ZURICH -(Dow Jones)- Surgical implant and device maker Synthes Inc. (SYST.VX) Thursday reported an 11.2% rise in first-half net profit but said that market conditions remain challenging in the short term and that it will continue to curb costs.
The West Chester, Pennsylvania-based company, which is listed on the Swiss stock exchange, said net profit for the six months to end June rose to $424.6 million from $381.7 million a year earlier, undercutting analyst views of $428 million.
Sales rose 9.8%, to $1.80 billion from $1.64 billion as the company benefited from brisk demand in Europe and Asia and saw a continued improvement in its key U.S. market.
"Synthes's delivered solid top-line growth performance with growth in profits exceeding sales growth," said Chief Executive Michel Orsinger. "While challenging economic and industry conditions continue to impact growth in our markets, the cost control measures that we have implemented have allowed us to improve our profitability."
Synthes had been under pressure during the economic crisis, especially in the U.S., where hospitals cut their stock and engaged in tough price negotiations. On top of that the company had to recall one of its spinal implants, Synex-II, after the U.S. Food and Drug administration flagged safety issues.
Looking ahead, the company said that since it expects a challenging market environment in the short-term it would continue to curb costs, especially in its spine business.
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