S&P 500 2nd Quarter Buybacks Set Record at $116 Billion

12-Month Value Now Matches Capital Expenditures



24 Aug, 2006, 01:00 ET from Standard & Poor's

    NEW YORK, Aug. 24 /PRNewswire/ -- Standard & Poor's, the world's
 leading index provider, announced today that S&P 500 stock buyback activity
 continues to grow at a record pace, surging 43% from that of the second
 quarter of 2005 and 175% from that of the second quarter of 2004. In US
 dollar terms, stock buybacks in the S&P 500 reached $116 billion during the
 second quarter, setting a new quarterly record by eclipsing the $104
 billion set in the fourth quarter of 2005.
     "The record $116 billion in buybacks is the result of over 40% of the
 S&P 500 companies reducing their share count during the second quarter,"
 says Howard Silverblatt, Senior Index Analyst at Standard & Poor's. "The
 unprecedented expenditure on buybacks and the resulting share count
 reduction is having a material affect on both earnings-per-share and cash
 flow. Left unabated, this will eventually impact the supply of open market
 shares, and therefore the share price itself."
     According to Standard & Poor's, buyback activity within the index began
 to pickup during the fourth quarter of 2004 and has continued to grow in
 both the size of the buybacks and the number of participating companies.
 Over the past seven quarters, S&P 500 issues have spent over $630 billion
 on buybacks with half of the issues posting fewer shares now then they did
 seven quarters ago. In addition, companies are now spending as much on
 stock buybacks as they are on Capital Expenditures. "The impact of the
 share count reduction was a significant boost to earnings-per-share for
 over 20% of the issues in the S&P 500 during the second quarter," adds
 Silverblatt.
     Standard & Poor's data shows that on a sector basis, Information
 Technology, which lost 9.8% during the second quarter, spent the most on
 stock buybacks last quarter. The sector, which represents less than 15% of
 the total market value of the S&P 500, accounted for 25% of the S&P 500
 buybacks. Telecommunications issues, which lost 1.4% during the second
 quarter, registered the least amount of buybacks.
     "For the remainder of 2006, Standard & Poor's expects the strong
 buyback activity within the S&P 500 to continue," concludes Silverblatt.
 "The activity will be fueled in part by the positive impact it is having on
 earnings-per-share, and the desire of S&P 500 companies to satisfy the
 demands of investors to utilize built-up, record cash reserves."
     STANDARD & POOR'S INDEX SERVICES
 
     S&P 500                     DIVIDENDS    BUYBACKS    12-MONTH    12-MONTH
                                $ BILLIONS  $ BILLIONS   DIVIDEND &  DIVIDEND &
     QUARTER                                              BUYBACKS    BUYBACKS
     END                                                $ BILLIONS       YIELD
 
     06/30/2006 Preliminary          54.46      116.66      614.11       5.34%
     03/31/2006                      53.25      100.18      573.45       4.92%
     12/31/2005                      54.83      104.28      551.06       4.90%
     09/30/2005                      48.99       81.47      508.06       4.58%
     06/30/2005                      49.03       81.42      468.82       4.31%
     03/31/2005                      48.99       82.05      424.25       3.92%
     12/31/2004                      49.68       66.42      378.49       3.35%
     09/30/2004                      45.54       45.68      347.68       3.34%
     06/30/2004                      43.43       42.46      330.54       3.11%
     03/31/2004                      42.36       42.92      310.76       2.97%
     12/31/2003                      46.76       38.53      291.70       2.84%
     09/30/2003                      39.96       34.13      276.24       3.00%
     06/30/2003                      37.74       28.36      273.31       3.04%
     03/31/2003                      36.19       30.03      276.30       3.53%
     12/31/2002                      39.22       30.62      275.06       3.39%
     09/30/2002                      35.97       35.18      274.25       3.65%
     06/30/2002                      38.11       30.98      275.26       3.03%
     03/31/2002                      34.51       30.47      274.37       2.61%
     12/31/2001                      36.27       32.75      274.43       2.62%
     09/30/2001                      37.53       34.63      274.41       2.91%
     06/30/2001                      34.58       33.62      269.10       2.44%
 
     About Standard & Poor's Index Services
     Standard & Poor's Index Services, the world's leading index provider,
 maintains a wide variety of investable and benchmark indices to meet an
 array of investor needs. Its family of indices includes the S&P 500, an
 index with $1.26 trillion invested and $4.45 trillion benchmarked, and the
 S&P Global 1200, a composite index comprised of seven regional and country
 headline indices. For more information, please visit
 www.standardandpoors.com/indices.
     About Standard & Poor's
     Standard & Poor's, a division of The McGraw-Hill Companies (NYSE:   MHP),
 is the world's foremost provider of financial market intelligence,
 including independent credit ratings, indices, risk evaluation, investment
 research and data. With approximately 7,500 employees, including wholly
 owned affiliates, located in 21 countries, Standard & Poor's is an
 essential part of the world's financial infrastructure and has played a
 leading role for more than 140 years in providing investors with the
 independent benchmarks they need to feel more confident about their
 investment and financial decisions. For more information, visit
 http://www.standardandpoors.com.
 
