Western Union expecting to improve cash flow in 2008, benefit from lower tax rates

By Jennifer Lanning Drey

Portland, Ore., June 20 - Western Union Corp. expects to generate $1.2 billion of cash flow from operations in 2008, up from $1.1 billion in the prior year, Scott Scheirman, chief financial officer of Western Union, said Friday during the company's annual investors' meeting.

Western Union's cash balance will benefit significantly from lower international tax rates as an increased level of its profits are generated outside of the United States.

"Our cash flow is more than sufficient to meet our modest capital expenditure needs," Scheirman said.

Western Union's priorities for cash usage are investments to grow the business, acquisitions and return of capital to shareholders, primarily through stock buybacks, he said.

During the Friday presentation, the company announced that its board had authorized an additional $1 billion for stock buybacks.

Western Union is an Englewood, Colo.-based money transfer network.

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