02.18.15
Zimmer Holdings Inc. reported a 1.1 percent rise in sales last year, fueled by solid gains in knee and extremities revenue. But earnings fell 5 percent as hip and trauma proceeds flatlined and surgical sales took a nosedive. The company posted 2014 earnings of $720 million, or $4.19 per diluted common share, on sales of $4.67 billion—a 5 percent dropoff from its 2013 earnings of $761 million, or $4.43 a share, on sales of $4.62 billion.
Zimmer’s Reconstructive portfolio performed well last year, generating $3.49 billion in sales, or 2 percent better than its 2013 production. Extremities led growth, rising 5 percent to $204 million, though knees turned in a solid performance as well, climbing 3 percent to $1.96 billion. Hip sales remained flat at $1.32 billion, according to the company’s latest earnings report.
Dental sales rose 1 percent to $243 million, and spinal revenue edged up 2 percent to $207 million, but neither gain could offset flat trauma sales ($317 million) or the 5 percent decrease in surgical/other proceeds ($410 million).
Trauma and dental sales both jumped 9 percent in the fourth quarter, bolstered by a mix of new product launches and old favorites. “Zimmer spine business delivered 9.1 percent growth in the fourth quarter, a performance which was accelerated by a cadence of innovative new product launches throughout 2014,” CEO David C. Dvorak told investors on a conference call. “In the fourth quarter, the Virage OCT spinal fixation system and the Optio-C interior cervical system continued to expand our customer base in the global spine market while driving volume and mix growth.”
Zimmer’s P-I Branemark philosophy offerings were popular with European dental customers during the last quarter of 2014, while Trabecular Metal Dental implants and custom-milled Zfx CAD/CAM digital density solutions sold well globally, Dvorak added.
The Warsaw, Ind.-based orthopedic device manufacturer posted fourth-quarter earnings of $157 million, or 91 cents per diluted common share, on sales of $1.22 billion. That’s a 34 percent drop from the $236 million, or $1.36 a share, on sales of $1.24 billion reported for the prior year’s fourth quarter.
During his discussion with analysts, Dvorak also highlighted fourth-quarter growth in the company’s Asia Pacific and Europe, Mideast and Africa sales regions. For the year, Zimmer’s European sales increased 5 percent to $1.26 billion, while Asia-Pacific proceeds climbed 2 percent to $810 million. Americas sales slipped 1 percent to $2.5 billion.
Company executives expect first-quarter 2015 revenues to increase between 1.5 percent and 2.5 percent on a billing day and constant currency basis over the prior year period. Foreign currency translation most likely will decrease revenues by approximately 6 percent for the first quarter; diluted earnings per share are projected to range from $1.12 to $1.14 on a reported basis and $1.58 to $1.60 on an adjusted cash basis.
Zimmer is still trying to close its $13.35 billion acquisition of rival Biomet Inc. Executives with both companies continue to plan an integration strategy while they await approval from U.S. and foreign regulators.
Zimmer’s Reconstructive portfolio performed well last year, generating $3.49 billion in sales, or 2 percent better than its 2013 production. Extremities led growth, rising 5 percent to $204 million, though knees turned in a solid performance as well, climbing 3 percent to $1.96 billion. Hip sales remained flat at $1.32 billion, according to the company’s latest earnings report.
Dental sales rose 1 percent to $243 million, and spinal revenue edged up 2 percent to $207 million, but neither gain could offset flat trauma sales ($317 million) or the 5 percent decrease in surgical/other proceeds ($410 million).
Trauma and dental sales both jumped 9 percent in the fourth quarter, bolstered by a mix of new product launches and old favorites. “Zimmer spine business delivered 9.1 percent growth in the fourth quarter, a performance which was accelerated by a cadence of innovative new product launches throughout 2014,” CEO David C. Dvorak told investors on a conference call. “In the fourth quarter, the Virage OCT spinal fixation system and the Optio-C interior cervical system continued to expand our customer base in the global spine market while driving volume and mix growth.”
Zimmer’s P-I Branemark philosophy offerings were popular with European dental customers during the last quarter of 2014, while Trabecular Metal Dental implants and custom-milled Zfx CAD/CAM digital density solutions sold well globally, Dvorak added.
The Warsaw, Ind.-based orthopedic device manufacturer posted fourth-quarter earnings of $157 million, or 91 cents per diluted common share, on sales of $1.22 billion. That’s a 34 percent drop from the $236 million, or $1.36 a share, on sales of $1.24 billion reported for the prior year’s fourth quarter.
During his discussion with analysts, Dvorak also highlighted fourth-quarter growth in the company’s Asia Pacific and Europe, Mideast and Africa sales regions. For the year, Zimmer’s European sales increased 5 percent to $1.26 billion, while Asia-Pacific proceeds climbed 2 percent to $810 million. Americas sales slipped 1 percent to $2.5 billion.
Company executives expect first-quarter 2015 revenues to increase between 1.5 percent and 2.5 percent on a billing day and constant currency basis over the prior year period. Foreign currency translation most likely will decrease revenues by approximately 6 percent for the first quarter; diluted earnings per share are projected to range from $1.12 to $1.14 on a reported basis and $1.58 to $1.60 on an adjusted cash basis.
Zimmer is still trying to close its $13.35 billion acquisition of rival Biomet Inc. Executives with both companies continue to plan an integration strategy while they await approval from U.S. and foreign regulators.