Ceridian Announces Fuel Price Risk Management Program for 2006
Also Completes Repatriation of Accumulated Foreign Earnings Under the American Jobs Creation Act
Minneapolis (January 20, 2006) – Ceridian Corporation (NYSE:CEN) announced today that it has completed its fuel price risk management program for 2006. On January 17, 2006, the Company purchased instruments to raise its coverage to 80% of its anticipated diesel fuel price related earnings exposure for the year at an average price of approximately $2.55 per gallon. The instruments are designed to enhance the visibility and predictability of the Company’s future earnings. Under a similar program in 2005, the Company locked in a price of approximately $1.92 per gallon on 100% of the anticipated diesel fuel price related earnings exposure for that year.
Ceridian also today reported that it had completed the previously contemplated repatriation of accumulated foreign earnings under the American Jobs Creation Act of 2004 (AJCA), as had been discussed by the Company in its Form 10-Q filing for the third quarter of 2005. Accordingly, in December 2005 the Company’s Canadian subsidiary declared and paid a gross dividend (before withholding taxes and other statutory holdbacks) of $130 million. The repatriation was funded primarily through on-hand cash balances and, to a lesser extent, bank borrowings by the Company’s Canadian subsidiary. The funds received will be deployed under a qualified investment plan as defined by the AJCA.
Ceridian Corporation (www.ceridian.com) is an information services company serving businesses and employees in the United States, Canada and Europe. Ceridian is one of the top human resources outsourcing companies in each of its markets, and offers a broad range of human resource services, including payroll, benefits administration, tax compliance, HR information systems and employee advisory programs. Through its Comdata subsidiary, Ceridian is a major payment processor and issuer of credit cards, debit cards and stored value cards, primarily for the trucking and retail industries in the United States.
Source: Ceridian
