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IBM board approves $15 billion share buyback

NEW YORK (Reuters) - IBM <IBM.N> said on Tuesday its board has authorized a $15 billion share buyback program that could boost 2008 earnings by 5 cents a share, sending its stock up 3 percent.
Posted : Tue, 26 Feb 2008 16:37:05 GMT
By : Reuters
Category : US (Business)
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NEW YORK (Reuters) - IBM said on Tuesday its board has authorized a $15 billion share buyback program that could boost 2008 earnings by 5 cents a share, sending its stock up 3 percent.

The news also pushed the overall U.S. stock market higher. International Business Machines Corp, which has a market capitalization of roughly $150 billion, was by far the top driver of the Dow industrials.

IBM said it now expects full-year earnings per share of at least $8.25, or 16 percent year-on-year growth. In January, the company had seen 2008 earnings per share at $8.20 to $8.30.

"IBM's profitable growth and consistently strong cash flow enable the company to continue to return value to our shareholders," Chief Executive Samuel Palmisano said in a statement.

The company said it expects to spend up to $12 billion on stock repurchases in 2008, and may buy shares in the open market or in private transactions. It said it expects to use cash from operations for the buybacks.

The new $15 billion share buyback authorization program adds to about $400 million remaining at the end of February from a prior authorization, IBM said. IBM said it does not anticipate requesting board approval for additional funds for stock repurchases within the next 12 months.

Shares of IBM were up 3.17 percent at $113.25, after hitting an earlier high of $114.03. The Dow Jones Industrial Average <.DJI> was up 0.28 percent, or 34.68 points.

(Reporting by Tiffany Wu, editing by Gerald E. McCormick, Phil Berlowitz)


(c) Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

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