Eastman expands share buyback
From Staff Reports
May 6, 2013 at 11 p.m.
Eastman Chemical Co. said Monday its board approved an increase in its share repurchase authorization by up to an additional $300 million. This is in addition to the amount remaining under the existing $300 million of share repurchases authorized in February 2011.
Eastman said it expects to fund the share buyback through a combination of available cash on hand and purchases made in either the open market or private transactions. Decisions regarding the timing, quantity, and nature of share repurchases will be made by management, depending on the prevailing market conditions, applicable securities laws and other relevant factors.
Kingsport, Tenn.,-based Eastman, whose Texas Operations employ more than 1,500 people in Longview, said the moves testify to its commitment to boosting shareholder value while retaining its strong financial position. The company bought back shares worth $32 million in the most recent quarter.
Last month, Eastman posted first quarter earnings of $1.62 per diluted share, excluding costs associated with the acquisition of Solutia Inc.
Revenues jumped 26.7 percent to $2.3 billion, up from $1.8 billion.
Including one-time costs, Eastman reported earnings of $1.57 per diluted share compared to $1.13 per diluted share in first quarter 2012.
In trading Monday on the New York Stock Exchange, shares in Eastman rose nearly 1 percent to close at $68.52.