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QUAKER STATE DECLARES TEN CENTS PER SHARE DIVIDEND, AUTHORIZES STOCK BUYBACK PROGRAM

 OIL CITY, Pa., July 29, 1993 -- The board of directors of Quaker State Corporation (NYSE: KSF) today declared a quarterly dividend of 10 cents per share.
 The dividend will be payable Sept. 15, 1993, to shareowners of record on Aug. 13, 1993. The prior quarterly dividend of 20 cents per share was at a rate in excess of 1992 income from continuing operations.
 The board of directors also authorized management to buy back, if and when deemed advisable, up to two million shares of the 27.2 million shares of common stock outstanding.
 In announcing the actions, Herbert M. Baum, recently elected chairman and chief executive officer of Quaker State Corporation said, "Quaker State has paid out more in dividends that it has earned for the past six years. The board's actions are consistent with its goal of reinvigorating the company and managing assets for the long-term. It has determined that a dividend payout ratio averaging approximately 40 to 50 percent of earnings is consistent with the long-term objectives of the company."
 Baum said, "The dividend reduction is a prudent business decision. No company can continue to pay dividends in excess of its earnings and at the same time build long-term shareowner value. The new dividend rate indicates our intention to use our profits to achieve a proper balance for our shareowners between current dividend income and investment in the future growth of their company. It will provide needed funds to accelerate aggressive brand-building efforts designed to increase motor oil sales."
 Quaker State's cash flow from operations remains strong, Baum pointed out, exceeding $20 million for the first six months of the year. Earlier this week, the company announced that earnings for the second quarter ended June 30, 1993, increased 37 percent over the second quarter of 1992, to $4.4 million, or 16 cents per share.
 Quaker State Corporation is principally a producer of branded motor oil and lubricants, and a marketer of products and services in the automotive aftermarket. Subsidiaries produce crude oil and natural gas, manufacture safety lighting equipment for cars and trucks, market credit life and indemnity insurance policies chiefly through auto dealers, and provide efficient and inexpensive fast lube services.
 -0- 7/29/93
 /CONTACT: Benton H. Faulkner of Quaker State, 814-676-7883/
 (KSF)


CO: Quaker State Corporation ST: Pennsylvania IN: OIL AUT SU: DIV

KC -- PG010 -- 7338 07/29/93 15:19 EDT
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Publication:PR Newswire
Date:Jul 29, 1993
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