Announcements to be Made at Investor Meeting by Cendant Corporation
Cendant Corporation Announces Commencement
of $1 Billion Stock Repurchase Program
Company Calls Wall Street EPS Estimates for
Fourth Quarter 1998 and FY 1999 'Reasonable'
Company to Pursue Monetizing Its Interactive Businesses
Cendant Will Continue to Sell Non-Core Assets
and Use Proceeds to Reduce Debt and Repurchase Stock
NEW YORK, Dec. 9 /PRNewswire/ -- At a meeting of institutional investors and sell-side analysts here today, Cendant Corporation (NYSE: CD) will announce it has commenced its previously reported stock repurchase program of up to $1 billion. To date, the Company has repurchased approximately $100 million of Cendant common stock.
Additionally, the Company will announce that its preliminary expectations for fourth quarter 1998 and full year 1999 earnings per share from continuing operations, excluding certain charges related to the settlement payment to American Bankers, gains on asset sales, investigation costs and other unusual charges, are in line with Wall Street estimates, as published on First Call, of $0.18 - $0.20 for fourth quarter 1998 (an increase of 38% - 54% compared to the same period in 1997) and $1.00 - $1.13 for full year 1999.
Cendant also will announce that it is actively considering strategic alternatives in regard to the potential sale of a portion of the Company's interactive businesses.
"With strong fourth quarter performance in our Real Estate and Travel segments and improved results within the former CUC business units, we remain confident in the Company's continued EPS growth," said Cendant Chairman, President and CEO, Henry R. Silverman. "In keeping with our strategy of selling non-core assets and using the proceeds to reduce debt and repurchase Cendant stock, we will continue to pursue additional asset sales in 1999." |
