Zimmer Reports Fourth Quarter and 2008 Financial Results
- Net Sales of $1.03 billion for the fourth quarter represents a decrease of 4% reported (a decrease of 1% constant currency)
- Diluted EPS for the fourth quarter were $0.75 reported, a decrease of 33% from the prior year period, and $1.00 adjusted, a decrease of 15% from the prior year period
- Net Sales of $4.12 billion for the full year represents an increase of 6% reported (an increase of 3% constant currency)
- Diluted EPS for the full year were $3.72 reported, an increase of 14% over the prior year period, and $4.05 adjusted, unchanged from the prior year period
(WARSAW, IN) January 29, 2009—Zimmer Holdings, Inc. (NYSE and SWX: ZMH) today reported financial results for the fourth quarter and year ended December 31, 2008. For the fourth quarter, the Company announced net sales of $1.03 billion, a decrease from the prior year period of 4% reported and a decrease of 1% constant currency. Diluted earnings per share for the quarter were $0.75 reported, a decrease of 33% and $1.00 adjusted, a decrease of 15% from the prior year period. Full-year net sales were $4.12 billion, an increase of 6% reported and 3% constant currency. Diluted earnings per share for the year were $3.72 reported, an increase of 14% and $4.05 adjusted, unchanged from the prior year.
“Although we are not satisfied with our 2008 financial performance relative to the market opportunities, we have made good progress in addressing the issues that negatively impacted our results. In the fourth quarter, we continued to ramp up our surgeon training and education programs, further advanced activities on the product development front, and resolved a large number of our outstanding payments to consulting healthcare professionals and institutions,” said David Dvorak, Zimmer President and CEO. “We are excited about the prospects for reestablishing positive momentum in our overall business, with the goal of restoring revenue growth as 2009 progresses.”
Net earnings for the fourth quarter were $167.5 million on a reported basis and $224.6 million on an adjusted basis, a decrease of 18.6% adjusted from the prior year period. Operating cash flow for the fourth quarter was $207 million. Net earnings for the full year 2008 were $848.6 million on a reported basis and $924.3 million on an adjusted basis, a decrease of 3.9% adjusted from the prior year.
During the fourth quarter of 2008, the Company acquired 1.2 million shares of its common stock for an aggregate purchase price of $48.1 million. For the full year 2008, the Company purchased 10.7 million shares for a total of $737 million. At the end of the year, $1.13 billion of authorization remained under the Company’s $1.25 billion repurchase program, which expires on December 31, 2009.
In the fourth quarter, the Company increased its provision for known and anticipated claims relating to the previously announced voluntary suspension of marketing and distribution of the Durom® Acetabular Component in the U.S. from the previously announced $47.5 million to $69 million. The increase is based on an assessment of the number of claims received since the end of the third quarter of 2008. Adjusted 2008 figures in this release exclude the impact of this provision.
Contacts
Media
Brad Bishop
574-372-4291
bradley.bishop@zimmer.com
Investors
James T. Crines
574-372-4264
james.crines@zimmer.com
Paul Blair
574-371-8042
paul.blair@zimmer.com
