Smiths Group shares fall on missed forecast

Smiths Medical parent company Smiths Group (LON:SMIN) saw shares fall more than 5% today after reporting a fall in underlying full-year revenue due to weaknesses in its medical device unit and energy equipment and service businesses. The fall made the company the worst performer on the London Stock Exchange’s FTSE 100 Index today. Smiths Medical was faced with delays in its new product releases, seeing revenues decline 3% for the year at $1.28 billion (GBP £951 million), while analysts on Wall Street expected to see revenues of $1.3 billion (GBP £962 million). Overall, the company’s revenue grew 11% to $4.44 billion (GBP £3.28 billion) over the prior year, which was aided by a weaker pound as it sells internationally. “Smiths has made good progress this year as we continue to execute our strategy for sustainable growth. We are well underway in repositioning the business through organic and inorganic investment with approximately 75% of the Group now well positioned in attractive markets. The disposal of four non-core businesses and the acquisition of Morpho Detection has supported the significant upgrading of the portfolio as we increasingly focus on scalable, technology-differentiated leadership positions in our chosen markets. Underlying revenue was broadly in line with the prior year, with growth across the portfolio offset by John Crane’s oil & gas business and in Smiths Medical due to market challenges in John Crane and a delay in some new product la...
Source: Mass Device - Category: Medical Devices Authors: Tags: Business/Financial News MassDevice Earnings Roundup Smiths Group plc Smiths Medical Source Type: news