CINCINNATI--(BUSINESS WIRE)--May 19, 2006--The Board of Directors
of Federated Department Stores, Inc. (NYSE:FD)(NYSE Arca:FD) today
approved a split of the company's common stock on a two-for-one basis.
The Board vote follows a previously announced intention by the Board
to split the stock if shareholders approved an increase in the number
of authorized shares of Federated common stock.
At the company's Annual Meeting this morning, Federated
shareholders approved an increase in the number of authorized shares
of Federated common stock from 500 million to 1 billion.
The stock split will be effected through a stock dividend
entitling each shareholder of record to receive one additional share
of common stock for every one share owned. Additional shares issued as
a result of the stock dividend will be distributed after close of
trading on June 9, 2006, to shareholders of record on May 26, 2006.
Shareholders do not need to exchange existing stock certificates and
will receive a Direct Registration Statement at the time of the split,
reflecting the newly issued shares.
Trading of Federated shares on a split-adjusted basis will begin
on June 12, 2006. This will be the first stock split since Federated
was listed in its current form on the New York Stock Exchange in
February 1992.
Adjusting for the two-for-one stock split, Federated's guidance is
for earnings per diluted share excluding one-time merger integration
and inventory valuation costs and gain on sale of credit receivables
of 39 cents to 44 cents in the second quarter of 2006, $1.50 to $1.62
in the third and fourth quarters combined, and $1.91 to $2.04 for the
year as a whole.
With the stock split, also as previously announced, Federated's
quarterly dividend will be 12.75 cents per outstanding common share,
payable July 3, 2006, to Federated shareholders of record at the close
of business on June 16, 2006.
Federated, with corporate offices in Cincinnati and New York, is
one of the nation's premier retailers, with fiscal 2006 sales expected
to be more than $27 billion. Federated operates more than 850
department stores in 45 states, the District of Columbia, Guam and
Puerto Rico under the names of Macy's, Bloomingdale's, Famous-Barr,
Filene's, Foley's, Hecht's, Kaufmann's, L.S. Ayres, Marshall Field's,
Meier & Frank, Robinsons-May, Strawbridge's and The Jones Store. The
company also operates macys.com and Bloomingdale's By Mail.
All statements in this press release that are not statements of
historical fact are forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Such statements
are based upon the current beliefs and expectations of Federated's
management and are subject to significant risks and uncertainties.
Actual results could differ materially from those expressed in or
implied by the forward-looking statements contained in this release
because of a variety of factors, including conditions to, or changes
in the timing of, proposed transactions, the risk the company will not
be able to divest the assets that it intends to divest or that the
amounts realized in connection with the divestitures are less than
anticipated, the risk that the company is not able to realize cost
synergies expected from the merger with May Company or is not able to
integrate the May Company as anticipated, the risk that shareholders
will not approve an increase in the number of authorized shares of
Federated common stock, prevailing interest rates, competitive
pressures from specialty stores, general merchandise stores,
manufacturers' outlets, off-price and discount stores, new and
established forms of home shopping (including the Internet, mail-order
catalogs and television) and general consumer spending levels,
including the impact of the availability and level of consumer debt,
the effect of weather and other factors identified in documents filed
by the company with the Securities and Exchange Commission.
(NOTE: Additional information on Federated, including past news
releases, is available at www.fds.com/pressroom)
CONTACT: Federated Department Stores, Inc.
Media - Jim Sluzewski, 513-579-7764
Investor - Susan Robinson, 513-579-7780
SOURCE: Federated Department Stores, Inc.
