Smith & Nephew announces 300m dollar share buyback

Medical technology group Smith & Nephew said it plans to give back 300m dollars to shareholders in a buyback programme.

The group, which makes artificial hips, said the buyback is part of its new capital allocation framework for further investments and acquisitions.

The group also posted revenue of $1.075bn for the first quarter ended March 30th 2013 from $1.079bn the same time a year earlier after Advanced Wound Management and Healthpoint Biotherapeutics performed strongly.

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Pre-tax profit during the period fell to $204m from $231m. Adjusted earnings per share fell to 18.5 cents from 19.3 cents before.

Chief Executive Officer Olivier Bohuonof said: "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."

Smith & Nephew said it maintains its outlook for 2013 but does expect, however, to see some variation in performance at the product franchise level.

"In particular, in Advanced Wound Management, Healthpoint is performing more strongly than we previously guided. Conversely, we are seeing slightly lower growth in Orthopaedic Reconstruction, relative to the market, than we had expected," the group explained

CJ