Smith and Nephew beats forecasts

HIP replacement maker Smith & Nephew today reported better-than-expected results following a strong performance from its knee and trauma units.
By The Newsroom
Published 10th Feb 2011, 10:51 BST

The Hull-based firm, whose shares have hit new highs recently following takeover speculation, announced that chief executive Dave Illingworth will step down on April 14 and will be replaced by Olivier Bohuon, former chief executive of pharmaceuticals firm Pierre Fabre.

Smith said trading profits increased by nine per cent to £173.1m in the final quarter of 2010 on flat revenues of £664.4m. The City had been expecting trading profits of around £156.9m.

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The company reported strong sales of knee replacements, key hole surgery products and advanced wound management treatments.

Today’s results made no mention of takeover bids despite rumours that Smith walked away from a £7bn offer from US pharmaceutical giant Johnson & Johnson before Christmas and that other rivals such as Zimmer and Stryker are also interested.

The strong final quarter results helped full-year revenues increase four per cent to £2466.9bn and an 11 per cent increase in trading profits to £603.3m.

Related topics:Hull