Increased 2013 Free Cash Flow leading to Share Buybacks?
CEO Sutherlin said in the conference call:
"And finally, let me address cash flow. We expect free cash flow to increase in 2013 as lower volumes allow us to monetize working capital. There are additional sources that will favorably impact free cash flow. Cash flow was reduced in 2012 by increased CapEx and the continuation of elevated pension funding. CapEx will come down in 2013 as we, like our customers, finish more projects than we start. And we expect our U.S. pensions to reach our funding targets by the end of 2013.
With increased cash -- free cash flow, capital allocation becomes an issue. We continue to believe that strategic acquisitions provide the path to highest returns, but we recognize that timing is not predictable. And as a result, our default value is share buybacks."