Zimmer recently released its first quarter financial report.
Here are five observations from Zimmer’s report.
Written By: Laura Miller at Becker’s Spine
1. The company reported net earnings of $221.5 million in Q1, up from $218.6 million during the same period last year. The company also reported net sales of $1.2 billion, up slightly from Q1 2013 where the company saw net sales of $1.1 billion. “Zimmer produced solid results during the first quarter, providing further validation of our long-term growth and stockholder value creation strategies,” said David Dvorak, Zimmer president and CEO in the news release. “As we continue focus on the execution of our quality and operational excellence initiatives, we believe that the company is well positioned for continued growth in the evolving global healthcare landscape through the ongoing development and commercialization of innovative and clinically relevant solutions.”
2. In April, the boards of Zimmer and Biomet approved the definitive merger agreement, in which Zimmer will acquire Biomet for $10.35 billion in cash and $3 billion in Zimmer stock. Additional costs connected to the pending transaction with Biomet were excluded from the adjusted earnings measure, according to the financial results news release. “Competition just got tougher as Zimmer will effectively surpass Stryker to attain the number two spot in orthopedic sales and is now in prime position to compete with market leader Johnson & Johnson,” said Frost & Sullivan Advanced Medical Technologies Research Analyst Tara Shelton after the acquisition was announced. “With the deal not closing until early 2015, the effect has yet to be seen in regards to future employment, commodity pricing and innovation.”
