Fortive Corporation (“Fortive”) (NYSE: FTV) announced today that its Board of Directors approved a replenishment of 11 million shares of Fortive common stock to the Company’s previously announced share repurchase authorization, bringing the total amount for future repurchases to 20 million shares, including 9 million shares available under the prior authorization by the Board of Directors announced on February 17, 2022.
James Lico, President and Chief Executive Officer, stated, “Fortive is focused on maintaining a thoughtful approach to capital allocation, prioritizing the pursuit of disciplined M&A, in order to drive value for our shareholders. We are pleased to replenish our repurchase authorization, which along with an increased quarterly dividend and accelerated M&A returns, reflects the execution of our strategy, robust cash generation and ability to deliver profitable growth. The Board of Directors remains confident that Fortive is well positioned to enhance total shareholder returns as we look to roughly double our earnings and cash flow by 2028.”
Under the share repurchase authorization, Fortive may purchase its common stock on a discretionary basis from time to time on the open market or in privately negotiated transactions, including through the use of trading plans that satisfy the conditions of Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, in accordance with the requirements of the Securities and Exchange Commission.
The timing and amount of common stock repurchases made under the authorization will be determined by Fortive’s management based on its evaluation of market conditions and other factors. Repurchases may be made from time to time through open market purchases and/or privately negotiated transactions. The repurchase authorization has no expiration date and does not obligate Fortive to acquire any particular amount of shares and may be suspended or discontinued at any time.
FORWARD-LOOKING STATEMENTS
Statements in this release that are not strictly historical, including statements regarding Fortive’s plans with respect to share repurchases, ability to deliver shareholder value or return, and future financial performance and any other statements identified by their use of words like “anticipate,” “expect,” “believe,” “outlook,” “guidance,” or “will” or other words of similar meaning are “forward-looking statements” within the meaning of the federal securities laws. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including, but not limited to, the possibility that the share repurchase program may be suspended or discontinued, deterioration of or instability in the economy, the markets we serve, international trade policies, the condition of the financial markets and the banking systems, the spread of, and the future resurgence of COVID-19, our ability to adjust purchases, supply chain management, and manufacturing capacity to reflect market conditions and customer demand, reliance on sole sources of supply, changes in relations with China, contractions or lower growth rates and cyclicality of markets we serve, competition, changes in industry standards and governmental regulations, our ability to recruit and retain key employees, our ability to successfully identify, consummate, integrate and realize the anticipated value of appropriate acquisitions and successfully complete divestitures and other dispositions, our ability to develop and successfully market new products, software, and services and expand into new markets, the potential for improper conduct by our employees, agents or business partners, contingent liabilities relating to acquisitions and divestitures, impact of changes to tax laws, our compliance with applicable laws and regulations and changes in applicable laws and regulations, risks relating to international economic, geopolitical, including war and sanctions, legal, compliance and business factors, risks relating to potential impairment of goodwill and other intangible assets, currency exchange rates, tax audits and changes in our tax rate and income tax liabilities, the impact of our debt obligations, including our cost of debt, on our operations, litigation and other contingent liabilities including intellectual property and environmental, health and safety matters, our ability to adequately protect our intellectual property rights, risks relating to product, service or software defects, product liability and recalls, risks relating to product manufacturing, our relationships with and the performance of our channel partners, commodity costs and surcharges, security breaches or other disruptions of our information technology systems, adverse effects of restructuring activities, risk related to tax treatment of the separation of Vontier, impact of our indemnification obligation to Vontier, impact of changes to U.S. GAAP, labor matters, and disruptions relating to man-made and natural disasters and climate change. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our Annual Report on Form 10-K for the year ended December 31, 2022. These forward-looking statements speak only as of the date of this release, and Fortive does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise.
ABOUT FORTIVE
Fortive is a provider of essential technologies for connected workflow solutions across a range of attractive end-markets. Fortive’s strategic segments—Intelligent Operating Solutions, Precision Technologies, and Advanced Healthcare Solutions—include well-known brands with leading positions in their markets. The company’s businesses design, develop, service, manufacture, and market professional and engineered products, software, and services, building upon leading brand names, innovative technologies, and significant market positions. Fortive is headquartered in Everett, Washington and employs a team of more than 18,000 research and development, manufacturing, sales, distribution, service and administrative employees in more than 50 countries around the world. With a culture rooted in continuous improvement, the core of our company’s operating model is the Fortive Business System. For more information please visit: www.fortive.com.
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