(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.
(Reporting by Yamini Kalia in Bengaluru; Editing by Sherry Jacob-Phillips and Savio D’Souza)
