UK's Smith+Nephew backs 2025 outlook despite likely tariff impact
April 30 (Reuters) - UK medical products maker Smith+Nephew (SN.L), opens new tab on Wednesday maintained its full-year sales and profit margin forecasts, but cautioned that it would likely take a hit due to U.S. tariffs.
The company, which makes orthopaedic implants, prosthetics, wound dressings and other surgical aids, reported first-quarter sales that were largely in line with analysts' expectations.
Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here.
The London-based firm said revenue increased 1.6% to $1.41 billion in the quarter, weighed by weak demand in China. It expects full-year underlying revenue growth of around 5%, with trading profit margin to be in the range of 19% to 20%.
That equates to full-year revenue of about $6.06 billion, according to company-compiled estimates, with just over half coming from the United States.
While two-thirds of Smith+Nephew's U.S. sales come from locally made products, the company said it still expects a tariff-related net impact of $15 million to $20 million this year. It did not specify if the hit would be to sales or profit.
It said it is working to mitigate the impact through various measures including adjusting its supply routes and changing the mix of products.
One of its main manufacturing sites for its " wounds division" is in Suzhou, China.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
21 minutes ago
- Reuters
US, China set for second day of trade talks in London
Top U.S. and Chinese officials will resume trade talks for a second day in London on Tuesday, hoping to secure a breakthrough over export controls for goods such as rare earths that have threatened a global supply chain shock and slower economic growth. Julian Satterthwaite reports.
Telegraph
25 minutes ago
- Telegraph
The best cure for low prices is low prices. This miner is set to benefit
Questor is The Telegraph's stock-picking column, helping you decode the markets and offering insights on where to invest. Investors are still not quite sure what to make of the turnaround plan at miner Anglo American, with the shares no higher than they were in late 2021, but the demerger of Valterra Platinum offers the latest pause for thought. Valterra's shares trade in Johannesburg and London and the timing of the spin-off could be interesting since platinum prices stand at a three-year high and the CRB Commodities index is making a good go of testing its loftiest level since 2011. We remain interested in Anglo American on the basis that the proposed restructuring should reduce debt, simplify the group structure and leave the FTSE 100 constituent as a more focused play on copper, iron ore, nickel and phosphates. In addition, the valuation does not look demanding relative to the company's book, or net asset, value per share. Potential future catalysts to unlock that value could be the proposed sale or flotation of diamonds specialist De Beers, further debt reduction and any hint of further advances in commodity prices, a trend that could result from China's efforts to stimulate its economy, American determination to foster growth, or safe haven buying of real assets if inflation rears its head once more. Anglo American retains a near-20pc stake in Valterra after a deal which saw investors get 110 shares in the leading producer of platinum group metals (PGM) for every 1,075 they held in the parent.
Reuters
2 hours ago
- Reuters
Trump: China talks ‘doing well', getting 'good reports'
U.S. President Donald Trump said on Monday (June 9) that his administration was doing well and that he was getting good reports as U.S. officials hold trade talks with China in London.
