Smith & Nephew
The company, which also has Endoscopy and Advanced Wound Management units, posted top-line growth of 10 percent, taking revenue to a better-than-expected $1.03 billion (643.14 million pounds).
Trading profit, however, fell 9 percent to $205 million, and adjusted earnings per share edged up by just 0.6 percent to 16.2 cents.
Chief Executive Olivier Bohuon said he was disappointed with the group's margin performance, with Orthopaedics overshadowing Endoscopy and Advanced Wound Management.
We are taking the steps necessary to reduce a cost base in Orthopaedics that is too high for on-going market conditions, he said.
I expect to see material improvements from Q4 onwards and am confident that the Group will deliver a Q4 trading profit margin above 24 percent.
Its trading margin in the third quarter was 19.8 percent.
Smith & Nephew, along with its competitors, has been hit by low demand for hip and knee replacements as people put off elective procedures because of worries about job losses.
Last month, competitor Zimmer
Analysts expected Smith & Nephew to report revenue of $1.02 billion and earnings per share of $0.17, according to a Thomson Reuters I/B/E/S poll of eight brokers.
(Reporting by Paul Sandle)