SOURCE: Smith & Nephew PLC

November 06, 2009 02:00 ET

Smith & Nephew Plc announces 3rd Quarter Results

LONDON--(Marketwire - November 6, 2009) -


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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