Mead Johnson Increases Dividend; Announces $300 Million Share Repurchase Authorization
GLENVIEW, Ill., Mar 17, 2010 (BUSINESS WIRE) -- Mead Johnson Nutrition Company (NYSE: MJN) announced today that its board of directors had approved a 12.5 percent increase in its common stock dividend. The board declared a regular quarterly dividend of $0.225 per share for the quarter ending March 31, 2010, up from $0.20 per share. The dividend will be paid on April 1, 2010, to shareholders of record on March 24, 2010.
The board also authorized the repurchase of up to $300 million of the company's common stock. The purchases will be made from time-to-time in the open market or in privately negotiated transactions. The company said the repurchase program is primarily intended to offset the dilutive impact on earnings from equity-based compensation over the next three to five years.
Commenting on the board's actions, Mead Johnson Chief Executive Officer Stephen W. Golsby said, "These decisions by our board are based on the company's solid financial performance over the past year, as well as confidence in our future growth prospects and ability to generate strong cash flow. While our number one objective is to use our cash flow to drive profitable growth, we believe returning cash to shareholders in the form of dividends and stock repurchases also reflects our commitment to enhancing shareholder value."
Certain statements in this news release are forward looking as defined in the Private Securities Litigation Reform Act of 1995. These statements, which are identified by words such as "expects," "intends" and "believes," involve certain risks and uncertainties that may cause actual results to differ materially from expectations as of the date of this news release. These risks include, but are not limited to: (1) the ability to sustain brand strength, particularly the Enfa family of brands; (2) the effect on the company's reputation of real or perceived quality issues; (3) the adverse effect of commodity price increases; (4) increased competition from branded, private label, store and economy-branded products; (5) the effect of an economic downturn on consumers' purchasing behavior and customers' ability to pay for product; (6) inventory reductions by customers; (7) the adverse effect of changes in foreign currency exchange rates; (8) legislative, regulatory or judicial action that may adversely affect the company's ability to advertise its products or maintain product margins; (9) the possibility of changes in the Women, Infant and Children (WIC) program, or increases in levels of participation in WIC; and (10) the ability to develop and market new, innovative products. For additional information on these and other factors, see the risk factors identified in the company's periodic reports, including the annual report on Form 10-K for 2009, and current reports on Form 8-K, filed with, or furnished to, the Securities and Exchange Commission, available upon request or at meadjohnson.com. The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
About Mead Johnson
Mead Johnson, a global leader in pediatric nutrition, develops, manufactures, markets and distributes more than 70 products in 50 markets worldwide. The company's mission is to create nutritional brands and products trusted to give infants and children the best start in life. The Mead Johnson name has been associated with science-based pediatric nutrition products for over 100 years. The company's "Enfa" family of brands, including Enfamil(R) infant formula, is the world's leading brand franchise in pediatric nutrition. For more information, go to meadjohnson.com.
SOURCE: Mead Johnson Nutrition CompanyMead Johnson Nutrition Company