Smith & Nephew hit by tough markets

'‹Smith & Nephew, Europe's biggest artificial hip and knee maker, reported a 7 per'‹ '‹cent drop in full-year trading profit, missing analysts' forecasts, as tough market conditions in China and Saudi Arabia '‹hit growth.
By The Newsroom
Published 9th Feb 2017, 09:30 BST
Updated 28th Feb 2017, 12:46 BST
Smith & Nephew's chief executive Olivier Bohuon said the company had delivered growth in 2016, but "not at the level we had wanted"Smith & Nephew's chief executive Olivier Bohuon said the company had delivered growth in 2016, but "not at the level we had wanted"
Smith & Nephew's chief executive Olivier Bohuon said the company had delivered growth in 2016, but "not at the level we had wanted"

The company reported ​a ​trading profit of ​£1​bn ​after​ revenue ​rose 2 per​ ​cent on an underlying basis​.

Chief Executive Olivier Bohuon said the company had delivered growth in 2016, but "not at the level we had wanted".

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"Market conditions in China and the Gulf states together shaved more than a percentage point of growth off the group in 2016," he said​.

He added that​ China returned to growth in the second half.

Smith & Nephew​, which employs around 900 people in Yorkshire,​​​ said it expect​s better growth in 2017, with underlying revenue ​expected to ​increas​e​ by 3​ to ​4 per​ ​cent.

Shares in the company, which also makes treatments for chronic wounds such as leg ulcers and pressure sores, fell 4 per​ ​cent to eight week lows of 1,143​p after the results.

Analysts at JP​ ​Morgan Cazenove said the midpoint of the guidance would lead to a 1.6 per​ ​cent downgrade in revenue consensus​.

They said the downgrades could see the shares trading nearer the ​£​11 level ​rather ​than ​£​12 in the short term.

Related topics:EuropeChinaSaudi Arabia