Albertson's, Inc., Increases Stock Purchase Program to $1.5 Billion.Business Editors BOISE, Idaho--(BUSINESS WIRE)--Dec. 7, 2000 Extends Time Frame for Stock Purchases Announces $1.5 Billion Reduction in Capital Expenditures Over Next Five Years Albertson's, Inc. (NYSE NYSE See: New York Stock Exchange :ABS (Automatic Backup System) See backup program. ), Board of Directors has increased the current $500 million stock purchase program by an additional $1 billion, for a total of a $1.5 billion authorization The right or permission to use a system resource; the process of granting access. See access control. for the purchase of Company common stock. The revised stock purchase program authorizes, but does not require, the Company to purchase and retire up to $1.5 billion of the Company's common stock during the period beginning April 25, 2000, and ending December 6, 2001. The timing and quantity of such purchases, if made, are at management's discretion. Through the third quarter, the Company had purchased and retired a total of 14.6 million shares of common stock under this program at a total cost of $350 million. "We remain focused on our three key objectives -- increase sales, reduce expenses and increase return on capital -- and we have identified specific areas to target for each objective. When combined with our many Company strengths, execution of these objectives will improve both our top and bottom lines as well as allow us to enhance our strong cash flow generation. Our five-year capital expenditure plan is being reduced by $1.5 billion to approximately $10 billion, including leases. This reduction includes our previously announced $500 million reduction in the 2001-2002 capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. program. We will focus our capital expenditures on remodels and new stores in existing markets. Our targeted capital expenditure program combined with our stock purchase program should enhance shareholder value going forward," said Gary Michael, chairman and chief executive officer of Albertson's. Albertson's, Inc., is one of the largest retail food and drug chains in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Based in Boise, Idaho “Boise” redirects here. For other uses, see Boise (disambiguation). Boise is the capital and most populous city of the U.S. state of Idaho. It is the county seat of Ada County and the principal city of the Boise metropolitan area. , the Company currently operates over 2,500 retail stores in 36 states across the United States. The Company does not undertake to update forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. in this news release to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking information. Assumptions and other information that could cause actual results to differ from those set forth in the forward-looking information can be found in the Company's filings with the Securities and Exchange Commission, including the Company's Form 10-Q Form 10-Q See 10-Q. . |
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