* $300 mln buyback planned alongside continued investment,
* S&N buying small Indian business Sushrut-Adler
* Q1 revenues $1.075 bln vs consensus $1.07 bln
* Q1 adjusted EPS 18.5 cents vs consensus 18 cents
By Ben Hirschler
LONDON, May 2 Medical devices maker Smith &
Nephew is to hand back cash to shareholders through a
$300 million share repurchase programme.
The supplier of artificial hips and knees announced the
buyback on Thursday as part of a new capital allocation that
will also see a commitment to continuing investment and
Industry analysts had been eagerly anticipating news on the
company's plans for the use of its cash, although they were
uncertain whether it would opt for a share repurchase scheme.
Chief Executive Olivier Bohuon said there was scope to
return surplus capital despite ongoing investment. "We will
continue to invest in our growth products, franchises and
geographies and maintain adequate headroom for further
significant acquisitions," he said.
The company said it was making a small acquisition in India
by buying Adler Mediequip and with it the brands and assets of
Sushrut Surgicals, a maker of orthopaedic trauma products for
the Indian market, for an undisclosed sum.
The buyback news came as the group posted first-quarter
revenue of $1.075 billion, against $1.079 billion a year ago,
and adjusted earnings per share of 18.5 cents against 19.3.
Analysts, on average, had expected revenue of $1.07 billion
and adjusted earnings per share of 18 cents, according to
Thomson Reuters I/B/E/S.
The British company, which competes with Johnson & Johnson
, Zimmer and Stryker in implants, said
its outlook for 2013 was unchanged from the view which it set
out with 2012 results in February.
However, the orthopaedic reconstruction business is seeing
slightly lower growth than expected, relative to the market,
while the recently acquired Healthpoint wound management unit is
performing more strongly than previously indicated.
Investors have been anticipating a slowdown in orthopaedic
reconstruction, pending the launch of new products towards the
end of year.