Caterpillar Launches $1 Billion Accelerated Buyback Plan

Having completed one share repurchase agreement last month for $1 billion, heavy-equipment manufacturer Caterpillar  announced today that it's launching a second round of buybacks, purchasing the stock from Societe Generale, one of the largest European financial-services groups.

The international financier will immediately deliver approximately 11 million shares based on current market prices, with the final number of shares bought back based on Caterpillar's volume-weighted average stock price during the period the agreement remains in effect, which is expected to be completed by September.

Noting the repurchase of $2 billion worth of stock this year and having raised the company's dividend by 15% last month, Caterpillar Chairman and CEO Doug Oberhelman said, "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."


In February 2007, the board of directors authorized the repurchase of $7.5 billion of company stock, and in December 2011, it extended the authorization through December 2015. Through the end of the second quarter of 2013, $4.8 billion of the $7.5 billion authorization was spent.

The article Caterpillar Launches $1 Billion Accelerated Buyback Plan originally appeared on Fool.com.

Fool contributor Rich Duprey and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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