Covidien Expands Share Repurchase Program and Declares Quarterly Cash
DUBLIN -- March 21, 2013
Covidien plc (NYSE: COV) today announced that its Board of Directors has
authorized a new program to purchase up to $3 billion of the Company’s
ordinary shares from time to time, based on market conditions. This program is
in addition to the $2.0 billion share repurchase program announced in August
2011, which currently has approximately $425 million remaining.
In the twelve months ending December 2012, Covidien returned more than $1.75
billion to shareholders in dividends and share repurchases, representing
nearly 100% of its free cash flow. This is well above the Company’s stated
annual goal of returning at least 50% of free cash flow to shareholders.
“The Board's approval to expand our share repurchase program reflects its
confidence in the continued growth of Covidien’s business, the sustainability
of our free cash flow and our commitment to enhance shareholder value," said
José E. Almeida, Chairman, President and CEO. “We remain committed to
maintaining a strong balance sheet, while increasing our dividend payout ratio
over time and opportunistically returning excess cash to shareholders. We
expect to continue to fund our growth initiatives, pursue strategic
opportunities for business expansion and deliver on our financial objectives.”
The Company also announced that its Board of Directors has declared a
quarterly cash dividend of $0.26 per ordinary share. The dividend is payable
on May 3, 2013, to shareholders of record on April 4, 2013.
Covidien is a leading global healthcare products company that creates
innovative medical solutions for better patient outcomes and delivers value
through clinical leadership and excellence. Covidien manufactures, distributes
and services a diverse range of industry-leading product lines in three
segments: Medical Devices, Pharmaceuticals and Medical Supplies. With 2012
revenue of $11.9 billion, Covidien has 43,000 employees worldwide in 70
countries, and its products are sold in over 140 countries. Please visit
www.covidien.com to learn more about our business.
Bruce Farmer, 508-452-4372
Coleman Lannum, CFA, 508-452-4343
Todd Carpenter, 508-452-4363
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