--Paccar, Eaton Vance plan to issue extra cash dividends ahead
of a possible U.S. "fiscal cliff" after year-end
--Tootsie Roll, Pike Electric also plan to issue special
dividends this month
--Several companies are issuing extra dividends this month
before possible tax increases take effect in 2013
(Adds Tootsie Roll's and Pike Electric's special dividends,
updates share performance in final paragraphs.)
By Debbie Cai
Paccar Inc. (PCAR) and Eaton Vance Corp. (EV) said Tuesday they
are issuing extra cash dividends, joining other companies looking
to raise shareholder return ahead of the possible U.S. "fiscal
cliff."
Paccar declared an extra dividend of 80 cents a share, payable
on Dec. 28, citing strong results at the company. The payment will
cost the manufacturer of Kenworth and Peterbilt heavy-duty
commercial trucks about an extra $282 million. Paccar had about 353
million shares outstanding as of Oct. 31, according to regulatory
filings.
Chief Executive Mark Pigott said good truck production
world-wide, a robust aftermarket business and strong profits at the
Paccar Financial Services business have driven the company's
results this year.
The company also said it would issue its next regular quarterly
dividend of 20 cents a share March 5.
In October, Paccar said its third-quarter earnings fell 17% as
sales slid in Europe, the U.S. and Canada.
Eaton Vance's board declared a special dividend of $1 a share,
payable on Dec. 20, that will cost the mutual-fund manager about an
additional $115.2 million. The company had about 115.2 million
shares outstanding as of July 31.
It said the special payment won't affect earnings, although
earnings per diluted share might decline by about two cents in the
fiscal first quarter next year.
The money manager also said it was issuing a regular quarterly
dividend of 20 cents a share, payable on the same day as the
special dividend.
Eaton Vance's fiscal fourth-quarter earnings rose 13% as it
benefited from increased assets under management and net
inflows.
Tootsie Roll Industries Inc.'s (TR) declared a per-share special
dividend of 50 cents, to be paid on Dec. 28. The payment will cost
the candy company about $29.3 million extra. It had about 58.6
million shares outstanding as of Sept. 29.
The company also plans to issue its regular quarterly dividend
of eight cents a share on Dec. 28. Its latest quarterly dividend
payment was made in October.
Pike Electric Corp. (PIKE) also plans to issue a special
dividend. Its board declared it would pay $1 a share on Dec. 21 due
to strong fiscal first-quarter results.
The energy solutions company will fund the dividend, costing
about $35.1 million, with debt. It expects positive cash flows from
operating activities during the fiscal third quarter to be used to
repay the debt. It had more than 35 million in outstanding shares
as of Oct. 31.
Several companies have chosen to give one-time dividends or pull
their regular payouts into the current year to avoid a potential
dividend-tax increase in the U.S. in 2013 should a package of
spending cuts and tax hikes come into effect.
Paccar's shares were up seven cents at $43.49 after hours
Tuesday. The stock has risen 21% over the past six months.
Eaton Vance's shares were down four cents at $31.72 after hours.
The stock has gained 37% over the past half year.
Tootsie Roll's shares were up 1% at $28.60 after hours, while
Pike's shares were up 7.1% at $10.20.
Write to Debbie Cai at debbie.cai@dowjones.com
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