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GENERAL DYNAMICS' BOARD OF DIRECTORS DECLARES $12 PER SHARE SPECIAL DISTRIBUTION, INCREASES DIVIDEND

 FALLS CHURCH, Va., Sept. 15 /PRNewswire/ -- The board of directors of General Dynamics Corporation (NYSE: GD) today declared a special distribution of $12 per share on the company's common stock. Payable Oct. 12, 1993, to shareholders of record Sept. 28, 1993, the special distribution is the third such payment made to shareholders under the Plan of Contraction adopted by the board in May 1992. The first was $20 per share paid in April 1993 and the second was $18 per share paid in July 1993. The total of $50 per share from the three special distributions represents substantially all of the funds available for tax-advantaged distribution to shareholders from sales of businesses completed to date under the Plan of Contraction.
 Board Chairman William A. Anders said: "This special distribution underscores our continuing belief that the most efficient way to convert surplus defense assets to productive non-defense uses is to return funds in excess of our financial and reinvestment needs directly to our investors. Including today's board action, since Jan. 1, 1991, General Dynamics has returned $3 billion through debt repayments, special distributions and a tender offer to lenders and shareholders, permitting them to decide how to best reinvest in America for growth, new jobs and a stronger competitive edge for our nation."
 In a separate action, the board of directors also increased the company's regular quarterly dividend to 60 cents per share, a 50 percent increase from previous levels. The board action brings the company's indicated annual dividend rate on the company's common stock to $2.40 per share vs. the previous indicated annual dividend rate of $1.60 per share. The 60 cent per share regular dividend declared today is payable Nov. 12, 1993, to shareholders of record Oct. 15, 1993. General Dynamics has 31 million shares outstanding.
 Commenting on the dividend action, Anders said, "The decision to increase our regular quarterly dividend reflects the board's confidence in the stability of the strong cash flows generated by the company's continuing operations. This confidence reflects our successful restructuring of General Dynamics over the past two years, the strengths of our continuing operations going forward and our ongoing progress in reducing costs and risks while improving financial performance." Anders said that the board would continue to review the company's quarterly dividend rate from time to time, as it deemed appropriate.
 -0- 9/15/93
 /CONTACT: Al Spivak of General Dynamics, 703-876-3190/
 (GD)


CO: General Dynamics Corporation ST: Virginia IN: ARO SU: DIV

MH-DC -- DC028 -- 2338 09/15/93 15:11 EDT
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Publication:PR Newswire
Date:Sep 15, 1993
Words:420
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