Smith & Nephew buys into India, announces $300M share buyback as Q1 profits slide on flat sales

May 2, 2013 by Brad Perriello

Smith & Nephew announced a $300 million share repurchasing program and an acquisition in India's mid-tier trauma sector, alongside sliding 1st-quarter profits and flat sales.

Smith & Nephew buys into India, announces $300M share buyback as Q1 profits slide on flat salesbuyback, India acquisition

Smith & Nephew (FTSE:SN, NYSE:SNN) said it bought into the mid-tier trauma business in India and announced a $300 million share buyback alongside lower 1st-quarter profits and flat sales.

The British medical device company said profits for the 3 months ended March 30 were $143 million, or 79¢ per share, on sales of $1.08 billion, for a bottom-line slide of 10.1% and a sales decline of 0.4% compared with Q1 2012.

Adjusted to exclude reorganization and acquisition costs, trading profits were $241 million, or 92.5¢ per share, down 4.4%.

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"Smith & Nephew has consistently delivered revenue and earnings growth together with strong cash generation in the challenging markets of the last few years. In light of this, and our confidence in the continued execution of our strategic priorities, we have undertaken a major review of our capital allocation framework," CEO Olivier Bohuon said in prepared remarks."We will continue to invest in our growth products, franchises and geographies and maintain adequate headroom for further significant acquisitions. We have increased the level of dividend and moved to a progressive policy. Further to these commitments, today we are announcing the start of a share buy-back programme to return $300 million of surplus capital to our shareholders."