GO
Loading...

Covidien CEO Says Company Focused on Internal Growth

Tuesday, 10 Jul 2007 | 1:45 PM ET

Covidien, formerly Tyco Healthcare, began trading last Thursday after being spun off from Tyco International. Covidien President and Chief Executive Rich Meelia joined “Squawk on the Street” to discuss his future plans and goals for the healthcare products maker.

Tyco Healthcare Split
Formerly Tyco Healthcare, Covidien began trading last Thursday. Insight with Rich Meelia, Covidien president & CEO and CNBC's Mark Haines

“When we announced the separation (from Tyco International) about 18 months ago, we knew then that we would have the freedom to be able to be a little bit more aggressive with the management of the portfolio,” said Meelia. “As an independent healthcare company, we’ll be making investments that are appropriate, and we can work with the board to focus strictly on healthcare.”

Although the company will no longer be part of the much-larger Tyco, which has $43 billion in assets, Covidien pockets will be sufficiently deep, Meelia said. He expects the company to have a "very strong" balance sheet and to generate "strong" cash flows.

However, Covidien will be focused more on internal growth than making new acquisitions, he said.

“Our whole goal is to manage this diverse portfolio, which we think is a real asset for us, in a way that brings in elements that will increase returns on our investment capital,” he said.

  Price   Change %Change
TYC
---

Featured

Contact

  • Showtimes

    United States
    Monday - Friday 9a ET
    Europe
    Monday - Friday 15:00 CET
    Asia
    Monday - Friday 21:00 SIN/HK
    Australia
    Monday - Friday 23:00 SYD
    New Zealand
    Tuesday - Saturday 01:00 NZ
  • Carl Quintanilla is an Emmy-winning reporter and co-anchor of CNBC's "Squawk on the Street," broadcast live from the NYSE.

  • Simon Hobbs co-anchors the 10 a.m. hour of CNBC's "Squawk on the Street" live from the New York Stock Exchange.

  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

  • Co-anchor of CNBC's "Squawk on the Street," David Faber also is a co-producer of CNBC's original documentaries.

  • Rick Santelli joined CNBC Business News as an on-air editor in 1999, reporting live from the floor of the Chicago Board of Trade.