Summary
Emerson Electric Co. (EMR) announced on March 17, 2020, that its Board of Directors has authorized a new share repurchase program of up to 60 million shares of common stock. This new authorization is incremental to the existing 2015 program, which is nearing completion with approximately 7 million shares remaining. This action signals management's confidence in the company's financial health and its commitment to returning value to shareholders. While the new authorization is for an indefinite period ("over the next several years"), Emerson expects to repurchase approximately $1.5 billion in shares during fiscal year 2020, subject to market conditions. The repurchases can be executed through open market or private transactions, with the specifics determined by management. These repurchased shares are intended for employee benefit plans and other corporate uses, aligning with Emerson's established capital allocation strategy.
Key Highlights
- 1Board of Directors authorized the repurchase of 60 million shares of common stock.
- 2This new authorization is in addition to an existing program nearing completion.
- 3Approximately 7 million shares remain under the prior 2015 authorization.
- 4Emerson expects to repurchase approximately $1.5 billion in shares during fiscal year 2020.
- 5Share repurchases are dependent on market conditions and other factors.
- 6Repurchased shares may be utilized for employee benefit plans and corporate purposes.
- 7The company included standard forward-looking and cautionary statements regarding risks and uncertainties.