IFF Increases Quarterly Dividend to $0.25 per Share; Announces Completion of Accelerated Share Repurchase Program
NEW YORK, July 22 /PRNewswire-FirstCall/ -- International Flavors & Fragrances Inc. (NYSE: IFF), a leading creator of flavors and fragrances for consumer products, today announced that its Board of Directors has approved an increase to the Company's quarterly dividend from $0.23 to $0.25 per common share, a 9 percent increase. The dividend is payable on October 2, 2008 to shareholders of record on September 18, 2008. IFF has increased its dividend 19 percent since October 2006. The Company's goal is to pay an annual dividend in the range of 30 percent to 35 percent of earnings.
IFF also said that it completed its accelerated share repurchase ("ASR") program during the second quarter 2008. The ASR program was a component of the Company's share buyback activities and allowed for the repurchase of up to 15 percent of its shares outstanding.
"Today's announcement underscores IFF's commitment to our shareholders," said Robert M. Amen, Chairman and Chief Executive Officer. "By increasing the dividend and completing the accelerated share repurchase program, we are building shareholder value through the disciplined use of our free cash flow."
Under the ASR program, which was announced on September 17, 2007, IFF paid $450 million in return for 8 million shares. The number of shares purchased by IFF under the ASR agreement was subject to an adjustment based on the volume-weighted average price of IFF common stock during the term of the agreement. Based on this adjusted factor, an additional 1.7 million shares of common stock were delivered to IFF, resulting in a total of 9.7 million shares purchased under the ASR program for an average price of $46.53 per share. The shares repurchased represent approximately 11 percent of the Company's shares outstanding at the time the ASR was entered into in September 2007.
About International Flavors & Fragrances Inc.
IFF is a leading creator of flavors and fragrances used in a wide variety of consumer products and packaged goods. Consumers experience these unique scents and tastes in fine fragrances and beauty care, detergents and household goods, as well as beverages, confectionary and food products. The Company leverages its competitive advantages of brand understanding and consumer insight combined with its focus on R&D and innovation, to provide customers with differentiated product offerings. A member of the S&P 500 Index, IFF has sales, manufacturing and creative facilities in 31 countries worldwide. For more information, please visit our website at www.iff.com.
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SOURCE: International Flavors & Fragrances Inc.
Yvette Rudich, Director of Corporate Communications
Melissa Sachs, Manager, Corporate Communications