Smith & Nephew Q3 Results - continued strong profit performance
6 November 2009
Smith & Nephew plc (LSE: SN, NYSE: SNN), the global medical technology
business, announces its results for the third quarter ended 26
September 2009.
3 months* to 9 months to
27 27
26 Sept Sept Underlying 26 Sept Sept Underlying
2009 2008 increase 2009 2008 increase
USDm USDm % USDm USDm %
Revenue1 915 930 1 2,706 2,841 2
Trading profit2 208 174 22 603 554 17
Operating profit2 186 135 534 451
Trading margin (%) 22.8 18.7 410 bps 22.3 19.5 280 bps
EPSA (cents)3 16.8 12.2 45.3 39.0
EPS (cents) 14.5 8.4 39.0 29.3
Business Unit
revenue1
Orthopaedics 503 513 0 1,542 1,608 1
Endoscopy 195 195 1 561 594 0
Advanced Wound
Management 217 222 3 603 639 5
* Q3 2009 comprises 63 trading days (2008 - 63 trading days)
Q3 Commentary
. Reported revenue USD915 million, underlying growth of 1%
. Reported trading profit USD208 million, up 22% underlying
. EPSA increased 38% to 16.8 cents, partly benefiting from a lower
estimated tax rate
. In Orthopaedics an improved Reconstruction performance was off-set
by weaker Trauma
. Endoscopy continues to achieve strong repair sales while capital
equipment related markets remain soft
. Advanced Wound Management delivered another strong European growth
performance at 8%
. Trading margin improved 410 basis points to 22.8%
Commenting on the third quarter, David Illingworth, Chief Executive of
Smith & Nephew, said:"We achieved a 22% growth in our trading profit at
constant currency as
our focus on operational efficiency continues to deliver. We are
encouraged by improvements in some key parts of our business, including
US Reconstruction, arthroscopic repair and Negative Pressure Wound
Therapy, together with continued strength in our European Advanced
Wound Management and European Endoscopy businesses and our growth from
emerging markets.
Market conditions remain challenging, but are showing some early signs
of stabilising. We continue to invest in new products and medical
education programmes and we are well positioned as market conditions
improve."
Analyst conference call
An analyst conference call to discuss Smith & Nephew's third quarter
results will be held at 8:30am GMT/3:30am EST today, Friday, 6
November. This will be broadcast live on the company's website and will
be available on demand shortly after the close of the call at http://
www.smith-nephew.com/Q309. A podcast will also be available at the same
address. If interested parties are unable to connect to the web, a
listen-only service is available by calling +44 (0) 208 322 2048 in
the UK or +1 866 432 7175 in the US. Analysts should contact Sarah
Halestrap on +44 (0) 20 7960 2257 or by email
at sarah.halestrap@smith-nephew.com for conference details.
Notes
1 Unless otherwise specified as 'reported', all revenue increases/
decreases throughout this document are underlying increases/decreases
after adjusting for the effects of currency translation. See note 3
to the financial statements for a reconciliation of these measures to
results reported under IFRS.
2 A reconciliation from operating profit to trading profit is given in
note 4 to the financial statements. The underlying increase in
trading profit is the increase in trading profit after adjusting for
the effects of currency translation and acquisitions.
3 Adjusted earnings per ordinary share ("EPSA") growth is as reported,
not underlying, and is stated before restructuring and
rationalisation costs, acquisition related costs, amortisation and
impairment of acquisition intangibles and taxation thereon. See note
2 to the financial statements.
4 All numbers given are for the quarter ended 26 September 2009 unless
stated otherwise.
Enquiries
Investors +44 (0) 20 7401 7646
Liz Hewitt
Phil Cowdy
Smith & Nephew
Media
Jon Coles +44 (0) 20 7404 5959
Justine McIlroy
Brunswick - London
Cindy Leggett-Flynn +1 (212) 333 3810
Brunswick - New York
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