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McKesson continues share buyback as cash flow remains strong

30th Jul 2010, 5:43 pm
McKesson continues share buyback as cash flow remains strong

McKesson Corporation (NYSE:MCK) reaffirmed its commitment to continue buying back its owns shares, after it reported that revenues in the first quarter of its fiscal year (3 months to June 30) climbed to $27.5 billion, up from $26.7 billion in the same period last year.  First quarter earnings per share rose by 4 cents to $1.10 per share. McKesson Corporation is a healthcare services and information technology company.


"I am pleased to report that McKesson is off to a solid start for Fiscal 2011, driven by strong performance in our Distribution Solutions segment," said John H. Hammergren, chairman and chief executive officer. "Our results this quarter give us momentum for the remainder of our fiscal year, and we continue to expect that McKesson should earn between $4.72 and $4.92 per diluted share from continuing operations for the fiscal year ending March 31, 2011."


McKesson also confirmed that it would continue its current mandate to repurchase up to $1 billion in common stock.  The company purchased $531 million of its stock, and paid out $33 million in dividends to shareholders.  At the end of the first quarter the company had $3.3 billion in cash and generated $528 million in cash flow.


"With our strong balance sheet and significant cash flow, we have the flexibility to invest in our existing businesses, pursue strategic opportunities, continue to repurchase our shares, and pay dividends," Hammergren commented. "The breadth of our offering gives us the unique ability to provide our customers with solutions to meet the challenges in healthcare, which positions us very well for long-term growth."

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