By Business Wire, March 21, 2013, 07:00:00 AM EDT
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
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
"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.