Smith & Nephew Stock Dips As H1 Profit Down, Despite Higher Revenues

(RTTNews) - Medical technology company Smith & Nephew Plc (SN.L, SNN) Thursday reported that its first-half profit before tax declined to $327 million from last year's $411 million.

Earnings per share were 27 cents, down from 33 cents last year. Trading pre-tax profit was $453 million, compared to $481 million a year ago.

Adjusted attributable profit was $334 million, compared to $350 million last year.

Revenue for the first half increased 2 percent to $2.328 billion from last year's $2.272 billion. Revenues increased 3% on an underlying basis, led by 10% growth in Sports Medicine Joint Repair.

In the second quarter, revenues were $1.191 billion, 2 percent higher than last year. Revenue growth WAS 3% in the Established Markets, with US up 4%.

Further, the company announced an interim dividend of 12.3 cents per share, higher than last year's 11.8 cents.

Looking ahead, for the second half, the company said it expects the positive trends in Reconstruction and Sports Medicine to continue, and a partial improvement in China, somewhat offset by ongoing weak conditions in the Gulf States.

Second half trading profit margin is expected to exceed that delivered in the first half, although held back by negative operational gearing resulting from the slower than anticipated sales growth mainly in the Emerging Markets.

In London, the shares are currently trading at 1,235.64 pence, down 4.95 percent.