Smith & Nephew Fiscal Year Sales Seen Down $100 Million

Tag : sn 100

By Jason Douglas
OF DOW JONES NEWSWIRES


LONDON -(Dow Jones)- U.K. medical technology firm Smith &Nephew PLC (SN.LN) warned Thursday full year revenues will be $100million lower than expected after it uncovered "unacceptbale" salespractices at its Plus Orthopedics subsidiary.

London-based Smith & Nephew said said it's expecting a 70%reduction in revenue at its reconstruction business, and 30% at itstrauma unit.

"Although this has been a challenging quarter in parts of ourbusiness in Europe, we have taken firm action and we are confidentthat the overall business is in a strong position for continuedstrong sustainable profitable growth," said Chief Executive DavidIllingworth in a statement.

The world's fourth largest maker of medical devices Thursdayreported operating profit rose 12% to $142 million for the quarterended March 28, compared to $127 million a year earlier.

Revenue rose 22% to $911 million, compared to $744 million a yearearlier.

Shares in the company fell on the news and at 1015 GMT were down4.5% or 30 pence at 625 pence in a flat London market. The stockwas up 0.9% year-on-year.

Company Web site: http://www.smith-nephew.com

-By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272;jason.douglas@dowjones.com

(END) Dow Jones Newswires

May 01, 2008 06:34 ET (10:34 GMT)