TORONTO, Feb. 7 /PRNewswire-FirstCall/ -- Inco Limited announced today that it has increased its quarterly dividend from $0.10 (U.S.) to $0.125 (U.S.) per share, and declared that the next quarterly dividend at this increased level will be payable March 1, 2006 to shareholders of record as of February 17, 2006.
Scott M. Hand, Inco's Chairman and Chief Executive Officer noted: "This increase in our quarterly dividend reflects our continued positive outlook for the nickel markets and our strong financial position."
This increased quarterly dividend will be payable in U.S. dollars to all shareholders who are U.S. residents and will be convertible into and payable in Canadian dollars for all Canadian residents based upon the Bank of Canada noon rate of exchange on February 17, 2006 unless a Canadian resident elects to receive their dividend in U.S. dollars by advising our transfer agent and registrar, CIBC Mellon Trust Company, in writing of such election before February 17, 2006. Shareholders can find out how to make this written election by contacting CIBC Mellon Trust Company at 1-800-387-0825. Based upon current tax legislation in Canada and applicable tax treaties, this dividend will generally be subject to a Canadian withholding tax of 15 per cent for shareholders resident in the United States, the United Kingdom and most western European countries and may be subject to higher withholding taxes applicable to other non-residents of Canada. The dividend may be subject to U.S. back-up withholding taxes for U.S. residents who have not filed a W-9 or equivalent form meeting applicable U.S. regulatory requirements.
As previously announced, the Company plans to release its 2005 financial results before the financial markets in North America open on February 14, 2006.
This news release contains forward-looking statements regarding the Company's anticipated financial performance and financial position and views on the global nickel market. Inherent in those statements are known and unknown risks, uncertainties and other factors well beyond the Company's ability to control or predict. Actual results and developments may differ materially from those contemplated by these statements depending on, among others, such key factors as business and economic conditions in the principal markets for the Company's products, the supply, demand and prices for metals to be produced, purchased nickel intermediates and nickel-containing stainless steel scrap and other substitutes and competing products for the primary metals and other products the Company produces, the Company's deliveries, production levels, production and other anticipated and unanticipated costs and expenses, the ability to continue to pay quarterly cash dividends in such amounts as Inco's Board of Directors may determine in light of other uses for such funds and other risk factors listed from time to time in the Company's reports filed with the U.S. Securities and Exchange Commission. The forward- looking statements included in this release represent the Company's views as of the date of this release. While the Company anticipates that subsequent events and developments may cause the Company's views to change, the Company specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of this release.
