Wound management the star for Smith

The company said underlying sales rose by nine per cent in the first quarter of the year.

The results were boosted by the advanced wound management business based in Hull, which outperformed the wider market with growth of 11 per cent.

The company, Europe's largest maker of replacement knees and hips, said earnings were helped by a one-off settlement.

Growth of 11 per cent in the advanced wound management division outperformed the market rate of four per cent. The division's US revenues grew by ten per cent, while European revenues grew by 12 per cent with a strong performance in the key UK, German and French businesses. The infection management product range grew revenues by seven per cent.

S&N said it had successfully launched its new port which received excellent customer feedback as it continues to focus on delivering new products.

It added that the advanced wound management division should continue to grow at above the market rate.

Chief executive David Illingworth said: "In orthopaedics, our US business performed well and our European orthopaedics business returned to growth for the first time in two years following significant improvements."

Smith & Nephew, which competes with US firms Stryker and Zimmer, has seen its products for younger, more active patients disproportionately hit by the global economic slowdown. "Market conditions in orthopaedics do seem to be stabilising, and although pricing pressure continues we are seeing some good mix benefit as a reward for our innovative higher specification products," said Mr Illingworth.

Seymour Pierce analyst Mike Mitchell, who has a 'buy' recommendation on the company, said Smith & Nephew posted a strong quarter.

"The performance comes in the context of the US reporting season which has indicated early signs of a rebound in the musculoskeletal industry, with Smith & Nephew benefiting from its focus on operational improvements," he said.

Smith & Nephew reported adjusted earnings per share of 18.8 cents, on revenue up nine per cent at $995m.