Flowserve (FLS) Outlines New Capital Structure Strategy; Approve $1B Buyback

Article Stock Quotes (1) Comments (0)

Flowserve Corporation (NYSE: FLS), announced that its board of directors today has endorsed an updated capital structure strategy designed to make the company’s financial structure more efficient. This capital structure strategy will include returning additional capital more quickly to shareholders through a new $1 billion stock repurchase program approved by the board. Highlights of the strategy include:

• Long-term target gross leverage ratio of 1.0x-2.0x total debt to EBITDA through the business cycle, versus current gross leverage ratio of 0.7x; and
  
  
• An expanded stock repurchase program of $1 billion, including approximately $233 million remaining under the company’s most recent share repurchase authorization.

Execution of this share repurchase program is planned to begin immediately. The amount and timing of the planned repurchases will be determined by the company based on its evaluation of the company’s financial condition, business opportunities and market conditions at the time. The repurchases may be effected through various methods, including open market repurchases (including those effected through Rule 10b5-1 plans to allow longer periods of repurchase opportunity).

The company said the new share repurchase program includes amounts incremental to its previously announced policy of annually returning 40% to 50% of running two-year average net earnings to shareholders, which the company intends to maintain after attaining the announced target leverage ratio.

---

Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW

---

*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here

---

---

You May Also Be Interested In

• Macy's (M) Posts Q1 EPS of 55c; Comps Up 3.8%; Boosts Dividend 25%, Raises Buyback
• UPDATE: Applied Materials, Inc. (AMAT) Tops Q2 EPS by 3c, Offers Guidance
• UPDATE: Senate Takes Aim at Apple (AAPL); Says Irish Unit Earned $22B, Paid $10M in Taxes

Create E-mail Alert Related Categories

Corporate News, Stock Buybacks

Related Entities

Stock Buyback, Earnings

Add Your Comment

Name

Subject

Body

Share on Facebook

Verification
can't see the text?
click here to refresh the image.
what's this?