ST. LOUIS, May 6, 2008 -- The board of directors of Emerson today declared the regular quarterly cash dividend of thirty cents ($0.30) per share of common stock payable June 10, 2008, to stockholders of record May 16, 2008.
The board also authorized the repurchase of up to 80 million shares of common stock. This authorization is in addition to the 80 million share repurchase program authorized by the board in 2001 (as adjusted for Emerson’s December 2006 two-for-one stock split). As of the end of March, the company had purchased 74.4 million of the 80 million shares authorized in 2001, and approximately 782 million common shares were outstanding.
“Emerson’s strong cash flow and overall financial position allow the company to continue to invest in key long-term growth areas, including global expansion and new technology as well as returning a significant portion of cash to the shareholders through share repurchase and cash dividends” said Chairman, Chief Executive Officer and President David N. Farr.
Emerson’s goal is to return 50 to 60 percent of operating cash flow to shareholders through share repurchase and dividends.
Similar to the 2001 repurchase authorization, the company expects to implement the additional repurchase program over the next four to five years. Purchases may be made in the open market, or in privately negotiated transactions. The level of purchase activity will vary depending on market conditions and other investment opportunities.