CORNING - Corning Inc.’s board of directors have authorized a $4 billion repurchase program, the company announced Wednesday.
The program comes as the company expresses confidence in its ability to deliver value to shareholders and its ability to invest.
“We are tracking to deliver on our four-year commitment to return cash and increase shareholder value,” senior vice president and chief financial officer R. Tony Tripeny said in a statement. “By year end we will have returned approximately $6 billion to shareholders through repurchases and dividends. Today’s approval of an additional $4 billion share repurchase authorization further demonstrates the board’s confidence in our Framework, and represents another important milestone toward meeting our goals.”
The framework Tripeny is referring to is the company’s Strategy and Capital Allocation Framework, introduced in 2015.
The framework is designed to “create significant value for shareholders by leveraging the company’s financial strength and focusing the company’s portfolio,” according to a company statement.
Corning Inc. said that under the framework, the company is committing itself to deliver more than $12.5 billion to shareholders while investing $10 billion “to sustain the company’s leadership positions and grow.”
“We have made progress on advancing a number of new growth opportunities within our focused portfolio,” Tripeny said. “For example, in the mobile consumer-electronics market, we are sustaining our market leadership with Corning Gorilla Glass 5, which provides enhanced damage resistance, and we recently introduced Gorilla Glass SR+ for wearable devices.”
The rate of activity and amount of repurchased shares will depend on factors such as general business and market conditions, the company said. The program may also be affected by “open market purchases or privately negotiated transactions in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended, including through Rule 10b5-1 trading plans.”
The program does not have a fixed expiration date, the company said.
The repurchase program is effective as of Wednesday.