Plexus Corp. (PLXS), said its board of directors has approved a new stock repurchase program under which the company is authorized to repurchase up to $30 million of its common stock during fiscal 2014.
The planned repurchase represents approximately 3 percent of current market capitalization and is expected to be funded with existing cash. The company does not have a specific schedule or commitment for the repurchase of these shares; however, subject to market factors, the company expects to complete the authorized repurchases on a relatively consistent basis over fiscal 2014.
"In fiscal 2013, Plexus began a process of evaluating cash flows during our annual strategy planning process for the potential of returning cash to shareholders. The repurchase amount of $30 million for fiscal 2014 is based on our current available cash in the United States and expected free cash flow for the coming fiscal year. This repurchase continues our disciplined approach of returning cash to shareholders and our commitment to total shareholder return. We believe that repurchasing Plexus stock at current market prices is an attractive use of our capital resources, with the opportunity to create shareholder value," said Ginger Jones, senior vice president and CFO.