SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 7, 1995
CATERPILLAR INC.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
1-768
(Commission File Number)
37-0602744
(IRS Employer I.D. No.)
100 NE Adams Street, Peoria, Illinois
(Address of principal executive offices)
61629
(Zip Code)
Registrant's telephone number, including area code:
(309) 675-1000
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Item 5. Other Events
Caterpillar Inc. announced today that its board of directors increased the
quarterly dividend 40 percent to 35 cents per share from 25 cents per share,
payable August 19 to stockholders of record July 20. In addition, directors
authorized the repurchase of up to 10 percent of the outstanding common
stock over the next three to five years.
The dividend action marked the third increase in the past 12 months. During
that time, the quarterly payout has risen nearly five-fold, to 35 cents from
7.5 cents, adjusted for a two-for-one stock split in August 1994.
"Caterpillar directors sent a strong signal today that they believe the
company is positioned for continued success and Caterpillar's stock is an
excellent long-term investment," said Donald V. Fites, chairman and CEO.
"Our stockholders are benefiting from the company's strong performance and
solid position as the market leader in a growing global economy," Fites said.
"Today's actions reflect the board's confidence that we have the people,
products and plans to meet growing demand from customers around the world and
consistently build shareowner value well into the next century."
"The strategic initiatives we've pursued in the past several years to
modernize our plants, reduce costs, improve quality, invest in new products
and expand into new markets have positioned us exceptionally well for the
long term," Fites said. "We have the plans in place to allow this company to
compete and remain profitable throughout the volume swings of traditional
business cycles."
Caterpillar has achieved five consecutive quarters of record profit. First
quarter 1995 results were the highest for any three-month reporting period
in the company's history.
Under the stock repurchase plan, over the next three to five years the company
will buy back up to 20 million shares, or approximately 10 percent of its 200
million shares outstanding.
"Our strong balance sheet and cash flow allow us to build shareowner value
through stock repurchases while continuing to make the significant investments
necessary to maintain a steady flow of new technology and new products and
services for our customers," Fites said.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CATERPILLAR INC.
By: R. Rennie Atterbury III
Vice President
Date: June 7, 1995
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