Smith & Nephew, the medical devices manufacturer, is now conducting a cash return program to its shareholders through a US$300 million repurchase program.
The company supplies artificial hips and knees and it has announced the share buyback program to commence on Thursday. This is part of a new capital application that would also view a commitment in continuing investments and acquisitions.
Many analysts are anticipating information on company's plans for the use of cash funds but many remain uncertain if they would agree to the share repurchase offer made.
According to CEO Olivier Bohoun, there was room to return surplus capital accumulated despite ongoing investment. He said, "We will continue to invest in our growth products, franchises and geographies and maintain adequate headroom for further significant acquisitions."
The buyback announcement comes as the group had reported first quarter revenues of US$1.075 billion compared to US$1.079 billion just last year with an adjusted earnings per share of just US$0.185 cents against US$0.193.
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