Smith & Nephew rises on better-than-expected results, announces layoffs

February 2, 2012 by MassDevice staff

Smith & Nephew shares rise after the medical products giant posts better-then-expected results for the 4th quarter and full year, as the company says it plans to lay off 7% of its global workforce.

Smith & Nephew

Smith & Nephew (NYSE:SNN) is up about 4% on Wall Street this morning after reporting stronger-than-expected results for the 4th quarter and full year.

The British medical products giant posted profits of $279 million, or 16 cents per share, on sales of $1.12 billion for the 3 months ended Dec. 31, 2011. That's a 3.7% addition to the top line, although profits were flat at a 0.4% gain, compared with profits of $278 million, or 21 cents per share, on sales of $1.07 billion during the same period in 2010.

For the full year, profits were $961 million, or 65 cents EPS, on sales of $4.27 billion, down 0.8% and up 7.8%, respectively, compared with profits of $969 million, or 69 cents EPS, on sales of $3.96 billion during 2010.

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The news sent SNN shares up 4.3%, to $50.55, on The Street this morning. In London, Smith & Nephew shares had gained 4.6%, rising to £6.41, as of about 3:40 p.m. local time.

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