Northrop Grumman Announces Additional $4 Billion Share Repurchase Authorization - Plans to Retire 25 Percent of Outstanding Shares
FALLS CHURCH, Va., May 16, 2013 /PRNewswire-FirstCall/ -- Northrop Grumman Corporation (NYSE: NOC) announced today that its board of directors has authorized an additional $4 billion for the repurchase of the company's common stock. With today's authorization, the company's outstanding share repurchase authorizations total approximately $5 billion. Northrop Grumman currently plans to repurchase shares with the goal of retiring approximately 25 percent of its shares outstanding by the end of 2015, market conditions permitting. Share purchases will take place from time to time, subject to market conditions and management's discretion, in the open market or in privately negotiated transactions. As of March 31, 2013, Northrop Grumman had approximately 235 million shares outstanding.
The company will use available cash balances and free cash flow to fund the repurchases. In addition, the company may issue debt under its current shelf registration in order to support accelerated share repurchases.
"Today's action and yesterday's dividend increase reflect confidence in our performance and our belief that our share repurchase program continues to create value for our shareholders," said Wes Bush, chairman, chief executive officer and president.
Northrop Grumman and its board of directors will continue to evaluate all the elements of its cash deployment strategy on a regular basis.
Northrop Grumman is a leading global security company providing innovative systems, products and solutions in unmanned systems, cyber, C4ISR, and logistics and modernization to government and commercial customers worldwide. Please visit www.northropgrumman.com for more information.
Note: Statements in this press release, other than statements of historical fact, constitute "forward-looking" information within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "expect," "intend," "plan," "believe," "estimate," "guidance," "goal," and similar expressions generally identify these forward-looking statements. These forward-looking statements speak only as of the date when made, and the Company undertakes no obligation to update or revise any forward-looking statements after the date of the subject presentation. Forward-looking statements are not guarantees of future performance and inherently involve a wide range of risks and uncertainties that are difficult to predict. Actual results may differ materially from those described or implied in these statements based on a number of factors, including global economic conditions, economic conditions in our industry, government fiscal and budget policies, changes in interest rates and other market conditions. A discussion of these risks and uncertainties is contained in the Company's filings with the Securities and Exchange Commission.
SOURCE Northrop Grumman Corporation