Smith & Nephew Q1 sales hit by China weakness

Artificial knee and hip maker Smith & Nephew posted a 3% rise in first-quarter revenue, as a solid performance in the US was offset by weakness in China.

For the quarter ended 2 April, revenue nudged up to $1.14bn from $1.10bn in the same period last year, which was below the $1.16bn expected by analysts. On an underlying basis, growth was 4%.

Revenue in the US grew 8%, but emerging markets saw a 6% decline, with double-digit growth in most countries offset by continued weakness in China and a significant slowdown in tendering and sales in oil-dependent Gulf States.

Established Markets saw revenue growth of 6%, which the company said reflected its success in the US and the sustained improvement it has made in Europe.

Revenue in Knee Implants was up 9%, boosted by strong sales of the Journey II Knee System, while Hip Implants saw 4% growth.

Chief executive officer Olivier Bohuon said: “Overall, we continue to expect good underlying revenue growth in 2016 as we benefit from our investments in existing businesses, acquisitions and pioneering technologies."