Smith & Nephew sees Q2 adjusted EPS rise 13%

1st Aug 2014 07:30

Medical devices manufacturer Smith & Nephew reported double-digit earnings growth in its second quarter, which its said was down to the rebalancing of the business towards higher growth markets.Adjusted earnings per share totalled 20.4 cents in the three months to 28 June, up 13% year-on-year. Trading profit increased 6% on an underlying basis to $255m.The company said results were driven by Sports Medicine Joint Repair, Trauma & Extremities and Orthopaedic Reconstruction, with growth rates "significant ahead of the previous quarter".Underlying revenues improved by 3%, but were up 7% at $1.147bn on a reported basis, as foreign exchange and acquisitions added 1% and 3% to the growth rate, respectively.The Advanced Surgical Devices division generated sales of $810m in the quarter, up 4% on an underlying basis, helped by strong growth in the US, emerging and international markets. However, the smaller Advanced Wound Management business saw flat revenues at $337m despite the global market growing 2%.For the half year as a whole, underlying trading profit was flat at $484m on revenues that improved 2% to $2.22bn."With half of our revenues now coming from higher growth markets, and a more focused structure, we are well placed to take advantage of the many further opportunities we see," said chief executive Olivier Bohuon.The interim dividend was lifted to 11 cents per share, from 10.4 cents the year before.BC