Smith & Nephew reiterates annual guidance but warns of currency headwinds

30th Apr 2015 08:08

Medical services group Smith & Nephew reported a slight increase in first quarter revenue and reiterated its expectations for 2015.However, the FTSE 100 group said the strong dollar weighed on its performances in the first three months of the year, estimating a hit of approximately 8%, and warned it will face "significant currency headwind" in 2015.In the three months to 28 March, Smith & Nephew recorded a 3% rise in revenue from the year before to $1.10bn (£710m), as strong revenue in emerging markets offset sluggish growth in the US and Europe.The London-listed company said its sports medicine joint repair division reported a 16% increase in revenue from the corresponding period in 2014, boosted by new product launches and by the integration of ArthoCare.In a statement released on Thursday, Smith & Nephew said it expected profitability to be "significantly stronger" in the second half but it warned of a 7% currency hit to revenue for the full year."We are pleased with our start to 2015 and are on track to make further progress during the year," said group chief executive Olivier Bohuon.Smith & Nephew shares were down 0.18% to 1,120.00p at 08:30 on Thursday.