Smiths Group Posts Drop In Full-Year Profit

Smiths Group PLC SMGZY reported a drop in its full-year profit. Smiths Group posted a full-year net profit of 232.8 million pounds ($377.8 million), versus a year-ago profit of GBP315 million. Earnings per share declined to 58.4 pence, compared to 79.3 pence. The company's profit before taxation shrank to 302.0 million pounds, versus 395.7 million pounds. Operating profit on a statutory basis tumbled to 378 million pounds from 486 million pounds, while headline earnings per share declined to 81.0 pence from 91.7 pence. Its revenue dropped to GBP2.95 billion versus GBP3.11 billion. Smiths Group raised its dividend by 2% to 40.25 pence. Chief Executive Philip Bowman said, “Looking ahead, we remain well-placed to benefit from growth in energy demand, the need for new fuel-efficient aircraft, increased US residential construction and investment in wireless networks. However, we remain cautious about sectors such as healthcare, homeland security and defence, which are subject to government funding constraints, although there are signs that the defence market is beginning to stabilise.” Smiths Group shares fell 0.54% to close at $22.10 yesterday.