Smith & Nephew beats forecasts

GROWTH in endoscopy and wound care lifted Smith & Nephew profits above forecasts, offsetting a squeeze on sales of joint replacement parts as health services cut budgets and private patients defer surgery.

Europe's largest manufacturer of replacement knees and hips posted a 7 per cent rise in second-quarter trading profit to $226 million (143m) on revenue of $959m, up 4 per cent.

It said there were "clear signs of progress" in orthopaedics in its US trauma and European businesses, but the US reconstruction market, where it focuses on high-performance products for younger, more active patients, was challenging.

Chief executive David Illingworth said: "In reconstruction, while our US business saw stable revenue there were was a slight increase in pricing pressure."