Strong pound hits UK engineer Smiths; shares slump

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Strong pound hits UK engineer Smiths; shares slump

British engineer Smiths Group Plc said full-year earnings would be reduced by 4-5 percent if foreign exchange rates remained at current levels, sending its shares tumbling as much as 7 percent on Wednesday. Smiths Group, which generates about 95 percent of its revenue from outside the UK, also reported a 3 percent fall in first-half profit, hurt by a stronger pound. "The key challenge for us as we move into the second half is the rate at which we are translating our U.S. dollar earnings into sterling," Chief Financial Officer Peter Turner said on a conference call.

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