4th Feb 2016 07:46
LONDON (Alliance News) - Medical devices maker Smith & Nephew reported a fall in pretax profit for 2015 on higher costs, but saw earnings per share come in ahead of both 2014 and market expectations.
Smith & Nephew reported a pretax profit of USD559 million for 2015, down from USD714 million a year before, as a rise in revenue to USD4.63 billion from USD4.62 billion, was offset by higher selling, general and administrative costs. The company said it has taken an accounting charge of USD203 million in relation to settlements for legal claims related to metal-on-metal hip replacements.
It reported full year earnings per share of 85.1 cents, up from 83.2 cents a year before, and ahead of the 83.5 cents expected by analysts.
The company said it would have expected its trading profit margin to exceed 24% in 2016, even including a 60 basis points dilution from investing in its acquisition Blue Belt Technologies. However, its margin will be reduced by a "significant" 120 basis points headwind from exchange rates, it said.
Smith & Nephew proposed a final dividend of 19.0 cents per share, which takes its full-year dividend to 30.8 cents, up 4% from the 29.6 cents it paid in 2014.
"We expect to deliver continued good underlying revenue growth in 2016 as we benefit from our investments in existing businesses, acquisitions and pioneering technologies," said Chief Executive Officer Olivier Bohuon in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Smith & Nephew