For the second time this year, Caterpillar Inc. is initiating a $1 billion accelerated stock repurchase program, this time with Societe Generale.
The construction equipment giant is set to repurchase $1 billion of its common stock, with an immediate delivery of about 11 million shares based on current market prices.
"The continued strength of our balance sheet and strong cash flow puts us in a good position to reaffirm our commitment to stockholders, even in the midst of a downturn," said Caterpillar chairman and CEO Doug Oberhelman. "Repurchasing an additional $1 billion of Caterpillar stock in the third quarter of 2013 will bring our total 2013 stock repurchases to $2 billion. This, combined with the 15-percent increase in our quarterly dividend announced in June, clearly shows how we are taking advantage of our strong cash position to deliver on our commitments to our stockholders."
The term of the transaction, due for completion in September, will largely determine the actual number of repurchased shares, as well as aggregate cost. Final figures will be based on Caterpillar's volume-weighted average stock price during the term.
Caterpillar's previous $1 billion repurchase program, announced in April, was completed this past June.