Lamb Weston Holdings, Inc. (NYSE: LW) announced today that its Board of Directors has approved an increase in the quarterly dividend and a share repurchase program.
Dividend
The Board of Directors declared a quarterly dividend of $0.20 per share of Lamb Weston common stock, an approximately 5 percent increase from $0.19125 per share in the prior quarter. The dividend is payable on March 1, 2019 to stockholders of record at the close of business on February 1, 2019.
In addition, the Company stated that it will continue to target an annual dividend payout ratio of 25 percent to 35 percent of Adjusted Diluted Earnings Per Share.
Share Repurchase
The Board of Directors also authorized the Company to repurchase up to $250 million of its common stock. The program has no expiration date.
Under the share repurchase program, the Company is authorized to repurchase shares of common stock in the open market, privately negotiated transactions or a combination of the foregoing. The timing and amount of stock repurchases will be subject to the Company’s evaluation of market conditions, applicable legal requirements and other factors.
About Lamb Weston
Lamb Weston is a leading supplier of
frozen potato, sweet potato, appetizer and vegetable products to
restaurants and retailers around the world. For more than 60 years, Lamb
Weston has led the industry in innovation, introducing inventive
products that simplify back-of-house management for our customers and
make things more delicious for their customers. From the fields where
Lamb Weston potatoes are grown to proactive customer partnerships, Lamb
Weston always strives for more and never settles. Because, when we look
at a potato, we see possibilities. Learn more about us at lambweston.com.
Forward-Looking Statements
This press release contains
forward-looking statements within the meaning of the federal securities
laws. Words such as “target,” “will,” and variations of such words and
similar expressions are intended to identify forward-looking statements.
Examples of forward-looking statements include, but are not limited to,
statements regarding the Company’s dividends and share repurchase
program. These forward-looking statements are based on management’s
current expectations and are subject to uncertainties and changes in
circumstances. Readers of this press release should understand that
these statements are not guarantees of performance or results. Many
factors could affect the Company’s actual financial results and cause
them to vary materially from the expectations contained in the
forward-looking statements, including those set forth in this press
release. These risks and uncertainties include, among other things: the
Company’s ability to successfully execute its long-term value creation
strategies; its ability to execute on large capital projects, including
construction of new production lines; the competitive environment and
related conditions in the markets in which it and its joint ventures
operate; political and economic conditions of the countries in which it
and its joint ventures conduct business and other factors related to its
international operations; disruption of its access to export mechanisms;
risks associated with possible acquisitions, including its ability to
complete acquisitions or integrate acquired businesses; its debt levels;
the availability and prices of raw materials; changes in its
relationships with its growers or significant customers; the success of
its joint ventures; actions of governments and regulatory factors
affecting its businesses or joint ventures; the ultimate outcome of
litigation or any product recalls; levels of pension, labor and
people-related expenses; its ability to pay regular quarterly cash
dividends and the amounts and timing of any future dividends; and other
risks described in the Company’s reports filed from time to time with
the Securities and Exchange Commission. The Company cautions readers not
to place undue reliance on any forward-looking statements included in
this press release, which speak only as of the date of this press
release. The Company undertakes no responsibility for updating these
statements, except as required by law.
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