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Investors in Smith & Nephew were left reeling after the orthopedic company cut its full-year sales guidance due to weaker-than-expected operations in China.
The FTSE 100-listed company now anticipates full-year sales growth of 4.5 per cent, not 5 to 6 per cent. Sales in the third quarter rose 4 per cent (or 5.9 per cent excluding China) to £1.1bn.
It also dramatically revised its full-year profit margin target for 2024. It now anticipates growth of up to 0.5 percent for the year, not 18 percent.
Review: Smith & Nephew anticipates full-year sales growth of 4.5%, not 5% to 6%. Sales in the third quarter rose 4% (or 5.9% excluding China) to £1.1bn.
Beijing’s “value-based procurement” program has reduced prices for surgical products without increasing sales volumes. Smith & Nephew led the list of FTSE 100 losers, falling 12.5 per cent, or 137p, to 961p.
The UK’s two main stock indices fell as investors digested a mix of corporate news and pondered the implications of the Budget.
The FTSE 100 closed down 0.6 per cent, or 49.5 points, at 8,110, while the FTSE 250 closed down 1.5 per cent, or 305 points, at 20,389.
Packaging company DS Smith was the biggest riser on the FTSE 100, jumping 14.3 per cent, or 68.1p higher, to 545.5p, as US suitor International Paper reported higher third-quarter results than expected and said it expected the acquisition to close early in the first quarter. of 2025.
Coca-Cola HBC rose 1.6 per cent, or 42p, to 2,710p as it raised its full-year outlook after a strong performance so far this year.
Anglo American bounced back when BHP issued a statement to clarify that it had not officially abandoned its pursuit of its mining peer following comments made by BHP chairman Ken MacKenzie at the company’s annual meeting earlier this week.
Anglo American gained 0.6 per cent, or 14.5 pence, to 2,400 pence, while BHP fell 1.3 per cent, or 29 pence, to 2,152 pence.
NatWest held steady at 367.7p, even as the Government sold more of its stake in the rescued lender, taking its stake below 15 per cent.
Ocado fell 0.6 per cent, or 2.10 pence, to 347.90 pence, as the online grocer confirmed it was appointing former Microsoft executive Adam Warby to replace chairman Rick Haythornthwaite, who announced his resignation six years ago. months.
And Vodafone lost 0.5 per cent, or 0.3 pence, to 72 pence after a tentative deal with Hellenic Telecommunications to buy part of Telekom’s wholly owned subsidiary Romania Mobile Communications.
Burberry rose 3 per cent, or 23.20 pence, to 783.4 pence after brokers upgraded their ratings. HSBC upgraded the luxury goods firm from hold to buy, while Bernstein upgraded Burberry from perform to outperform.
But Kainos fell 12.6 per cent, or 108 pence, to 747 pence, as the IT services firm said full-year revenue would be below market consensus, with its Digital and Work Services arms still affected by the macroeconomic environment and related delays in customer decision-making.
But PPHE Hotels added 3.3 per cent, or 40 pence, to 1,250 pence after the Park Plaza and Art’otel owner posted 5.1 per cent growth in third-quarter revenue.
And Synthomer rose 4.2 per cent, or 7.2 pence, to 180 pence, as the polymer developer said its third quarter was in line with expectations.
Small-cap AI platform operator Cordel rose 9.4%, or 0.63p, to 7.25p on news it had received a contract extension with the Australian Rail Track Corporation.
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