Zimmer Holdings, Inc. Reports Third Quarter 2009 Financial Results
- Net Sales of $976 million represents an increase of 2.4% reported (3.6% constant currency)
- Diluted EPS for the third quarter were $0.70 reported, a decrease of 26.3% from the prior year period, and $0.88 adjusted, a decrease of 9.3% from the prior year period
- Reaffirms full-year sales and adjusted EPS guidance
(WARSAW, IN) October 22, 2009—Zimmer Holdings, Inc. (NYSE and SWX: ZMH) today reported financial results for the quarter ended September 30, 2009. The Company reported third quarter net sales of $976 million, an increase of 2.4% reported and 3.6% constant currency over the third quarter of 2008. Diluted earnings per share for the quarter were $0.70 reported and $0.88 adjusted, a decrease of 9.3% adjusted from the prior year period. Third quarter 2008 adjusted earnings per share included a gain of $0.08 on the sale of certain equity holdings.
"We are pleased that our sales momentum continued to build in the third quarter as we achieved year-over-year constant currency growth in revenues in each of our three geographic segments," said David Dvorak, Zimmer President and CEO. "Further, we believe we are stabilizing our core knee and hip franchises and establishing a solid foundation for future growth."
Operating profit on an adjusted basis for the third quarter of $264 million was flat compared to the prior year's third quarter. Net earnings for the third quarter were $149.9 million on a reported basis and $188.3 million on an adjusted basis, a decrease of 13.9% adjusted from the prior year period. Operating cash flow for the third quarter was $352.3 million. Net earnings for the first nine months of 2009 were $562.2 million on a reported basis and $613.8 million on an adjusted basis, a decrease of 12.3% adjusted from the prior year period.
During the quarter, the Company utilized $67 million of cash to acquire 1.5 million shares under its $1.25 billion repurchase program. At the end of the quarter, $730 million of share repurchase authorization remained available. The Board of Directors has recently extended this program until December 31, 2010.
The Company also recorded a provision of $35.0 million in the quarter, or approximately $0.10 per share net of tax, for known and anticipated claims relating to the 2008 temporary suspension of marketing and distribution of the Durom® Acetabular Component in the U.S. Adjusted figures in this release exclude the impact of this provision.
James T. Crines