Benzinga | Feb 18, 2021 07:48AM EST

Smith & Nephew Maintains Dividend For 2021 Despite Q4 Earnings Hit By COVID-19; Shares Drop

* Medical device maker Smith & Nephew plc (NYSE: SNN) slips in the premarket after reporting a slump in revenues and profits. Full-year 2020 revenue fell 11.2% Y/Y to $4.6 billion, and operating profit dropped over 60% to $295 million.

* COVID-19 related restrictions swamped other patient care areas, particularly the elective surgeries that require Smith & Nephew's replacement prosthetic hips and knees.

* For 2020, the trading profit of $683 million almost halved from $1.17 billion recorded for 2019.

* Cash generated from operations reached $972 million in 2020, down from $1,370 million a year ago.

* The company declared a full-year dividend of 37.5 cents per share, unchanged from 2019.

* For 2021, the company expects the COVID-19 impact to continue into the first half of 2021. The timing of recovery remains unclear.

* Smith & Nephew chief executive Roland Diggelmann said: "We start 2021 with three clear priorities: to return to top-line growth and recapture momentum; to drive further operational improvement; to continue to respond effectively to COVID-19."

* See the Q4 earnings presentation here.

* Price Action: SNN stock dropped 2.93% at $42.68 in the premarket trading on the last check Thursday.