Covidien plc : Covidien Announces Dividend Increase of 12.5%
09/22/2011| 04:05pm US/Eastern
Covidien plc (NYSE: COV) today announced that its Board of Directors has
declared a 12.5% increase in the quarterly dividend rate, from $0.20 per
ordinary share to $0.225 per ordinary share.
"This increase reflects our good performance to date in 2011, our
confidence in our future growth, sustainable cash flow and our
commitment to enhance shareholder value," said José (Joe) E. Almeida,
President and CEO.
"The combination of this dividend increase, coupled with our Board's
decision announced last month to authorize a new $2 billion share
repurchase program, underscores our commitment to balance cash return to
shareholders with reinvestment in our business. In the last twelve
months, we have returned more than 50% of our free cash flow to
shareholders, well above our target of 25% to 40%," Almeida added.
At the new rate, the annual dividend is $0.90 per ordinary share
compared to the previous rate of $0.80 per ordinary share. The next
quarterly dividend is payable on November 4, 2011, to shareholders of
record on October 13, 2011.
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 2010 revenue of $10.4 billion, Covidien has 41,000
employees worldwide in more than 65 countries, and its products are sold
in over 140 countries. Please visit www.covidien.com
to learn more about our business.
NON-GAAP FINANCIAL MEASURES
This press release contains a financial measure, free cash flow, which
is considered a "non-GAAP" financial measure under applicable Securities
& Exchange Commission rules and regulations.
This non-GAAP financial measure should be considered supplemental to and
not a substitute for financial information prepared in accordance with
generally accepted accounting principles. The Company's definition of
these non-GAAP measures may differ from similarly titled measures used
by others. The Company defines free cash flow as net cash provided by
continuing operating activities less capital expenditures. For the
twelve months ending June 2011, net cash provided by continuing
operating activities of $2,319 million less capital expenditures of $431
million resulted in free cash flow of $1,888 million.
Eric Kraus, 508-261-8305
Senior Vice President
Lannum, CFA, 508-452-4343
© Business Wire 2011