Smith & Nephew plc (JOBS) Announces 3rd Quarter Results

LONDON--(Marketwire - November 06, 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 To view the full text of this press release, paste the following link into your web browser: http://www.rns-pdf.londonstockexchange.com/rns/0846C_1-2009-11-5.pdf This information is provided by RNS The company news service from the London Stock Exchange END