Profile image
By ProactiveInvestors (Reporter)
Contributor profile | More stories
Story Views

Last Hour:
Last 24 Hours:

Tough market conditions in China and the Gulf States weigh as Smith & Nephew’s 2016 profits miss forecasts

Thursday, February 9, 2017 3:31
% of readers think this story is Fact. Add your two cents.

Europe’s biggest artificial hip and knee maker, Smith & Nephew PLC (LON:SN.) saw its 2016 trading profits miss forecasts weighed by tough market conditions in China and the Gulf States.

The FTSE 100-listed firm posted trading profits of US$1.020bn for the full-year to December 31, down 7% from 2015’s US$1.099bn, on revenues 1% higher at US$4.67bn.

Analysts were expecting the company to report trading profits of US$1.04bn and revenues of US$4.69bn.

Olivier Bohuon, Smith & Nephew’s chief executive officer, said: “Market conditions in China and the Gulf States together shaved more than a percentage point of growth off the group in 2016.”

But, he added: “ China returned to growth in the second half, as did the Emerging Markets as a whole,”

Smith & Nephew said it expected stronger revenue growth in 2017, with underlying revenues seen increasing by 3-4% and trading profit margin increasing by 20-70 points.

Bohuon added: “I am confident we now have the right structure and capability in place and are focused on improving execution across the group, with a clear set of actions underway.

“Beyond this, with our innovative products and deep customer relationships, we are well set to deliver a stronger performance generating higher revenue growth and a better trading profit margin in the future.”

The firm plans to pay a final dividend of 18.5 US cents, taking its full-year dividend to 30.8 US cents, unchanged on the previous year.

In early trading, Smith & Nephew shares topped the FTSE 100 fallers list, down 4.4%, or 53p at 1,148p.

 – Adds share price –

Story by ProactiveInvestors


We encourage you to Share our Reports, Analyses, Breaking News and Videos. Simply Click your Favorite Social Media Button and Share.

Report abuse


Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories



Top Global

Top Alternative




Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.