Seagate Technology Raises Targeted Annual Dividend 26% to $2.16
October 22 2014 - 4:44PM
Business Wire
Seagate Technology plc (NASDAQ:STX) today announced that its
Board of Directors has approved a 26 percent increase in the
Company’s targeted regular cash dividend. The targeted annual
dividend will increase from $1.72 to $2.16 per share and will
continue to be paid quarterly. The first payment at the new
quarterly rate of $0.54 per share is scheduled to be paid on
November 25, 2014 to stockholders of record as of the close of
business on November 11, 2014. The declaration and payment of any
future quarterly dividends will continue to be at the discretion of
the Board of Directors and will be dependent upon Seagate’s
financial position, results of operations, available cash, cash
flow, capital requirements and other factors deemed relevant by the
Board.
“Today’s increase in our dividend targets reflects the continued
strength of our business and operations, and our confidence in
Seagate’s ability to continue to generate sustainable operating
cash flow and maintain a strong balance sheet,” said Steve Luczo,
Seagate chairman and chief executive officer. “This is consistent
with our capital allocation priorities we have previously
articulated, including returning cash to shareholders and investing
in enhancing our storage technology portfolio. In addition, Seagate
recently received approximately $800 million dollars in connection
with the arbitration award confirmed by the Minnesota Supreme
Court, and the Board of Directors decided that a portion of these
proceeds should be returned to our shareholders in the near-term,
enabling us to increase the dividend by a larger percentage than in
the past.”
About Seagate
Seagate is a worldwide leader in storage solutions. Learn more
at seagate.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, each as
amended, including, in particular, statements about our plans with
respect to future dividend payments. These statements identify
prospective information and include words such as “expects,”
“plans,” “anticipates,” “believes,” “estimates,” “predicts,”
“projects”, “targets” and similar expressions. These
forward-looking statements are based on information available to
the Company as of the date of this press release and are based on
management’s current views and assumptions. These forward-looking
statements are conditioned upon and also involve a number of known
and unknown risks, uncertainties, and other factors that could
cause actual results, performance or events to differ materially
from those anticipated by these forward-looking statements. Such
risks, uncertainties, and other factors may be beyond the Company’s
control and may pose a risk to the Company’s operating and
financial condition and ability to pay future dividends. Such risks
and uncertainties include, but are not limited to: the uncertainty
in global economic conditions, as consumers and businesses may
defer purchases in response to tighter credit and financial news;
the impact of the variable demand and adverse pricing environment
for disk drives, particularly in view of current business and
economic conditions; dependence on the Company’s ability to
successfully qualify, manufacture and sell its disk drive products
in increasing volumes on a cost-effective basis and with acceptable
quality, particularly the new disk drive products with lower cost
structures; the impact of competitive product announcements;
possible excess industry supply with respect to particular disk
drive products; fluctuations in interest rates, and the Company’s
ability to achieve projected cost savings in connection with
restructuring plans. Information concerning risks, uncertainties
and other factors that could cause results to differ materially
from the expectations described in this press release is contained
in the Company’s Annual Report on Form 10-K filed with the U.S.
Securities and Exchange Commission on August 8, 2014 the “Risk
Factors” section of which is incorporated into this press release
by reference, and other documents filed with or furnished to the
Securities and Exchange Commission. These forward-looking
statements should not be relied upon as representing the Company’s
views as of any subsequent date and the Company undertakes no
obligation to update forward-looking statements to reflect events
or circumstances after the date they were made.
Seagate Technology plcMedia Relations Contact:Clive Over,
408-658-1617clive.over@seagate.comorInvestor Relations
Contact:408-658-1222stx@seagate.com
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