April 28, 2014 / 9:02 PM / in 4 years

Herbalife lifts 2014 earnings outlook; cuts dividend to boost share buyback

April 28 (Reuters) - Weight-loss and nutritional products maker Herbalife Ltd on Monday reported a 9 percent increase in global sales volumes for the first quarter and raised its outlook for the full year.

Herbalife also said it was suspending its quarterly dividend in order to use the cash to repurchase additional shares.

The company said it now expects 2014 earnings in the range of $6.10 to $6.30 per share.

Herbalife reported first-quarter net income of $74.6 million, or 74 cents per share, compared with $118.9 million, or $1.10 a share, a year earlier.

Adjusted net income for the quarter was $1.50 per share.

Revenue for the company, which sells products through a network of independent distributors, jumped 12 percent to $1.3 billion.

The company has been in the spotlight since hedge fund manager William Ackman alleged that Herbalife was a pyramid scheme. Ackman took a $1 billion short position against Herbalife in December 2012.

Several federal regulators are probing Herbalife’s operations.

Shares in Herbalife were up 0.9 percent to $59.39 in extended trading. (Reporting by Siddharth Cavale in Bangalore and Lisa Baertlein in Los Angeles; Editing by Leslie Adler)

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