 |
» |
|
|
|
HP Announces $1.3 Billion Accelerated Share Repurchase; HP Board of Directors Authorizes Additional $3 Billion for Share Repurchases
PALO ALTO, Calif., Sept. 20, 2004
HP today announced that it repurchased approximately $1.3 billion of its outstanding common stock in an accelerated share repurchase agreement. Along with additional repurchases during the quarter, HP expects repurchases for the fourth quarter of fiscal year 2004 to total approximately $2.1 billion, or 4.0 percent of total shares outstanding. The share repurchases during the quarter are expected to utilize the remainder of the share repurchase authorization approved by HP's board of directors in May 2004.
The shares were purchased from Merrill Lynch under an accelerated share repurchase agreement. The accelerated share repurchase agreement allowed HP to purchase the shares immediately from Merrill Lynch, with Merrill Lynch purchasing the shares in the open market over the next several months.
HP's board of directors also approved the authorization of an additional $3 billion for share repurchases. The company intends to use the authorization to repurchase shares opportunistically as a means of returning cash to its shareholders, as well as offsetting dilution from the issuance of shares under employee benefit plans.
"HP has accelerated its share repurchases in recent quarters and today's announcement signals our intent to aggressively repurchase shares in the immediate future. We believe that at current price levels, HP shares represent an attractive investment," said Carly Fiorina, HP chairman and chief executive officer.
"This purchase reflects our confidence in our long-term growth and profitability. Our strong balance sheet and significant cash flow from operations allow us the flexibility to simultaneously invest in our current business, pay one of the highest dividends in the industry, accelerate our share repurchases and opportunistically take advantage of strategic opportunities."
About HP
HP is a technology solutions provider to consumers, businesses and institutions globally. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. For the four fiscal quarters ended July 31, 2004, HP revenue totaled $78.4 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at www.hp.com.
This press release contains forward-looking statements that involve risks, uncertainties and assumptions. If the risks or uncertainties materialize or the assumptions prove incorrect, the results and activities of HP and its consolidated subsidiaries may differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to statements regarding expected or anticipated growth, profitability, earnings, revenue, expenses, margins, cash balances or cash flow, or other financial items; any statements of the plans or objectives of management for future operations or actions, including payment of dividends or repurchase of shares; any statements relating to share value; any statements regarding expectation or belief; and any statements of assumptions underlying any of the foregoing. The risks, uncertainties and assumptions referred to above include but are not limited to macroeconomic and geopolitical trends and events; the executions and performance of contracts by suppliers, customers and partners; the difficulty of aligning expense levels with revenue changes; the challenge of managing asset levels, including inventory; assumptions related to pension and other post-retirement costs; information technology systems risks, including system migration risks; acceptance of our products in the market; and other risks that are described from time to time in HP's Securities and Exchange Commission reports, including but not limited to HP's Quarterly Report on Form 10-Q for the period ended July 31, 2004 and other reports filed after HP's Annual Report on Form 10-K for the fiscal year ended October 31, 2003. HP assumes no obligation and does not intend to update these forward-looking statements.
|
Printable version
