PEORIA, Ill., July 29, 2013 /PRNewswire/ -- Caterpillar Inc. (NYSE: CAT) today announced it has entered into a definitive agreement with Societe Generale to purchase $1 billion of its common stock under an accelerated stock repurchase transaction. In April of 2013, the company announced a similar $1 billion transaction, which was completed in June of 2013.
"The continued strength of our balance sheet and strong cash flow puts us in a good position to reaffirm our commitment to stockholders, even in the midst of a downturn," said Caterpillar Chairman and CEO Doug Oberhelman. "Repurchasing an additional $1 billion of Caterpillar stock in the third quarter of 2013 will bring our total 2013 stock repurchases to $2 billion. This, combined with the 15-percent increase in our quarterly dividend announced in June, clearly shows how we are taking advantage of our strong cash position to deliver on our commitments to our stockholders."
Pursuant to the accelerated stock repurchase agreement, Caterpillar has agreed to repurchase $1 billion of its common stock from Societe Generale, with an immediate delivery of approximately 11 million shares based on current market prices. The final number of shares to be repurchased and the aggregate cost to Caterpillar will be based on Caterpillar's volume-weighted average stock price during the term of the transaction, which is expected to be completed in September of 2013. In February 2007, the Board of Directors authorized the repurchase of $7.5 billion of Caterpillar stock, and in December 2011, the authorization was extended through December 2015. Through the end of the second quarter of 2013, $4.8 billion of the $7.5 billion authorization was spent.About Caterpillar:For more than 85 years, Caterpillar Inc. has been making sustainable progress possible and driving positive change on every continent. With 2012 sales and revenues of $65.875 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services and Progress Rail Services. More information is available at: http://www.caterpillar.com .