Deere and Company’s board of directors has announced plans to create a share repurchase program for up to 20 million additional shares of common stock. The company says the program will take effect after the existing 26-million share plan, which was announced in late 2005, is completed. At least 4.6 million shares remained as of this April. Repurchases will be made in the open market.
“This action reflects confidence in the company’s future direction and in its ability to generate sustainable cash flow to fund growth opportunities while returning cash to our shareholder’s,” says Robert Lane, chairman and chief executive officer of Deere.
In addition to the repurchase program, the company’s board of directors posted a quarterly dividend of 44 cents per share, payable August 1 to stockholders on record as of June 30.