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updated 02:05, Sat October 27, 2007

Graham Declares 5-For-4 Stock Split, Raises Quarterly Dividend to 3 Cents Per Share

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BATAVIA, N.Y. (AP) -- Graham Corp., which makes ejectors, pumps and vacuum systems, said Friday its board of directors declared a 5-for-4 stock split and raised its post-split quarterly cash dividend to 3 cents per share.

The stock split, to be paid in the form of a dividend, will give shareholders one additional common share for every four shares held as of Nov. 30. The stock split will be payable on Jan. 2, and cash will be paid instead of fractional shares, based on the company's stock closing price.

The company had roughly 3.9 million shares outstanding as of Friday. After the distribution of the stock dividend, it will have about 4.9 million shares outstanding.

The new dividend, which will replace the company's current dividend of 2.5 cents, will be paid on a post-split basis Jan. 2 to shareholders on record as of Nov. 30.

Shares of Graham added $6.90, or 15.1 percent, to $52.50, after hitting a high of $57.65 during an earlier trading session.

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