Smith & Nephew profits beat expectations

The company posted a seven percent rise in trading profit of $226m (143m) on revenue of $959m (606m), up four per cent, in the three months to the start of July.

Adjusted earnings per share of 17.1 cents, up 11 per cent, beat analyst expectations.

Medical device makers are under pressure from hospitals to cut prices, and results from US rivals Stryker, Zimmer and Johnson & Johnson last month raised concerns that orthopaedic markets may be slowing.

Smith & Nephew said there were "clear signs of progress" in orthopaedics in its US trauma and European businesses, but the US reconstruction market was challenging.

"Our customers are facing short-term budgetary pressures and challenges and our strategy is to be 'part of the solution'," said chief executive David Illingworth.

The group's Hull-based Advanced Wound Management division, which makes treatments for hard-to-heal wounds, outperformed the market with revenue growth of five per cent to $218m.

It said during the quarter, like-for-like pricing pressure increased slightly to around two per cent.

In the second half, Smith & Nephew said its orthopaedic business would benefit from new products.