Smith & Nephew beats forecasts as growth picks up in Q4

6th Feb 2014 07:59

- Fourth-quarter revenues and profits exceed estimates- US, emerging markets drive growth- CEO gives confident outlook for 2014Medical equipment manufacturer Smith & Nephew beat analysts' forecasts as it registered a strong end to 2013 with underlying revenue growth picking up in the fourth quarter.The company, which is the largest maker of artificial hips and knees in Europe, reported underlying revenues in the three months to December 31st rose by 6% to $1.18bn, compared with 5% growth the preceding quarter.It said that a 9% revenue increase in the US offset subdued conditions in Other Established Markets where growth was just 1% with Europe remaining "challenging". Emerging and International Markets, meanwhile, continued their strong performance with revenues growing by 16%.Group trading profit for the quarter was $292m, up 8% on an underlying basis from last year.Analysts had pencilled in a fourth-quarter trading profit of $287m on revenues of $1.16bn.For the whole of 2013, the firm recorded 5% underlying growth in trading profit to $987m on revenues that rose 4% to $4.35bn.Full-year profit before tax, however, slipped to $802m from $1.1bn in 2012. This was due to costs associated with the acquisition of Healthpoint Biotherapeutics, while the prior year benefitted from a profit on disposal of the group's Clinical Therapies business. The result was that reported basic earnings per share reduced to 61.7 cents in 2013, from 80.4 cents previously.Nevertheless, Smith & Nephew declared a final dividend of 17 cents a share, lifting the full-year payout to 27.4 cents, up 5% year-on-year."Looking to 2014, we will continue to invest where we see higher growth opportunities and focus on improving our efficiency," said Chief Executive Olivier Bohuon."We built momentum across the group through 2013 and expect to make further progress in the year ahead."The stock was up 1.66% at 889p in early trading on Thursday.BC