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|Covidien Announces Highlights from Investor Meeting|
Chairman, President and CEO José (
“Despite the challenging external environment, we are delivering a very solid performance in 2013,” Almeida said. “Our focus on growth, leverage and capital allocation will be the drivers of our future performance. We will make further investments to expand our capabilities, particularly in emerging markets, and to capitalize on the market opportunities across our business.
“We are evolving our commercial model, offering value-added services, and launching a steady stream of new products in all product lines. Our strategic investment opportunities, combined with additional portfolio management activities, will accelerate our growth,” he added. “We will use our strong cash flow to fund business expansion, while remaining committed to return at least 50% of our free cash flow to shareholders through dividends and share repurchases.”
Chief Financial Officer
Excluding the impact of one-time items, the operating margin is expected
to be in the 21.5% to 22.5% range, and
Individuals who were unable to attend the meeting in person may view a replay of the presentations at Covidien’s website: http://investor.covidien.com. Presentation materials are also available at the same website.
NON-GAAP FINANCIAL MEASURES
This press release contains financial measures, including adjusted
operating margin and free cash flow, which are considered “non-GAAP”
financial measures under applicable
The Company presents its operating margin and effective tax rate forecast before special items to give investors a perspective on the expected underlying business results. Because the Company cannot predict the amount and timing of such items and the associated charges or gains that will be recorded in the Company’s financial statements, it is difficult to include the impact of those items in the forecast.
Free cash flow is defined as net cash provided by continuing operating activities less capital expenditures.
Any statements contained in this communication that do not describe
historical facts may constitute forward-looking statements as that term
is defined in the Private Securities Litigation Reform Act of 1995. Any
forward-looking statements contained herein are based on our
management's current beliefs and expectations, but are subject to a
number of risks, uncertainties and changes in circumstances, which may
cause actual results or Company actions to differ materially from what
is expressed or implied by these statements. The factors that could
cause actual future results to differ materially from current
expectations include, but are not limited to, our ability to effectively
introduce and market new products or keep pace with advances in
technology, the reimbursement practices of a small number of large
public and private insurers, cost-containment efforts of customers,
purchasing groups, third-party payors and governmental organizations,
intellectual property rights disputes, complex and costly regulation,
including healthcare fraud and abuse regulations and the Foreign Corrupt
Practices Act, manufacturing or supply chain problems or disruptions,
rising commodity costs, recalls or safety alerts and negative publicity