Eastman expects to implement program thru repurchase

27 Oct '07

2 min read

Eastman Chemical Company announced that the Board of Directors has approved the repurchase of up to $700 million of Eastman common stock. This brings the total of share repurchases authorized in 2007 to $1 billion. In addition, the company said that the $300 million in share repurchases authorized by the Board in February 2007 were completed during the third quarter.

Under the $300 million share repurchase program, the company purchased a total of 4.6 million shares at an average price of $65 per share in the first three quarters of 2007. The company had 81 million shares outstanding as of September 30, 2007.

"The completion of our $300 million share repurchase program and the authorization of an additional $700 million of share repurchases reflect both our strong financial profile and our confidence in future cash flows while also preserving financial flexibility as we continue to fund profitable growth initiatives," said Richard A. Lorraine, senior vice president and chief financial officer.

"These actions also demonstrate our commitment to enhancing stockholder value." Priorities for use of available cash continue to be paying the dividend, funding targeted growth initiatives, and repurchasing shares.

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.

Eastman Chemical Company

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