 

SOURCE Standard & Poor's
    NEW YORK, Aug. 24 /PRNewswire/ -- Standard & Poor's, the world's
 leading index provider, announced today that S&P 500 stock buyback activity
 continues to grow at a record pace, surging 43% from that of the second
 quarter of 2005 and 175% from that of the second quarter of 2004. In US
 dollar terms, stock buybacks in the S&P 500 reached $116 billion during the
 second quarter, setting a new quarterly record by eclipsing the $104
 billion set in the fourth quarter of 2005.
     "The record $116 billion in buybacks is the result of over 40% of the
 S&P 500 companies reducing their share count during the second quarter,"
 says Howard Silverblatt, Senior Index Analyst at Standard & Poor's. "The
 unprecedented expenditure on buybacks and the resulting share count
 reduction is having a material affect on both earnings-per-share and cash
 flow. Left unabated, this will eventually impact the supply of open market
 shares, and therefore the share price itself."
     According to Standard & Poor's, buyback activity within the index began
 to pickup during the fourth quarter of 2004 and has continued to grow in
 both the size of the buybacks and the number of participating companies.
 Over the past seven quarters, S&P 500 issues have spent over $630 billion
 on buybacks with half of the issues posting fewer shares now then they did
 seven quarters ago. In addition, companies are now spending as much on
 stock buybacks as they are on Capital Expenditures. "The impact of the
 share count reduction was a significant boost to earnings-per-share for
 over 20% of the issues in the S&P 500 during the second quarter," adds
 Silverblatt.
     Standard & Poor's data shows that on a sector basis, Information
 Technology, which lost 9.8% during the second quarter, spent the most on
 stock buybacks last quarter. The sector, which represents less than 15% of
 the total market value of the S&P 500, accounted for 25% of the S&P 500
 buybacks. Telecommunications issues, which lost 1.4% during the second
 quarter, registered the least amount of buybacks.
     "For the remainder of 2006, Standard & Poor's expects the strong
 buyback activity within the S&P 500 to continue," concludes Silverblatt.
 "The activity will be fueled in part by the positive impact it is having on
 earnings-per-share, and the desire of S&P 500 companies to satisfy the
 demands of investors to utilize built-up, record cash reserves."
     STANDARD & POOR'S INDEX SERVICES
 
     S&P 500                     DIVIDENDS    BUYBACKS    12-MONTH    12-MONTH
                                $ BILLIONS  $ BILLIONS   DIVIDEND &  DIVIDEND &
     QUARTER                                              BUYBACKS    BUYBACKS
     END                                                $ BILLIONS       YIELD
 
     06/30/2006 Preliminary          54.46      116.66      614.11       5.34%
     03/31/2006                      53.25      100.18      573.45       4.92%
     12/31/2005                      54.83      104.28      551.06       4.90%
     09/30/2005                      48.99       81.47      508.06       4.58%
     06/30/2005                      49.03       81.42      468.82       4.31%
     03/31/2005                      48.99       82.05      424.25       3.92%
     12/31/2004                      49.68       66.42      378.49       3.35%
     09/30/2004                      45.54       45.68      347.68       3.34%
     06/30/2004                      43.43       42.46      330.54       3.11%
     03/31/2004                      42.36       42.92      310.76       2.97%
     12/31/2003                      46.76       38.53      291.70       2.84%
     09/30/2003                      39.96       34.13      276.24       3.00%
     06/30/2003                      37.74       28.36      273.31       3.04%
     03/31/2003                      36.19       30.03      276.30       3.53%
     12/31/2002                      39.22       30.62      275.06       3.39%
     09/30/2002                      35.97       35.18      274.25       3.65%
     06/30/2002                      38.11       30.98      275.26       3.03%
     03/31/2002                      34.51       30.47      274.37       2.61%
     12/31/2001                      36.27       32.75      274.43       2.62%
     09/30/2001                      37.53       34.63      274.41       2.91%
     06/30/2001                      34.58       33.62      269.10       2.44%
 
     About Standard & Poor's Index Services
     Standard & Poor's Index Services, the world's leading index provider,
 maintains a wide variety of investable and benchmark indices to meet an
 array of investor needs. Its family of indices includes the S&P 500, an
 index with $1.26 trillion invested and $4.45 trillion benchmarked, and the
 S&P Global 1200, a composite index comprised of seven regional and country
 headline indices. For more information, please visit
 www.standardandpoors.com/indices.
     About Standard & Poor's
     Standard & Poor's, a division of The McGraw-Hill Companies (NYSE:   MHP),
 is the world's foremost provider of financial market intelligence,
 including independent credit ratings, indices, risk evaluation, investment
 research and data. With approximately 7,500 employees, including wholly
 owned affiliates, located in 21 countries, Standard & Poor's is an
 essential part of the world's financial infrastructure and has played a
 leading role for more than 140 years in providing investors with the
 independent benchmarks they need to feel more confident about their
 investment and financial decisions. For more information, visit
 http://www.standardandpoors.com.
 
 SOURCE Standard & Poor's

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