30th Oct 2014 12:09
LONDON (Alliance News) - Smith & Nephew PLC Thursday said its outlook for the year remains unchanged, after it reported higher trading profit and revenue in the third quarter, buoyed by growth in sports medicine joint repair, wound bioactives and its emerging market business.
The medical devices maker reported a trading profit of USD246 million for the three months to September 27, up from USD222 million a year earlier, as revenue rose to USD1.15 billion, from USD1.03 billion, but its trading profit margin fell slightly to 21.4%, from 21.6%.
"We are delivering on our strategy to rebalance Smith & Nephew by strengthening our higher growth platforms, which currently represent more than half the business, up from just 35% three years ago. Sports Medicine Joint Repair and Advanced Wound Bioactives both produced double-digit growth in the quarter, and the emerging markets business increased revenue by 20%," Chief Executive Olivier Bohuon said in a statement.
The company's adjusted earnings per share rose to 19.5 cents, from 17.1 cents a year earlier.
However, its pretax profit fell to USD153 million in the third quarter, from USD178 million a year earlier, as administrative costs and research and development expenses all rose. Basic earnings per share declined to 11.4 cents, from 13.6 cents.
Smith & Nephew shares were up 0.5% at 1,023.00 pence in the wake of the results.
By Steve McGrath; [email protected]; @stevemcgrath1
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