The board of directors of Terex Corp. last week approved the initiation of quarterly cash dividends to its shareholders. The initial quarterly cash dividend of $0.05 per share will be made on Dec. 20, to shareholders of record as of Dec. 16. Additionally, the Terex board of directors authorized a share repurchase program, allowing the company to repurchase Terex common stock in total value up to $200 million through Dec. 31, 2015.
"We are pleased to be in a position where we can begin to return a portion of our free cash flow to our shareholders on a regular basis,” said Ron DeFeo, Terex chairman and CEO. “Our shareholders have seen Terex mature into a diversified operating company, and we feel that this dividend initiation and share repurchase authorization reflects this transformation. Over the past 18 months, our priorities have been to generate cash flow for debt repayment, which has enabled us to strengthen our balance sheet. Going forward, the recurring dividend and share repurchase program demonstrates our confidence in our earnings growth opportunities over the coming years, ability to maintain strong free cash flow and equity value opportunities, as we feel our equity value does not reflect our company’s performance potential."
The company’s intends to pay four quarterly dividends of $0.05 per share, for an aggregate of $0.20 per share, for the calendar year 2014. However, future declarations of quarterly dividends and the establishment of future record and payment dates are subject to the determination of the Terex board of directors.
Westport, Conn.-based Terex Corp. is a diversified global manufacturer reporting in five business segments: Aerial Work Platforms, Construction, Cranes, Material Handling & Port Solutions and Materials Processing.