Smith & Nephew (FTSE:SN, NYSE:SNN) reported a 56% slide in 2nd-qaurter earnings on a 4% increase in sales.
The British medical device and wound care company posted profits of $129 million, or 14.2¢ per share, on sales of $1.07 billion for the 3 months ended June 29.
Adjusted to exclude 1-time items, earnings per share were 90¢, in-line with analysts’ expectations on Wall Street.
"The on-going implementation of our strategic priorities underpinned our performance in the quarter. We generated stand-out contributions from our areas of focused investment in the emerging and international markets and negative-pressure wound therapy. As expected orthopaedic reconstruction had a slow quarter and we anticipate a better 2nd half. Our major acquisition, Healthpoint Biotherapeutics, completed an excellent first 6 months as a Smith & Nephew business," CEO Olivier Bohuon said in prepared remarks. "Through the share buy-back programme and interim dividend we are delivering enhanced returns to our shareholders today. At the same time we continue to invest in the business, both for organic growth and enhancing our platform through agreed acquisitions in India, Brazil and now in Turkey. We are confident that our actions are reshaping the group for further success."
Smith & Nephew confirmed its outlook for the rest of the year, saying it expects its advanced wound management segment to "strongly out-perform," its trauma business to grow slightly, sports medicine to be in-line and orthopaedic reconstruction to be "below," according to a regulatory filing.
"We anticipate that the performance of orthopaedic reconstruction will improve in the 2nd half of the year," according to the filing.
SNN shares were trading at $56.93 apiece as of about 12:15 p.m. today, up 0.3%.