Citing weak global markets, Smith & Nephew PLC reported a 5 percent decline in revenues for the first quarter of 2009, falling from $911 million in the year-ago quarter to $865 million. However, earnings rose from 9 cents per share to 11 cents per share. Profits before taxes fell 13.7 percent from $146 million in first-quarter 2008 to $126 million this year. Revenues for Smith & Nephew’s Memphis-based orthopedics division fell to $508 million from $528 million in the same quarter last year. This was due to some softening in the global market.
The company reported sales fell 2 percent in Europe, but grew 3 percent in the U.S. and grew 16 percent in the rest of the world. Knee replacement sales grew 5 percent, according to the company, and hip sales rose 2 percent.
“Our businesses are proving resilient, but not immune to the weak global economy,” Smith & Nephew CEO David Illingworth said in a statement. Smith & Nephew’s stock closed Thursday down 1.4 percent, to $35.05 per share.
London-based Smith & Nephew’s Orthopaedic Reconstruction and Trauma and Clinical Therapies units are based in Memphis and employ 1,815.
Source: Memphis Business Journal