London, UK--(Marketwire - November 1, 2007) - Smith & Nephew Q3 Results - continued revenue growth and margin improvement
1 November 2007
Smith & Nephew plc (LSE: SN, NYSE: SNN), the global medical technology business, announces its results for the third quarter ended 29 September 2007.
3 months to 29 September 07 9 months to 29 September 07
$m underlying reported $m underlying reported
increase increase/ increase increase/
% (decrease)% increase % (decrease)%
Revenue 1 845 10 24 2,402 11 20
Trading
profit 2 169 19 28 484 18 25
EPS (cents)3 1.6 - (84) 23.1 - (64)
EPSA(cents)4 11.8 - 16 35.4 - 18
Business Unit
Revenue 1
Orthopaedic
- Recon-
struction 313 11 43 866 14 30
- Trauma
& CT 156 11 21 442 15 20
Endoscopy 176 9 12 531 11 14
Advanced
Wound
Management 200 8 15 563 5 11
Q3 commentary
- Orthopaedic Reconstruction delivers above market global growth driven
by hip revenues
- Orthopaedic Trauma performance benefiting from excellent volume growth
- Endoscopy generates strong growth led by revenues outside the US which
grew by 17%
- Advanced Wound Management sustains revenue growth momentum with
improved performance both inside and outside the US
- Earnings Improvement Programme on target for continued margin
improvement
- Integration of Plus Orthopedics and BlueSky progressing well
Commenting on the third quarter, David Illingworth, Chief Executive of Smith & Nephew, said:
"Despite market pressures in some areas, the third quarter has seen us deliver continued good revenue growth across the business, through our innovative product portfolio and the increased effectiveness of our sales force. Our focus on the high growth segments in our markets is bearing fruit and generating profitable growth.
We continue to identify good quality opportunities both internally and
externally. We are changing our internal structure to increase our customer focus and operating effectiveness for the long term. The ongoing work on our Earnings Improvement Programme is building a solid platform for sustained margin improvement."
Analyst presentation
An analyst conference call to discuss the Company's third quarter results will be held at 12.30pm GMT/ 8.30am EST today, Thursday 1 November. This will be a live webcast on the Smith & Nephew website at
http://www.smith-nephew.com. An on demand replay will be available shortly following the close of the call at http://www.smith-nephew.com/Q307. A podcast will also be available at the same address. If interested parties are unable to connect to the web, a listen-only service is available by calling +44 (0)20 7806 1955 in the UK or +1 718 354 1389 in the US. Analysts should contact Julie Allen on +44 (0)20 7960 2254 or by email at
julie.allen@smith-nephew.com for conference details.
Notes
1 Unless otherwise specified as 'reported', all revenue increases
throughout this document are underlying increases after adjusting for
the effects of currency translation and acquisitions. See note 3 to
the financial statements for a reconciliation of these measures to
results reported under IFRS.
2 Underlying increase in trading profit is the increase in trading
profit after adjusting for the effects of currency translation and
acquisitions.
3 The EPS for the nine months in the comparable period included 35.3
cents from the gain on sale of BSN Medical.
4 EPSA growth is reported, not underlying, and is stated before
restructuring and rationalisation costs, acquisition related costs,
the legal settlement with the US Department of Justice, amortisation
of acquisition intangibles and taxation thereon, and in 2006 the gain
on the disposal of the joint venture and the related fair value
adjustment. See note 2 to the financial statements.
5 Percentage of new products to revenues is based on products launched
within the last three years.
6 Comparisons are against restated numbers, see note 1 to the financial
statements.
Enquiries
Investors
Adrian Hennah +44 (0) 20 7401 7646
Chief Financial Officer
Smith & Nephew
Liz Hewitt +44 (0) 20 7401 7646
Group Director Corporate Affairs
Smith & Nephew
Media
Jon Coles +44 (0) 20 7404 5959
Justine McIlroy
Brunswick - London
Cindy Leggett-Flynn +1 (212) 333 3810
Brunswick - New York
To view the full text of this press release, click on the following link:
http://www.rns-pdf.londonstockexchange.com/rns/7891g_-2007-11-1.pdf
This information is provided by RNS
The company news service from the London Stock Exchange