at the close of business on Sept. 12.
Textron Inc. (NYSE: TXT) is a $13.2 billion company employing 44,000 people in 34 countries. Its brands include Bell Helicopter, Cessna Aircraft Co., Jacobsen, Kautex, Lycoming, E-Z-GO and Greenlee, among others. Additional information is available at www.textron.com.
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