During a presentation this morning at the Morgan Stanley Basic Materials Conference in New York, Richard A. Lorraine, senior vice president and chief financial officer, announced that the Board of Directors of Eastman Chemical Company has approved the repurchase of up to $300 million of Eastman common stock, effective immediately.
During his remarks, Lorraine said, "Our plan to repurchase shares reflects both our strong financial profile and our confidence in future cash flows while also preserving flexibility as we continue to fund profitable growth initiatives. It also demonstrates our commitment to enhancing stockholder value."
Share repurchases will be funded with available cash. Eastman expects to implement the program through purchases made from time to time in either the open market or through private transactions.
The timing, volume, and nature of share repurchases will be at the discretion of management, depending on market conditions, applicable securities laws, and other factors, and may be suspended or discontinued at any time.
Eastman may also implement all or part of the repurchases under a Rule 10b5-1 trading plan, which would allow repurchases under pre-set terms at times when Eastman might otherwise be prevented from doing so under insider trading laws or because of self-imposed trading blackout periods.
The share repurchase program announced replaces Eastman's existing Board share repurchase authorization, under which $288 million remained available.
Eastman Chemical Company, USA