Breaking News
FONT-SIZE Plus   Neg
Share SHARE

IBM Authorizes Addl. $5 Bln Stock Buyback; Declares Qtly Dividend

RELATED NEWS
Trade IBM now with 

Information technology giant International Business Machines Corp. (IBM: Quote) said Tuesday that its board has authorized additional funds of $5 billion for stock repurchases, and also declared a regular quarterly cash business-machines-corp.aspx'>dividend.

"Our strategy to deliver high value solutions drives profit, earnings per share and cash growth. We have achieved outstanding shareholder returns over the last decade and we are positioned well for the future," Chairman, President and CEO Virginia Rometty said in a statement.

Armonk, New York-based IBM noted that the current stock repurchase authorization is in addition to about $6.7 billion remaining at the end of September from its prior authorization announced in April 2012.

IBM will now have about $11.7 billion for its stock repurchase program. The company also said it expects to request additional share repurchase authorization at the April 2013 board meeting.

IBM said it will repurchase shares on the open market or in private transactions from time to time, depending on market conditions.

IBM, which has boosted its quarterly dividend by more than 400 percent since 2003, also declared a regular quarterly cash dividend of $0.85 per share, payable on December 10 to stockholders of record November 9, 2012.

The dividend payment in December will see IBM paying consecutive quarterly dividends every year since 1916.

IBM, which celebrated its 100th anniversary in May 2011, announced earlier in mid-October a profit for the third-quarter that marginally declined from last year as demand for its hardware and services waned in key regions, leading to a 5.4 percent drop in revenues, adding fears that economic weaknesses will continue to put pressure on tech companies.

IBM also proceeded with its succession plan, with CEO Virginia Rometty taking over as chairman recently in place of Samuel Palmisano, whose long run at the company catapulted it into an information technology powerhouse.

IBM's net income reached $3.82 billion or $3.33 per share, and quarterly revenues declined to $24.75 billion from last year's $26.12.

IBM closed Friday's regular trading session at $193.27, up $1.67 or 0.87% on a volume of 4.01 million shares.

Register
To receive FREE breaking news email alerts for International Business Machines Corp. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
After initially showing a lack of direction, stocks have moved mostly higher over the course of the trading day on Friday. With the gains on the day, the markets are extending the upward trend seen over the past several sessions. In another troubling sign for Democrats, the results of a Gallup poll released on Friday show that Tea Party Republicans are much more motivated to vote in the upcoming midterm elections than other Americans. The poll found that 73 percent of Tea Party Republicans are "extremely" or "very" motivated to vote in this year's elections. While the Commerce Department released a report on Friday showing a modest increase in new home sales in the U.S. in the month of September, the uptick came from a significantly downwardly revised level in August.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.