Zoetis Announces Authorization of $1.5 Billion Share Repurchase Program
December 06 2016 - 4:15PM
Business Wire
Company Also Declares First Quarter 2017
Dividend; Board Approves 10.5% Payment Increase
Zoetis Inc. (NYSE: ZTS) today announced that its Board of
Directors has authorized a $1.5 billion multi-year share repurchase
program as part of its long-term capital allocation plans. The
shares are expected to be repurchased at the discretion of
management over a multi-year period, and the program can be
cancelled at any time. The company’s previous $500 million share
repurchase program, which was approved in November 2014, is
expected to be completed at the end of this year.
The Board of Directors also declared a first quarter 2017
dividend of $0.105 per share, an increase of 10.5% from the
quarterly dividend rate paid in 2016. The dividend is to be paid on
Wednesday, March 1, 2017, to holders of record of the company’s
common stock on Friday, January 20, 2017.
“Our consistent performance, the improvements to our cost
structure, as well as the strength of our business model, have
Zoetis well-positioned to generate cash for future growth and value
creation opportunities,” said Juan Ramón Alaix, Chief Executive
Officer at Zoetis. “Today’s new share repurchase program, along
with the dividend increase, is a demonstration of our ongoing
commitment to return excess capital to shareholders as part of our
value proposition.”
“Our financial strength and improved cash flow allow us to
balance disciplined investment in both internal and external growth
opportunities with the return of excess capital to our shareholders
through a flexible share repurchase program and a growing
dividend,” said Glenn David, Executive Vice President and Chief
Financial Officer.
About Zoetis
Zoetis is the leading animal health
company, dedicated to supporting its customers and their
businesses. Building on more than 60 years of experience in animal
health, Zoetis discovers, develops, manufactures and markets
veterinary vaccines and medicines, complemented by diagnostic
products and genetic tests and supported by a range of services.
Zoetis serves veterinarians, livestock producers and people who
raise and care for farm and companion animals with sales of its
products in more than 100 countries. In 2015, the company generated
annual revenue of $4.8 billion with approximately 9,000 employees.
For more information, visit www.zoetis.com.
DISCLOSURE NOTICES
Forward-Looking
Statements: This press release contains forward-looking
statements, which reflect the current views of Zoetis with respect
to business plans or prospects, future operating or financial
performance, future guidance, future operating models, future use
of cash and dividend payments, and other future events. These
statements are not guarantees of future performance or actions.
Forward-looking statements are subject to risks and uncertainties.
If one or more of these risks or uncertainties materialize, or if
management's underlying assumptions prove to be incorrect, actual
results may differ materially from those contemplated by a
forward-looking statement. Forward-looking statements speak only as
of the date on which they are made. Zoetis expressly disclaims any
obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or otherwise.
A further list and description of risks, uncertainties and other
matters can be found in our Annual Report on Form 10-K for the
fiscal year ended December 31, 2015, including in the sections
thereof captioned “Forward-Looking Information and Factors That May
Affect Future Results” and “Item 1A. Risk Factors,” in our
Quarterly Reports on Form 10-Q and in our Current Reports on Form
8-K. These filings and subsequent filings are available online at
www.sec.gov, www.zoetis.com, or on request from Zoetis.
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version on businesswire.com: http://www.businesswire.com/news/home/20161206006328/en/
Zoetis Inc.Media:Elinore White, 1-973-443-2835
(o)elinore.y.white@zoetis.comKristen Seely, 1-973-443-2777
(o)kristen.seely@zoetis.comInvestors:Steve Frank,
1-973-822-7141 (o)steve.frank@zoetis.com
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