The board of Milwaukee-based Rockwell Automation, Inc. has authorized a $1 billion repurchase of shares of the company’s common stock.
The decision is addition to a $1 billion purchase authorized in June 2014. The company still had approximately $197 million remaining on that authorization as of Thursday.
“In the prior six fiscal years, we have returned more than $3.7 billion, or 84 percent of free cash flow, to shareowners through dividends and share repurchases,” said Keith D. Nosbusch, Rockwell chairman and chief executive officer. “Our solid financial position and sustainable cash generation enable us to continue our strong track record of returning cash to shareowners while investing in the business and pursuing strategic acquisitions.”
The repurchase would amount to roughly 6.8 percent of the company’s outstanding shares in all classes.
The board also approved a quarterly dividend of 72.5 cents per share of common stock.
Profits and revenue were down when the company reported earnings for the first quarter of 2016 because of weakness in the oil and gas markets and a strong U.S. dollar. The company lowered its full fiscal year sales guidance after the down quarter.
Chief financial officer Ted Crandall said at the time the company had taken some steps to control costs but the added the lower expectations weren’t a sign of something bigger.
