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Kimberly-Clark BOD green signals share repurchase
16 Sep '05
2 min read
Personal care products information provider Kimberly-Clark Corporation announced that its Board of Directors (BOD) has approved the repurchase of 50 million shares of Kimberly-Clark common stock during the next several years.
This authorization augments approximately 7 million shares remaining from a June 2004 program. The actual number of shares purchased and the timing of the transactions will depend upon prevailing market conditions.
In July, Kimberly-Clark announced its plan to boost its share repurchase target to $1.5 billion, up from its previous plan to buy back at least $1.0 billion worth of KMB shares in 2005. During the first half of this year, K-C bought back 7.7 million shares at a total cost of $501 million.
Chairman and Chief Executive Officer Thomas J. Falk stated that this action reflects the continuing strength of their balance sheet and strong cash flow. In the first six months of 2005, they have returned cash to their shareholders of about $900 million through dividends and share repurchases, and in the second half of the year, they expect to return an additional $1.4 billion.
Kimberly-Clark's longer-term objective is to repurchase approximately 2 to 3 percent of the company's common stock annually. In 2004, the company spent $1.6 billion to repurchase 24.8 million shares. Since 2001, Kimberly-Clark has repurchased approximately 70 million shares and reduced shares outstanding by nearly 57 million to 476.6 millionas of June 2005.
This authorization augments approximately 7 million shares remaining from a June 2004 program. The actual number of shares purchased and the timing of the transactions will depend upon prevailing market conditions.
In July, Kimberly-Clark announced its plan to boost its share repurchase target to $1.5 billion, up from its previous plan to buy back at least $1.0 billion worth of KMB shares in 2005. During the first half of this year, K-C bought back 7.7 million shares at a total cost of $501 million.
Chairman and Chief Executive Officer Thomas J. Falk stated that this action reflects the continuing strength of their balance sheet and strong cash flow. In the first six months of 2005, they have returned cash to their shareholders of about $900 million through dividends and share repurchases, and in the second half of the year, they expect to return an additional $1.4 billion.
Kimberly-Clark's longer-term objective is to repurchase approximately 2 to 3 percent of the company's common stock annually. In 2004, the company spent $1.6 billion to repurchase 24.8 million shares. Since 2001, Kimberly-Clark has repurchased approximately 70 million shares and reduced shares outstanding by nearly 57 million to 476.6 millionas of June 2005.
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