Arvin Announces Two Initiatives to Enhance Shareholder Value and Declares Quarterly Cash Dividend.Business Editors COLUMBUS, Ind.--(BUSINESS WIRE)--Feb. 10, 2000 Arvin Industries, Inc. (NYSE NYSE See: New York Stock Exchange :ARV ARV abbr. Bible American Revised Version ARV n abbr (= American Revised Version) → traducción americana de la Biblia ARV n abbr (= ) announced today that the company's Board of Directors has authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: two initiatives to further enhance shareholder value in light of recent depressed share price levels. Both programs are continuing evidence that the Board and management of Arvin are firmly committed to maximizing long-term shareholder value. BOARD AUTHORIZES SHARE REPURCHASE Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. PROGRAM The Board of Directors authorized the purchase of up to 1 million shares of its common stock during 2000. Purchases will be made in the open market or in privately negotiated transactions, depending upon share price and other considerations. V. William Hunt This could refer to
ARVIN ADOPTS ECONOMIC PROFIT INITIATIVE The Board also approved an enhanced management system based on Economic Profit (EP) designed to even more closely align company decisions and actions with long-term shareholder interests. Bill Hunt said, &uot;We're delighted with the Board's support of this new system. Investors require superior returns on the capital we manage. Utilizing EP as the primary measure of management performance is the best way to help all employees manage our assets effectively and deliver those superior returns. Our asset management record is outstanding due to the strong influence of the Arvin Total Quality Production System, which is based on achieving leanness throughout our operations and value chain. The use of EP will provide even greater discipline to our investment decision making and will be the primary driver of incentive pay.&uot; Arvin's EP framework goes beyond the traditional measures of economic value. &uot;We believe that implementation of true Economic Profit requires more than capital adjustments and a bonus program,&uot; said Hunt. &uot;Employees must have an incentive to improve performance, the information necessary to make good decisions and the ability to influence positive change. The new executive incentive plan is the first step in an overall strategy to link all employees to the drivers of EP. &uot;The EP framework is a logical outgrowth of Arvin's highly successful Total Quality process. We've been aligning systems and training at all levels for many years,&uot; Hunt said. &uot;We expect a smooth implementation of the EP system because we have in place measurement systems for financial and quality improvement. Using EP will allow us to make better business decisions -- where we employ capital and how we increase operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. . It will provide an additional measure of financial discipline to both our 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. and the execution of our growth strategy.&uot; BOARD DECLARES CASH DIVIDEND The Board also declared today a quarterly cash dividend of 22 cents per common share, payable March 31, 2000 to shareholders of record as of the close of business on March 3, 2000. This is the seventy-sixth consecutive year in which cash dividends have been paid on Arvin common stock. Arvin Industries, Inc., is a global manufacturer of automotive components with over 60 manufacturing facilities and 6 technical centers located in 22 countries. Arvin is a leading manufacturer of automotive exhaust systems Noun 1. exhaust system - system consisting of the parts of an engine through which burned gases or steam are discharged exhaust automobile engine - the engine that propels an automobile ; ride control products; air, oil and fuel filters; and gas charged lift supports. Our replacement products are sold under various trademarks including Arvin, Maremont, Timax, ANSA ANSA - Advanced Network Systems Architecture and ROSI ROSI Return on Security Investment ROSI Repository of Student Information ROSI Rollergirls of Southern Indiana (Evansville, IN) ROSI Raytheon Optical Systems Incorporated ROSI Romanian Open Source and Free Software Initiative exhaust systems; Gabriel and RydeFX shock absorbers Shock absorbers See: Circuit breakers ; Purolator filters; and StrongArm gas charged lift supports. For more information on Arvin Industries via the Internet, visit our Corporate Home Page at http://www.arvin.com or our Corporate News on the Net site at http://www.businesswire.com/cnn/arv.shtml. For information via fax, please call our News On Demand service at 888-622-1161. |
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