Protective clothing and condom maker Ansell has announced a $US100 million ($A140 million) share buyback which will take place over the next twelve months.
AAP reports that the company is looking to buy up to six million shares and says it has sufficient cashflow to make the buyback viable.
According to the Business Spectator, Ansell shares dropped 16 per cent in mid-August after the release of the company’s full year results and the announcement of an unexpectedly weak outlook.
“Providing attractive returns to shareholders through a disciplined approach to capital management remains central to Ansell’s strategy," chief executive Magnus Nicolin said.
"The buyback will form part of our continued approach to capital management and will complement our ongoing investment in improved manufacturing productivity and a continued focus on identifying strategic acquisitions with attractive returns.”
The company posted a net profit of $US 187.5 million for the 2015 financial year. The result was up from $US 157 million the previous year, however earnings per share for 2016 were forecast at $US1.05 – $US1.20, a drop from $US1.22 for the previous year.