NEW YORK, Dec. 12 /PRNewswire-FirstCall/ -- Pfizer Inc said today that it is using its continuing strong cash flow from operations to increase its quarterly dividend 26 percent to 24 cents per share for the first quarter of 2006, while investing in new products and growth opportunities.
The company’s Board of Directors today declared the 24-cent dividend, which is payable on March 7, 2006 to shareholders of record on February 10, 2006.
“Increasing our dividend is the right thing to do for our shareholders, as we continue to build the investment value of Pfizer,” said Hank McKinnell, chairman and chief executive of Pfizer. “The strength of our operations is reflected in the fact that we can substantially increase our dividend while we invest for long-term growth. We will continue to take action to leverage our competitive strengths on behalf of our shareholders.”
The dividend increase is part of a series of actions to enhance short- and long-term returns for shareholders. Earlier this year, Pfizer began a productivity initiative designed to streamline its worldwide operations and to generate about $4 billion in annual cost savings and cash flow by 2008, with over $2 billion in cost savings and cash flow expected in 2006. Pfizer repatriated approximately $37 billion in foreign earnings this year, which it will use to reduce debt, enhance its balance sheet and invest in business opportunities. In addition, the company has purchased nearly $4 billion in common stock in 2005, and it will continue to buy back its stock in 2006.
Pfizer’s already strong cash flow from operations and financial flexibility will be enhanced by improvements in working capital management expected to generate additional cash flow of approximately $700 million in 2006. While the company continues to generate strong cash flow from operations, it has also continued to invest in future growth. Pfizer’s 2005 R&D investments are expected to be about $7.6 billion, and support a wide array of promising new product candidates in the company’s pipeline.
In addition, Pfizer has invested more than $2 billion in 2005 alone in licensing agreements and strategic acquisitions to acquire new product candidates and innovative technologies that support drug discovery.
As Pfizer previously announced, it will provide a comprehensive review of its strategy, operating performance, new product pipeline and financial outlook at its analyst meeting on February 10, 2006.
Pfizer traditionally declares its first quarter dividend in December of the previous year. The first quarter 2006 cash dividend will be the 269th consecutive quarterly dividend paid by Pfizer, and 2006 will mark the 39th consecutive year of annual dividend increases for Pfizer shareholders.
DISCLOSURE NOTICE: The information contained in this release is as of December 12, 2005. The Company assumes no obligation to update any forward- looking statements contained in this release as a result of new information or future events or developments.
This release contains forward-looking information about the Company’s cash flow and cost savings that involves substantial risks and uncertainties. A description of these risks and uncertainties can be found in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2004 and in its reports on Forms 10-Q and 8-K.
Photo: A free corporate logo to accompany this story is availableimmediately via Wieck Photo Database to any media with telephoto receiver orelectronic darkroom, PC or Macintosh, that can accept overhead transmissions.To retrieve a logo, please call 972-392-0888.//Company News On-Call: http://www.prnewswire.com/comp/688250.htmlPfizer Inc
CONTACT: Andy McCormick, +1-212-733-5469, or Paul Fitzhenry,+1-212-733-4637, both of Pfizer Inc
Web site: http://www.pfizer.com/
