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Smith & Nephew boss plans a spending spree as profit surges

February 7, 2014


THE CHIEF executive of Smith & Nephew yesterday said that the medical equipment manufacturer will continue to invest in new growth opportunities in 2014, after posting an eight per cent rise in fourth-quarter profit.

"For the full year we generated good underlying revenue and trading profit growth and met our margin expectations," said Olivier Bohuon. "Looking to 2014, we will continue to invest where we see higher growth opportunities and focus on improving our efficiency."

Smith & Nephew saw a particularly strong performance from its orthopaedic reconstruction business in the fourth quarter, with 11 per cent growth in US knee implants. It also reported doubledigit growth in emerging and international markets, having completed acquisitions in Turkey, India and Brazil.

Full-year revenue rose four per cent to $4.35bn (2.66bn), while profit rose five per cent to $987m.

The London-listed firm expects to grow its profit margin in 2014.

Bohuon has been focusing on faster-growing markets and therapy areas, and on Monday said it had agreed to buy US sports medicine firm ArthroCare Corp for $1.7bn.

Shares closed up 2.5 per cent.

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Source: City A.M. (UK)

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