Smith & Nephew, one of Europe's biggest manufacturers of medical equipment, has reported a 7% fall in full-year trading profits.
Profits for the year to the end of 31 December fell to $1bn (£800m) from $1.1bn in the preceding 12-month period.
Revenues edged 2% higher to $4.7bn, with chief executive Olivier Bohuon saying that the performance "was not at the level" the company wanted.
Challenging market conditions in China and the Middle East had together shaved more than a percentage point off growth in revenues in 2016, he said.
"However, I was pleased with our 2016 performance in areas such as sports medicine and knee implants, where we maintained strong momentum," Bohuon added.
"I am confident we now have the right structure and capability in place and are focused on improving execution across the group, with a clear set of actions underway."
Smith & Nephew said it expected stronger revenue growth in 2017, with underlying earnings forecast to rise between 3% and 4%.
Its shares opened more than 4% lower in London following the release of the earnings report.