International Flavors & Fragrances Inc. (NYSE: IFF), a leading global creator of flavors and fragrances for consumer products, announced that its Board of Directors has declared a regular quarterly cash dividend of $0.34 per share of the Company’s common stock, payable on December 28, 2012 to shareholders of record as of December 21, 2012. This dividend is intended to be in lieu of the regular quarterly cash dividend which traditionally has been declared in December and paid in January. The earlier dividend payment is due to a potential increase in the dividend tax rate in 2013.
The Company also announced that its Board of Directors has authorized a $250 million share repurchase program, which is expected to commence in the first quarter of 2013 and to be completed by the end of 2014. At the current market price, the new program would enable the repurchase of approximately 4 million shares, or approximately 5% of the shares currently outstanding. The purchases will be made from time to time on the open market or through private transactions as market and business conditions warrant. Repurchased shares will be placed into treasury stock.
Doug Tough, IFF’s Chairman and CEO, said, “We believe purchasing our own shares at this time is a prudent use of our cash. Given the strength of our balance sheet and our overall financial flexibility, we believe we are well positioned to invest in the future growth of our business, while at the same time returning cash to shareholders through dividend payments and share repurchases. Over the past 10 years, IFF has returned nearly $1.9 billion to shareholders through dividend payments and share repurchases. This share repurchase program demonstrates our continued confidence in IFF’s long-term growth prospects and our commitment to building shareholder value.”
About International Flavors & Fragrances Inc.International Flavors & Fragrances Inc. (NYSE: IFF) is a leading global creator of flavors and fragrances used in a wide variety of consumer products. Consumers experience these unique scents and tastes in fine fragrances and beauty care, detergents and household goods, as well as beverages, sweet goods and food products. The Company leverages its competitive advantages of consumer insight, research and development, creative expertise, and customer intimacy to provide customers with innovative and differentiated product offerings. A member of the S&P 500 Index, IFF has more than 5,600 employees working in 32 countries worldwide. For more information, please visit our website at www.iff.com. Cautionary Statement Under The Private Securities Litigation Reform Act of 1995 This press release includes “forward-looking statements” under the Federal Private Securities Litigation Reform Act of 1995, including statements regarding (i) the Company’s belief that its balance sheet and overall financial flexibility will enable it to invest in the business while contemporaneously returning cash to shareholders through dividends and share repurchases and (ii) the amount and timing of share repurchases. These forward-looking statements are qualified in their entirety by cautionary statements and risk factor disclosures contained in the Company’s Securities and Exchange Commission filings, including the Company’s Annual Report on Form 10-K filed with the Commission on February 28, 2012. The Company wishes to caution readers that certain important factors may have affected and could in the future affect the Company’s expectations could cause the Company’s actual results for subsequent periods to differ materially from those expressed in any forward-looking statements made by or on behalf of the Company. These factors include, but are not limited to: (1) the economic climate for the Company’s industry and demand for the Company’s products; (2) fluctuations in the price, quality and availability of raw materials; (3) changes in consumer preferences; (4) the Company’s ability to implement its business strategy, including the achievement of anticipated cost savings, profitability, realization of price increases and growth targets; (5) the Company’s ability to successfully develop new and competitive products and enter and expand its sales in new and other emerging markets; (6) the impact of currency fluctuations or devaluations in the Company’s principal foreign markets; (7) uncertainties regarding the outcome of, or funding requirements, related to litigation or settlement of pending litigation, uncertain tax positions or other contingencies; (8) the effect of legal and regulatory proceedings, as well as restrictions imposed on the Company, its operations or its representatives by U.S. and foreign governments; and (9) adverse changes in federal, state, local and foreign tax legislation or adverse results of tax audits, assessments, or disputes. With respect to repurchases under the Company's share repurchase program, the amount of shares repurchased, if any, and the timing of such repurchases will depend on, among other things, the trading price of the Company's common stock, which may be positively or negatively impacted by the repurchase program, market and business conditions, the availability of stock, the Company's financial performance or the Company’s determination following the date of this announcement to use the Company's funds for other purposes. New risks emerge from time to time and it is not possible for management to predict all such risk factors or to assess the impact of such risks on the Company’s business. Accordingly, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.