The board of Harris Corp., the parent company of Rochester-based RF Communications, approved a $1 billion share repurchase authorization, the Florida firm said Monday.
The new program is in addition to the existing program, which has an unused authorization of roughly $62 million. The company expects to repurchase up to $200 million in shares in fiscal 2014.
Share repurchases will be funded with available cash and commercial paper, the company said. Repurchases under the program may be made through open market purchases, private transactions or transactions structured through investment banking institutions.
Harris also increased the quarterly cash dividend rate by 13.5 percent from 37 cents a share to 42 cents a share and declared a dividend of 42 cents a share payable Sept. 24 to shareholders of record Sept. 10. The annualized cash dividend rate is now $1.68 a share. This action represents the company’s 12th consecutive annual dividend increase.
"Harris continues to generate strong free cash flow,” said William Brown, president and CEO, in a statement. “These actions demonstrate our continued confidence in the company’s long-term outlook and our commitment to create shareholder value through effective cash deployment.”
RF Communications employs some 2,100 local workers.
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