"Since we set our first dividend policy last October and completed our initial public offering last December, CME has generated a significant amount of cash," said Chairman Terry Duffy. "With CME's balance of cash and cash equivalents at approximately $400 million - and recent legislation that has eased the tax burden on dividends - our Board determined it was an appropriate time to increase CME's dividend."
"This change reflects CME's balance sheet health and focus on total return for our shareholders," said Jim McNulty, President and Chief Executive Officer. "It also brings CME closer to the average dividend yield of S&P 500® companies."
"As previously announced, CME's primary uses of cash are to improve our technology infrastructure, invest in opportunities that may arise due to consolidation in our industry and to pay our dividend," said Craig Donohue, who will become Chief Executive Officer on Jan. 1, 2004. "The dividend increase accomplishes our objectives without impacting our ability to pursue opportunities that are consistent with our growth strategies."
Chicago Mercantile Exchange Holdings Inc. became the first publicly traded U.S. financial exchange on Dec. 6, 2002. The company was added to the Russell 1000® Index on July 1, 2003. It is the parent company of Chicago Mercantile Exchange Inc. (www.cme.com), the largest futures exchange in the United States. As an international marketplace, CME brings together buyers and sellers on its trading floors and GLOBEX® electronic trading platform. CME offers futures contracts and options on futures primarily in four areas: interest rates, stock indexes, foreign exchange and commodities. The exchange moved about $1.5 billion per day in settlement payments in the first half of 2003 and managed $29.1 billion in collateral deposits at June 30, 2003.
Statements in this news release that are not historical facts are forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied in any forward-looking statements. More detailed information about factors that may affect our performance may be found in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, which is available in the Investor Information section of the CME Web site. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
Chicago Mercantile Exchange, CME and GLOBEX are registered trademarks of Chicago Mercantile Exchange Inc. S&P 500, Russell 1000 and other trade names, service marks, trademarks and registered trademarks that are not proprietary to Chicago Mercantile Exchange Inc. are the property of their respective owners, and are used herein under license. Further information about Chicago Mercantile Exchange Holdings Inc. and Chicago Mercantile Exchange Inc. is available on the CME Web site at www.cme.com.
