Following yesterday’s Q2 fiscal report Praxair has authorised a new share repurchase program for up to $1.5bn of its common stock. The company says the change reflects a strong balance sheet and free-cash-flow generation.
Repurchases will be financed by available cash and debt and may occur periodically on the open market which can include the use of 10b5-1 trading plans or through negotiated transactions, subject to conditions. Steve Angel, Chairman and CEO, said, “This new program reflects our confidence in the long-term growth prospects for our business, and our commitment to increasing shareholder value.”
“Our first investment priority will continue to be profitable growth projects. Due to our high return on capital, we expect to generate operating cash flow well in excess of our capital requirements.$quot;
At the same time the Board declared a quarterly dividend of 45 cents per share – unchanged on the previous quarter. The dividend is payable on 15th September to those shareholders of record on 7th September.