United Technologies may buy back up to 60 million of its shares, replacing an approximately $4.3 billion stock buyback program which began almost three years ago and is nearly spent, The Associated Press reports.
The Hartford industrial conglomerate said Monday that the new program’s value is $5.4 billion at today’s stock prices. It expects its repurchases to total about $1 billion this year, unchanged from a previous estimate.
Companies buy back stock in an effort to reward shareholders, as reducing the number of stock outstanding can lift earnings per share.
Last month, UTC reported a fourth-quarter profit, excluding one-time items, met Wall Street’s expectations. Revenue fell short of analysts’ estimates.
Shares of United Technologies Corp. dropped 38 cents to $89.46 in morning trading.
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