UPDATE 1-Smith & Nephew picks new chairman as wound care boosts sales

Thu Oct 31, 2013 11:50am GMT

Quotes

   

* Roberto Quarta replaces John Buchanan as non-exec chairman

* Q3 revenue $1.03 billion vs consensus $1.02 billion

* Q3 adjusted EPS 17.1 cents vs consensus 17 cents

LONDON, Oct 31 (Reuters) - British medical devices group Smith & Nephew picked veteran industrialist Roberto Quarta as its new chairman on Thursday as it posted 5 percent higher quarterly sales, boosted by strong demand for wound care products.

Quarta, an Italian-American businessman now based in Britain, will join as a non-executive director on Dec. 4 and is slated to become chairman from next April, replacing John Buchanan who is stepping down after nine years.

He will be joining Smith & Nephew at an interesting time, since it is banking on new products to reinvigorate sales in replacement hips and knees.

Smith & Nephew has been trailing rivals like Johnson & Johnson, Zimmer and Stryker in orthopaedic reconstruction due to a relative lack of new products.

But Chief Executive Olivier Bohuon said the joint implant business was now improving, following successful new product introductions and increased investment.

The group posted revenue of $1.03 billion and adjusted earnings per share (EPSA) of 17.1 cents in the third quarter, while trading profit rose 10 percent to $222 million.

Analysts, on average, had forecast revenue of $1.02 billion and EPSA of 17 cents, according to Thomson Reuters.

Smith & Nephew maintained its outlook for the full year but said market conditions remained tough.

Quarta currently chairs IMI, Rexel and private equity firm Clayton, Dubilier & Rice Europe.