Columbia Sets Restructuring Timetable, Plans Stock Buyback
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NASHVILLE — Columbia/HCA Healthcare Corp., the world’s largest health-care company, on Wednesday disclosed a corporate restructuring timetable, set a big stock buyback and posted quarterly results in line with forecasts.
The Nashville-based company also said it will probably change its name, though not soon. It said it expects continued “substantial costs” from restructuring and a massive Medicare fraud probe the federal government began 18 months ago.
Columbia also said it expects cash proceeds on asset divestitures this year of more than $3 billion, and about $1 billion next year, after spinning off 65 of its 309 hospitals.
Moving to support its listless stock price, the company also said it will spend up to $1 billion to buy back shares. At current prices, that would represent about 5% of its $19-billion market capitalization.
Columbia reported second-quarter earnings from continuing operations of $191 million, or 30 cents a diluted share, excluding costs tied to restructuring and the probe.
The results matched expectations of Wall Street analysts and was well below the year-ago level of $385 million, or 58 cents a share.
Revenue from continuing operations was $4.8 billion for the quarter, roughly flat compared with a year ago.
Columbia shares rose $1.13 to close at $30.06 in New York Stock Exchange trading.
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