Smith & Nephew PLC (NYSE:SNN) is experiencing some hip problems, but it has nothing to do with the 154 year old company’s age.
The British orthopedics giant said soft sales of its hip products contributed to shrinking sales in the U.S. market as the recession continues to push people towards delaying elective orthopedic surgical procedures, according to company CEO David Illingworth.
For the three month period ended July 3, the company posted a $137 million profit on $959 million in sales, a 16 percent jump from the $118 million profit on $926 million in sales for the same period last year.
For the six month period, the company reported a $296 million profit on $1.95 billion in sales, a 37 percent jump from the $216 million profit on $1.79 billion in sales from the comparable period last year.
The company’s orthopedic division led the way with $535 million in global sales, up slightly from the $531 million the company posted during the comparable period last year.
Sales in the U.S., the company’s largest market, contracted by about 1 percent to $287 million, based on pricing pressures from the poor economy and a 3 percent drop in sales of hip products. The downturn was partially offset by modest growth in sales to both the EU and rest of the world.
Meanwhile, Smith&Nephew’s endoscopy division, headquartered in Andover, Mass., jumped by 10 percent to $206 million.
The company’s wound management business also shows positive signs, posting sales of $218 million, a 5 percent jump from the same period last year. The division posted a 15 percent profit based on savings from moving its manufacturing facilities to China.
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