Colgate-Palmolive authorises share repurchase scheme

Colgate-Palmolive has announced a major new share repurchase programme that will be conducted over the coming years.

The dental supplies manufacturer's board of directors has authorised a scheme that will provide for the repurchasing of up to 50 million shares of common stock, either through the open market or via privately negotiated transactions.

As of June 30th 2011, the company's total number of shares of common stock outstanding came to 486 million, with the new repurchase scheme to take place over the next two to three years.

Ian Cook, chairman, president and chief executive officer of Colgate-Palmolive, said the launch of the scheme reflects the firm's positive business outlook at present.

It comes after the company saw a 9.5 percent year-on-year increase in net sales in the second quarter of 2011, while growing its share of the toothbrush and toothpaste sectors to record levels.

"We are pleased that our excellent cash generation worldwide will enable us to maintain our strong balance sheet and launch a new share repurchase programme," explained Mr Cook.