HAMILTON, Bermuda--(BUSINESS WIRE)--Covidien Ltd. (NYSE: COV; BSX: COV), a leading global provider of healthcare products, today announced that it would implement a restructuring program beginning in fiscal 2009 to improve its cost structure and to deliver improved operational growth.
The restructuring program, which includes projects in all four business segments and at corporate, will result in the Company incurring pre-tax charges of approximately $200 million beginning in the first quarter of fiscal 2009. Savings from the restructuring program are estimated at $50 million to $75 million on an annualized basis once the program is completed.
“This initiative will enable us to continue investing for future growth and profitability," said Richard J. Meelia, President and Chief Executive Officer. “We remain committed to making incremental investments in research and development to strengthen our portfolio and to expand into adjacent high-growth areas of the healthcare market.”
In addition, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.16 per common share. The dividend is payable on November 6, 2008, to shareholders of record on October 9, 2008.
ABOUT COVIDIEN LTD.
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 four segments: Medical Devices, Imaging Solutions, Pharmaceutical Products and Medical Supplies. With 2007 revenue of nearly $9 billion, Covidien has more than 42,000 employees worldwide in 57 countries, and its products are sold in over 130 countries. Please visit www.covidien.com to learn more about our business.
Any statements contained in this press release 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 payers and governmental organizations, intellectual property rights disputes, complex and costly regulation, including healthcare fraud and abuse regulations, manufacturing or supply chain problems or disruptions, recalls or safety alerts and negative publicity relating to Covidien or its products, product liability losses and other litigation liability, divestitures of some of our businesses or product lines, our ability to execute strategic acquisitions of, investments in or alliances with other companies and businesses, competition, risks associated with doing business outside of the United States, foreign currency exchange rates, potential environmental liabilities or increased costs after the separation from Tyco International or as a result of the separation. These and other factors are identified and described in more detail in our Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other periodic filings with the SEC. We disclaim any obligation to update these forward-looking statements other than as required by law.
Eric Kraus, 508-261-8305
Senior Vice President
Coleman Lannum, CFA, 508-452-4343
Bruce Farmer, 508-452-4372
Wayde McMillan, 508-452-4387
Source: Covidien Ltd.