April 25, 2013
Global Government & Corporate Affairs
FOR IMMEDIATE RELEASE
PEORIA, Ill. — Caterpillar Inc. (NYSE: CAT) today announced it has entered into a definitive agreement with Citibank, N.A. to purchase shares of its common stock under an accelerated stock repurchase program.
“The strength of our balance sheet coupled with our very strong cash flow performance makes this an opportune time to take this important action to reward stockholders through not only dividends, but also by the resumption of our stock repurchase program,” said Caterpillar Chairman and CEO Doug Oberhelman. “This $1 billion accelerated stock repurchase program also underscores our confidence in Caterpillar’s long-term prospects for growth and affirms our commitment to deliver superior returns to stockholders through the cycles,” said Oberhelman.
Pursuant to the accelerated stock repurchase agreement, Caterpillar has agreed to repurchase $1 billion of its common stock from Citi, 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 June 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 2008, $3.8 billion of the $7.5 billion authorization was spent and no shares of stock have been repurchased since then.
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.