Caterpillar enters agreement to buy back $1 billion in shares

By WEEK Reporter

July 29, 2013 Updated Jul 29, 2013 at 7:28 PM CDT

PEORIA, Ill. -- Caterpillar announced Monday that they have entered into an agreement with Societe Generale to buy back $1billion of its common stock.

According to Caterpillar, the repurchase involves approximately 11 million shares.

"The continued strength of our balance sheet and strong cash flow puts us in a good position to reaffirm our commitment to stockholders, even in the midst of a downturn," said Caterpillar Chairman and CEO Doug Oberhelman.

Caterpillar entered into a similar agreement with Citigroup Inc. in April of this year.