The board of directors of Praxair, Inc. (NYSE: PX) has authorized the repurchase of up to $1 billion of its common stock, reflecting the company’s strong balance sheet and growing free-cash-flow generation from operations.
“This share repurchase program reflects the confidence we have in the long-term growth prospects for our business, and our commitment to increasing shareholder value,” said Steve Angel, chairman and chief executive officer. “Our first priority will continue to be investing in profitable growth projects; however, due to our high return on capital, we expect to generate increasing levels of cash flow.”
The share repurchases are expected to be completed over the next two years. Share purchases may take place from time to time on the open market or through negotiated transactions, subject to market and business conditions. The purchases will be financed by available cash and debt.
This program replaces the repurchase program in effect since 1997 which has been used primarily to offset the dilutive effect of shares issued under employee stock benefit plans and the dividend reinvestment and stock purchase plan.
The board of directors also has declared a quarterly dividend of 30 cents per share, unchanged from the previous quarter. The dividend is payable on September 17, 2007 to shareholders of record on September 7, 2007.
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