Smith & Nephew posts fi...

August 7, 2008

Link http://www.bizjournals.com/memphis/stories/2008/08/04/daily35.html

Smith & Nephew PLC reported revenue of $1 billion for the fiscal second quarter ending June 28, a 23 percent increase compared to $813 million for the year-ago quarter. This is the company's first ever $1 billion quarter.

Based in London, Smith & Nephew (NYSE: SNN) is a global medical technology business with 8,800 employees worldwide. The company's orthopedic reconstruction, orthopedic trauma and clinical therapies divisions are based in Memphis.

For the second quarter, the company reported net income of $198 million, an increase of 18.6 percent compared to $167 million in the second quarter last year.

Revenues for the Memphis-based reconstruction unit grew by 8 percent to $396 million. Global hip revenues grew 7 percent in the quarter. While the 2-year-old Birmingham Hip Resurfacing System now has a 3.5 percent share of the total U.S. hip market, management said sales growth slowed a bit in the quarter on competitive pressures. U.S. knee revenues grew 12 percent in the quarter.

The trauma and clinical therapies division grew 5 percent in the quarter to $171 million.

Management said revenues in both units were strongly impacted by the purchase of the former Plus Orthopedics Holding AG. The purchase plunged second quarter revenues down an estimated $19 million and profits down by $9 million. The company said bringing Plus on board will cost $100 million in the next year.