LONDON, Feb 6 (Reuters) - Smith & Nephew, Europe’s largest maker of artificial hips and knees, posted a 8 percent rise in fourth-quarter underlying trading profit, beating market expectations, as demand for its orthopaedic reconstruction products improved.
The company posted trading profit of $292 million on revenue of $1.18 billion, up 6 percent on an underlying basis, resulting in adjusted earnings per share of 23.4 cents.
Chief Executive Olivier Bohuon struck a $1.7 billion deal to buy U.S. sports medicine firm ArthroCare Corp on Monday in his biggest step yet in repositioning S&N in faster growing markets.
He said Smith & Nephew finished the year strongly. “Our Orthopaedic Reconstruction business confirmed its improved dynamic, in particular delivering 11 percent growth in U.S. knees,” he said.
For 2014, he said orthopaedic reconstruction would continue its recent improved performance, and he expected it to grow at approaching the market rate.
Analysts expected the British group to post trading profit of $287 million on revenue of $1,163 million, equating to adjusted earnings per share of 22.1 cents, according to a company-compiled consensus.