Builds upon its disciplined share repurchase and dividend programs,
while transforming the company to support customers at every stage of
the product lifecycle
PHOENIX--(BUSINESS WIRE)--Avnet (NYSE:AVT)
announced today that its Board of Directors approved an expansion of the
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company’s current share repurchase authorization by $500 million. Avnet
now has $675 million available for share repurchases when combined with
prior authorizations, and the latest authorization has no expiration
date.
In addition, Avnet’s Board of Directors approved a 5.9% increase in the
quarterly cash dividend to $0.18 per share. The dividend will be paid on
March 28, 2017, to shareholders of record as of the close of business on
March 14, 2017.
“The expansion of our share repurchase program and dividend increase
highlight Avnet’s commitment to creating value for investors. Taken
together, these programs have returned approximately $1.4 billion to
shareholders over the past six years,” said William Amelio, Avnet’s
Chief Executive Officer.
Amelio continued, “With the sale of the Technology Solutions business
this week, Avnet is now solely focused on supporting our electronic
components and integrated and embedded solutions customers at every
stage of the product lifecycle. The approximately $2 billion of
after-tax proceeds from the sale will allow us to strengthen our balance
sheet and return a meaningful amount of cash to our shareholders, while
maintaining ample liquidity to fund future growth. We will use
approximately $1.5 billion of the proceeds to pay down debt, and we are
confident that as a result our credit statistics will solidly support
our investment grade credit rating.”
Avnet has approved a cumulative total of $1.75 billion toward share
repurchases since its share repurchase program was authorized in August
2011. During this time, the company has purchased approximately $1.08
billion worth of its shares.
Avnet plans to repurchase stock from time to time at the discretion of
management in open market or privately negotiated transactions or
otherwise, subject to applicable laws, regulations and approvals,
strategic considerations, market conditions and other factors. The
company may terminate or limit the stock repurchase program at any time
without prior notice.
Forward-Looking Statements
This press release contains certain “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
These statements are based on management’s current expectations and are
subject to uncertainty and changes in facts and circumstances. The
forward-looking statements herein include statements addressing future
financial and operating results of Avnet and may include words such as
“will,” “anticipate,” “expect,” believe,” and “should,” and other words
and terms of similar meaning in connection with any discussions of
future operating or financial performance, business prospects or market
conditions. Actual results may vary materially from the expectations
contained in the forward-looking statements.
The following factors, among others, could cause actual results to
differ materially from those described in the forward-looking
statements: the Company’s ability to retain and grow market share and to
generate additional cash flow, risks associated with any acquisition
activities and the successful integration of acquired companies,
declines in sales, changes in business conditions and the economy in
general, changes in market demand and pricing pressures, any material
changes in the allocation of product or product rebates by suppliers,
allocations of products by suppliers, other competitive and/or
regulatory factors affecting the businesses of Avnet generally.
More detailed information about these and other factors is set forth in
Avnet’s filings with the Securities and Exchange Commission, including
the Company’s reports on Form 10-K, Form 10-Q and Form 8-K. Except as
required by law, Avnet is under no obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise.
About Avnet
From idea to design and from prototype to production, Avnet supports
customers at each stage of a product’s lifecycle. A comprehensive
portfolio of design and supply chain services makes Avnet the go-to
guide for innovators who set the pace for technological change. For
nearly a century, Avnet has helped its customers and suppliers around
the world realize the transformative possibilities of technology. Learn
more about Avnet at www.avnet.com.
(AVT_IR)
Contacts
Avnet
Investor Relations
Vincent Keenan, 480-643-7053