London, Feb 23: Anglo-Dutch food and consumer products group Unilever Plc/NV on Tuesday reported that underlying 1998 profits rose three per cent and announced a five billion pound share buyback programme. The group reported 1998 pre-tax profits of 3.08 billion pounds ($5.01 billion) on sales of 27 billion pounds, but warned that the overall economic outlook for 1999 was uncertain, saying that its businesses in Europe may grow more slowly.The company said the special dividend payout was equivalent to 66.13 pence per existing Unilever Plc share and 14.50 guilders per Unilever NV share. It involves consolidation of 112 old shares into 100 new shareholders in both the British and Dutch companies.
The special dividend is equivalent to around 10.6 per cent of the group's combined market capitalisation of some 47 billion pounds, and the company said the payout was consistent with its stated objective of increasing shareholder value. Unilever Plc Chairman Niall FitzGerald said in the results statement, ``Theoverall economic outlook for 1999 is uncertain. We assume good economic growth in North America, but Europe may grow more slowly. An early recovery in South East Asia and Latin America cannot be relied upon.''
Unilever Plc announced a final dividend of 7.75 pence per share bringing its total 1998 year dividend to 10.70 pence per ordinary share, giving an increase of 27 per cent over 1997. Unilever NV raised its dividend to 1.70 guilders from 1.49, making a total of 2.51 guilders against 2.23 guilders last year.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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