Despite weaker sales across all divisions, Smith & Nephew plc still managed to boost second-quarter profits by 15 percent by cutting costs and improving efficiencies.
The British medical device giant, which houses its endoscopy business unit in Andover reported $118 million in attributable profit for the three months ended June 27, compared to $198 million for the same period last year.
Overall, sales were down 7 percent across all divisions at $926 million for the quarter, compared to just over $1 billion for the same period last year.
The company’s local endoscopy division fared the worst, where sales dropped 9 percent during the quarter, falling to $187 million compared with $205 million for the same period last year. Company officials attributed the slide to the continuing slump in capital equipment sales, particularly of big-ticket imaging equipment, which was off 26 percent from last year’s pace.
However, the division still managed to deliver solid margins of around 23 percent, which the company attributed to the closing of a manufacturing site in Warsaw, Ind.
Going forward, the company also warned investors that it expects to see continued softness in products that serve younger markets, as the recession has forced many young people to delay surgical procedures out of cost concerns.