April 30 (Reuters) - UK medical products maker
Smith+Nephew 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.
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.