Smith & Nephew announces US$1bn quarterly sales

Medical firm Smith & Nephew has announced quarterly sales of US$1bn for the first time in its history. Reported revenue for the second quarter of the year was up 23 per cent, to US$1bn – around £514m – on the same period in 2007.

Trading profits for the firm, which employs around 1,000 people at its Advanced Wound Therapy division in Hull, were up 19 per cent to US$198m, just over £100m.

According to the firm, the results have been driven by strong performances across all its businesses. Sales in the firm's orthopaedic reconstruction division were up eight per cent to around £204m, and the trauma and clinical therapies business reported an underlying growth of five per cent, producing revenues of £88m.

Advanced Wound Therapies saw a nine per cent rise in revenues across its US and European operations. The performance resulted from the introduction of new products launched earlier this year and in 2007, including the firm's Negative Pressure Wound Therapy (NPWT).

Revenues for the company's European trading, which constitutes 80 per cent of its operations, was up 10 per cent like-for-like and the firm's US sales grew by three per cent.

In a statement, Smith & Nephew said: "We are pleased with our success in the early first phase of entering the NPWT market. Our presence is building in this US$1.4bn market (about £720m).

"We are now billing over 500 accounts for NPWT products. Revenues from both rental and sales are building globally and major contract wins have been realised in the US, Europe and Australia."

Smith & Nephew's second-quarter performance has contributed to strong half-year figures for the company. During the six months of the year up to June 28, group revenues grew by 23 per cent to more than US$1.9bn – nearly £984m. Reported half-year trading profits were up 21 per cent to more than £195m.

Source: Hull Daily Mail