Eastman Board Declares Quarterly Cash Dividend, Approves $300 Million Share Repurchase and Selection of Stephen R. Demeritt as Lead Director
KINGSPORT, Tenn., May 2, 2013 - The Board of Directors of Eastman Chemical Company (NYSE:EMN) has declared a quarterly cash dividend of $0.30 per share on the company's common stock. The dividend is payable July 1, 2013, to stockholders of record as of June 14, 2013. The Board of Directors also approved the repurchase of up to an additional $300 million of Eastman common stock.
"Both of these actions taken by our Board of Directors are a demonstration of our continued commitment to return value to stockholders," said Curt Espeland, senior vice president and chief financial officer. "They are also a reflection of the company's strong financial position and confidence in Eastman's ability to deliver consistent, superior value."
The new stock repurchase authorization is in addition to the remaining amount under the $300 million of stock repurchases authorized by the Board in February 2011.
Share repurchases will be funded with available cash and implemented through purchases made from time to time in either the open market or private transactions. The timing, volume, and nature of share repurchases will be at the discretion of management, depending on market conditions, applicable securities laws, and other factors, and may be suspended or discontinued at any time. Eastman may also implement all or part of the repurchases under one or more Rule 10b5-1 trading plans, which would allow repurchases under pre-set terms at times when Eastman might otherwise be prevented from doing so under insider trading laws or because of self-imposed trading restrictions.
In addition, the Board of Directors named independent director Stephen R. Demeritt to serve as Lead Director. Demeritt has been an Eastman director since 2003. Demeritt served as Vice Chairman of the Board of Directors of General Mills, Inc. from 1999 until his retirement in 2005. He joined General Mills in 1969 and served in various senior marketing positions, including President, International Foods; and Chief Executive Officer, Cereal Partners Worldwide.
"I have every confidence that Steve will do an exemplary job in this new role and that we will continue to benefit from his expertise in corporate management and experience serving in leadership positions on corporate boards," said director Howard L. Lance, Chair of the Nominating and Corporate Governance Committee of the Eastman Board of Directors.
Demeritt succeeds director Gary E. Anderson as Lead Director, a position he held since January 2011.
"Eastman has benefited greatly from Gary's leadership over the past two years," said Lance. "He is a valued member of our Board, and we are grateful for his many contributions."
Eastman is a global specialty chemical company that produces a broad range of products found in items people use every day. With a portfolio of specialty businesses, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. Its market-driven approaches take advantage of world-class technology platforms and leading positions in attractive end-markets such as transportation, building and construction and consumables. Eastman focuses on creating consistent, superior value for all stakeholders. As a globally diverse company, Eastman serves customers in approximately 100 countries and had 2012 pro forma combined revenues, giving effect to the Solutia acquisition, of approximately $9.1 billion. The company is headquartered in Kingsport, Tennessee, USA and employs approximately 13,500 people around the world. For more information, visit www.eastman.com.
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Source: Eastman Chemical Company via Thomson Reuters ONE