Smith & Nephew, a global medical device manufacturer, posted a 2.3 percent decrease in profits for the fourth quarter. According to information from the company, Smith & Nephew has been dealing with a reduced demand for its reconstruction tech. In addition, the company is currently undergoing a realignment of its core business.
For the fourth quarter, total revenue dropped $1.08 billion, representing a 2.6 percent decrease. Smith & Nephew also showed a 4.6 percent drop in its Advanced Surgical Devices division.
When the company spun off its biologics business, profits were dragged down to $272 million. The company's hip implant business decreased approximately two percent over the last fiscal year. Pricing pressures from other medtech companies also caused issues for Smith & Nephew. Due to increased pricing competition, sales of the company's knee, hip and trauma devices dropped two percent.
While there has been lots of bad financial news for Smith & Nephew in recent months, some of its divisions are still doing well. The company's wound care division experienced a four percent increase this quarter, yielding revenues of $280 million. These figures don't include the financial contribution of Healthpoint, a business the company acquired in December of last year. In 2012, Healthpoint grossed a total of $190 million.