* Q4 sales 473 million Swiss francs, vs poll 487 million
* To buy back up to 5 percent of outstanding shares
* Sticks to dividend policy
* CEO Baehny to take on chairman's job too
* Shares down 6.8 percent
(Recasts, adds background on franc)
ZURICH, Jan 13 (Reuters) - The strong Swiss franc contributed to a 5.7 percent drop in fourth quarter sales at sanitary equipment maker Geberit, which disappointed analysts and sent its shares down nearly 7 percent.
Geberit, which makes toilet flushing systems, is the latest Swiss company to report a hit from the soaring currency, which the Swiss National Bank has said poses an enormous challenge to exporters.
Swiss business leaders have also warned about the impact of the strong currency.
Analysts have started to lower Swiss company forecasts due to the strong franc, which has been trading close to record highs against the euro and the dollar, as a result of the euro zone debt crisis.
Geberit, due to post full-year results on March 10, said on Thursday it expected a 2010 operating cashflow margin (EBITDA) of around 26 percent and net income and earnings per share at the previous year's level. This was cited as disappointing by one trader.
Another trader said the sales miss was disappointing as Geberit had consistently exceeded expectations.
Geberit announced a 5 percent share buyback programme for 2011-12 worth around 440 million francs ($453 million), which analysts said was expected. The company will keep its dividend policy unchanged.
Geberit also said Chief Executive Albert Baehny would stand for election to become chairman, taking over from Guenter Kelm who is retiring.
"Disappointing figures and indications. We also are not sure if the market likes CEO/chairman double mandates. The only bright spot is the share buyback programme," Kepler Capital Markets analyst Christoph Ladner said.
Geberit shares, which rose 18 percent last year, were down 6.8 percent at 201.90 francs by 1203 GMT, underperforming a 0.8 percent drop in the European construction sector index.
Geberit said fourth-quarter sales fell to 473 million francs, compared with a forecast for 487 million in a Reuters poll. (Reporting by Katie Reid; Editing by David Holmes and Dan Lalor and Jane Merriman) ($1 = 0.9711 Swiss franc)