Smiths Group PLC (LON:SMIN)

QUOTE AND NEWS  Mar 24  Comment 
LONDON (dpa-AFX) - British technology company Smiths Group plc (SMIN.L) reported Friday that its first-half pre-tax profit climbed to 346 million pounds from last year's 168 million pounds. Earnings per share were 75.6 pence, higher than 32.5...  Feb 16  Comment 
Date: 16/02/17 Not for distribution, directly or indirectly, in or into the United States or any jurisdiction in which such distribution would be unlawful. Smiths Group plc ...
Reuters  Jan 27  Comment 
* Dunes Point Capital, LLC announces the acquisition of Power Distribution, Inc. from Smiths Group PLC  Nov 7  Comment 
LONDON (dpa-AFX) - Medical device company Cooper Companies Inc. (COO) Monday announced that CooperSurgical has acquired Wallace, the in-vitro fertilization or IVF segment of Smiths Medical, a division of Smiths Group plc (SMIN.L). The purchase...  Oct 18  Comment 
LONDON (dpa-AFX) - Smiths Group plc (SMIN.L) said that it has established a ¤2.5 billion Euro Medium Term Note Programme with its ten relationship banks as dealers. The EMTN programme will facilitate the issuance by the Company of senior...  Sep 28  Comment 
LONDON (dpa-AFX) - British technology company Smiths Group plc (SMIN.L) reported Wednesday that its fiscal 2016 pre-tax profit increased to 346 million pounds from last year's 325 million pounds. Earnings per share grew to 65.6 pence from...


Smiths Group PLC is a global technology company headquartered in London and listed on the London Stock Exchange. The company is organized into five segments: Smiths Detection designs and manufactures sensors that detect and identify explosives, narcotics, weapons, chemical agents, biohazards and contraband; John Crane is a segment that provides mechanical seals, seal support systems, engineered bearings, power transmission couplings and specialist filtration systems; Smiths Medical, provides medication delivery systems, vital care products and safety devices that prevent needle-stick injuries and reduce cross-infection; Smiths Interconnect, builds specialized electronic and radio frequency components and sub-systems that connect, protect and control critical systems, and Flex-Tek, which engineers components that heat and move fluids and gases, flexible hosing and rigid tubing.[1]

Business Growth

With the exception of Smiths Detection, the company's segments are correlated with overall global economic health. Due to the recovery from the recession between 2008 and 2010, the company has seen improvements in its revenue and net income.[1] Smiths Detection has not seen any improvements due to continued delays to orders despite all-time high demands from the airport security business.[2] Smiths Detection, which makes up around 20% of the company's revenues, is highly dependent on the demand from the security industry. The global presence of the company serves as a hedge against bad economic times in certain countries, but also increases risk due to changes in currency values.

Key Trends and Forces

Counter-Terrorism and Defense Spending

The threat of terrorism jumped to the forefront of American foreign policy and defense spending after September 11, 2001. Since that time, defense spending has increased nearly $200 billion in order to pursue wars in Afghanistan and Iraq, but also to secure the US borders and ensure the safety of air travel and international shipping.[3] SMIN's products are sold to governments and government contractors around the world to assist in the noninvasive X-ray screening of cargo, travelers, and vehicles. The company is highly exposed to the forces that govern government spending and any decreased allocations for port, air cargo, or other shipping security would pose a significant challenge to Smiths Group's continued success.[4]

Large Amounts of International Business Expose the Company to Political and Currency Risks

The U.S provides nearly 50% of all of the company's revenues.[1] The remaining 50% is distributed among more than 30 countries in a diversified manner.[1] With the exception of the U.S, no other country generates more than 5% of the company's total revenue. Business is conducted in a variety of global currencies, and changes in currency values are a risk to revenue. The devaluation of the US dollar versus other currencies makes doing business in other countries more expensive in US dollars, but also made revenue abroad worth more in US dollars. Because SMIN makes the majority of its revenues from the US, a increase in the value of the dollar raises revenues when measured against the company's home currency of the british pound.


Since Smiths is a diversified technology firm, different divisions in the company face different competitors. In addition, the competitors do not offer very similar products, improving the competitive background of Smiths' industries.


  1. 1.0 1.1 1.2 1.3 Morningstar Global Documents: SMIN 2010 Annual Report
  2. Reuters: Smiths Detection sceond half falls short
  3. US Defense Spending and Budget: The Mismatch Between Spending and Resources, Heritage Foundation, 6/7/10
  4. When is a Spike in Terrorism Good News?, Motley Fool, 11/10/10
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki