Supply Chain Initiative: The Company's previously announced supply chain project is an ambitious five-year project that is expected to improve service and enable us to expand margins through eight separate but complementary supply chain initiatives focused on improving how we procure goods and services, manage inventory and execute other supply chain activities that are key to our customer centric approach. While the project commenced in 2007 and some modest benefits are expected in 2008, management does not expect significant annual pretax income benefits to result until 2009. Annual benefits of $10 to $15 million, as early as 2009, are expected to increase in roughly ratable amounts to between $35 and $45 million annually by 2012. Based on current shares outstanding, this could increase diluted earnings per share by $.05 to $.08 in 2009, increasing to $.19 to $.24 by 2012, and improve pretax and operating margins by as much as 150 basis points when the full benefits of the project are realized. These benefits are above and beyond our current expectations to continue to generate $15 million in annual pretax savings from process improvements, with the majority of these $15 million in savings expected to be reinvested to support achieving revenue growth targets just as they have been historically.
Dividend: At a meeting held today, the Company's Directors declared a
quarterly cash dividend of $.13 per share, an increase of 13.0% from the
prior quarterly dividend amount. This dividend is payable on March 14, 2008
to shareholders of record on February 29, 2008. This marks the 32nd
consecutive increase in the
|SOURCE Sigma-Aldrich Corporation|
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