Caterpillar Inc
08 June 2005
June 8, 2005
FOR IMMEDIATE RELEASE
Caterpillar Splits Stock; Increases Dividend Rate
Increase marks largest in company history
PEORIA, Ill. - In support of its long-term commitment to maximizing stockholder
value and return, Caterpillar Inc. (NYSE: CAT) today announced a two-for-one
stock split and increased the quarterly dividend rate 22 percent from 41 cents
to 50 cents per share pre-split. On a split-adjusted basis, the 4.5 cents per
share increase is the largest in the company's 80 year history.
The stock split shares will be distributed on July 13 to stockholders of record
at the close of business on June 22, 2005. The company's previously announced
share repurchase program goal to reduce outstanding shares to 320,000,000 will
be adjusted for the split to reflect an adjusted goal of 640,000,000 shares
outstanding by October 2008.
The new quarterly dividend rate of 25 cents per share of common stock is payable
August 19, 2005, to stockholders of record at the close of business July 22,
2005. The dividend increase is the third in the past two years and the twelfth
since 1993. Including today's announcements, on a split-adjusted basis,
Caterpillar has increased its cash dividend more than thirteen-fold since 1993.
'Caterpillar continues to deliver remarkable results, and today's
announcement reflects the Board of Directors' confidence that we haven't
yet reached our full potential,' said Chairman and Chief Executive Officer
Jim Owens. 'We're aggressively pursuing continuous improvement as we leverage
our leadership position, strong cash flow and growth strategies around the world
to enhance the value customers and stockholders realize from an investment in
Caterpillar.'
For 80 years, Caterpillar Inc. has been building the world's
infrastructure and, in partnership with its worldwide dealer network, is driving
positive and sustainable change on every continent. With 2004 sales and revenues
of $30.25 billion, Caterpillar is a technology leader and the world's
leading manufacturer of construction and mining equipment, diesel and natural
gas engines and industrial gas turbines. More information is available at
www.cat.com.
This information is provided by RNS
The company news service from the London Stock Exchange
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