GUILFORD BOARD GREENLIGHTS BUYBACK TO 2.5M SHARES
GREENSBORO, N.C. — Guilford Mills Inc. said its board approved the buyback of up to 2.5 million shares of its stock, or about 10 percent of the mill’s shares outstanding.
Charles A. Hayes, chairman and chief executive officer, said the “board believes that the current low valuation of Guilford represents an attractive opportunity to repurchase shares.” He added that the buyback underscores the board’s “confidence in the sound business fundamentals of Guilford and its ability to achieve above-average growth.”
Guilford’s stock recently took a hit after the firm said earnings in the third quarter, which ended Monday, would fall to 48 cents a share from 59 cents a year ago.
Shares of Guilford closed Monday at 20 1/8, down 3/8on the New York Stock Exchange. Guilford’s 52-week high is 29 5/8 and its low, 18 1/2. Guilford has about 25.4 million shares outstanding.