MEMPHIS, Tenn., Sept. 10, 2013 /PRNewswire/ -- International Paper (NYSE: IP) today announced its board of directors has authorized a share repurchase program to acquire up to $1.5 billion of the company's common stock. The company intends to repurchase such shares over the next 2-3 years in open market repurchase transactions. Also today, the company announced its board of directors is raising the company's quarterly dividend by 17%.
"The authorization of this repurchase program and the dividend increase reflect our continued confidence in International Paper's long-term profitability and sustainable free cash flow generation," said John Faraci, Chairman and Chief Executive Officer. "International Paper continues to be committed to a balanced use of cash in a way that maximizes value to our shareowners."
The dividend is being increased 17% from $0.30 to $0.35 per share for the period from October 1, 2013, to December 31, 2013, inclusive, on the company's common stock, par value $1.00. This dividend is payable on December 16, 2013, to holders of record at the close of business on November 15, 2013. The company's board of directors also declared a regular quarterly dividend of $1.00 per share for the period from October 1, 2013, to December 31, 2013, inclusive, on the cumulative $4.00 preferred stock of the company. This dividend is also payable on December 16, 2013, to holders of record at the close of business on November 15, 2013.
About International Paper
International Paper (NYSE: IP) is a global leader in packaging and paper with manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. Its businesses include industrial and consumer packaging and uncoated papers, complemented by xpedx, the company's North American distribution company. Headquartered in Memphis, Tenn., the company employs approximately 70,000 people and is strategically located in more than 24 countries serving customers worldwide. International Paper net sales for 2012 were $28 billion. For more information about International Paper, its products and stewardship efforts, visit internationalpaper.com.
Repurchases of the company's common stock may be made from time to time in open market transactions (including block trades), privately negotiated transactions or otherwise. The timing, manner, price and amount of repurchases will be determined by the company in its discretion based on factors including the market price of the company's common stock, general economic and market conditions and applicable legal requirements. The repurchase program may be commenced, suspended or discontinued at any time.
Certain statements in this press release may be considered forward-looking statements. These statements reflect management's current views and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these statements. Factors which could cause actual results to differ include but are not limited to: (i) the level of our indebtedness and increases in interest rates; (ii) industry conditions, including but not limited to changes in the cost or availability of raw materials, energy and transportation costs, competition we face, cyclicality and changes in consumer preferences, demand and pricing for our products; (iii) global economic conditions and political changes, including but not limited to the impairment of financial institutions, changes in currency exchange rates, credit ratings issued by recognized credit rating organizations, the amount of our future pension funding obligation, changes in tax laws and pension and health care costs; (iv) unanticipated expenditures related to the cost of compliance with existing and new environmental and other governmental regulations and to actual or potential litigation; (v) whether we experience a material disruption at one of our manufacturing facilities; (vi) risks inherent in conducting business through a joint venture; (vii) our ability to reach a definitive agreement on a mutually acceptable transaction combining xpedx with Unisource, the receipt of governmental and other approvals and favorable rulings associated with such a transaction and the successful fulfillment or waiver of all other closing conditions for such a transaction without unexpected delays or conditions, and the successful closing of such a transaction within the estimated timeframe; and (viii) our ability to achieve the benefits we expect from all strategic acquisitions, divestitures and restructurings. These and other factors that could cause or contribute to actual results differing materially from such forward-looking statements are discussed in greater detail in the company's Securities and Exchange Commission filings. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE International Paper