July 28, 2015
FOR IMMEDIATE RELEASE
Caterpillar Announces $1.5 Billion Accelerated Stock Repurchase
PEORIA, Ill. — Caterpillar Inc. (NYSE: CAT) today announced it entered into a definitive agreement with Citibank N.A. to purchase a total of $1.5 billion of its common stock under an accelerated stock repurchase transaction.
“The continued strength of our balance sheet and strong cash flow allow us to return capital to stockholders despite weakness in the cyclical industries we serve,” said Caterpillar Chairman and CEO Doug Oberhelman. “Repurchasing an additional $1.5 billion of Caterpillar stock in the third quarter of 2015 will bring our total 2015 stock repurchases to approximately $2 billion. In addition to the stock repurchase, our Board of Directors recently raised the quarterly dividend by 10 percent, further demonstrating our commitment to stockholders.”
Pursuant to the terms of the accelerated stock repurchase agreement, Caterpillar agreed to repurchase a total of $1.5 billion of its common stock from Citibank N.A., with an immediate delivery of approximately 18 million shares based on current market prices. The final number of shares to be repurchased and the aggregate cost per share 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 2015. In January 2014, the Board of Directors authorized the repurchase of $10 billion of Caterpillar stock, which will expire on December 31, 2018. Through the end of the second quarter of 2015, approximately $3 billion of the $10 billion authorization was spent.
For 90 years, Caterpillar Inc. has been making sustainable progress possible and driving positive change on every continent. Customers turn to Caterpillar to help them develop infrastructure, energy and natural resource assets. With 2014 sales and revenues of $55.184 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 principally operates through its three product segments - Construction Industries, Resource Industries and Energy & Transportation - and also provides financing and related services through its Financial Products segment. For more information, visit caterpillar.com. To connect with us on social media, visit caterpillar.com/social-media.