Zimmer released first quarter financial results, with net revenue decreasing and the Biomet acquisition not yet finalized.
1. Net sales were $1.13 billion, which was a 2.3 percent decrease over the same period last year.
2. Net earnings were $177.1 million, a slight decrease from the same time last year.
3. Operating cash flow for the first quarter was $73 million, which includes a $97.6 million payment to settle a pre-issuance hedge contract associated with a recent senior notes offering.
4. The company paid $37.3 million in dividends and declared the first quarter dividend of $0.22 per share.
5. The net sales by business segment were:
• Knee: $488 million — flat
• Hip: $312 million — down 6 percent
• Extremities: $52 million
• Spine: $49 million — up 3 percent
6. Net sales in the Americas were up 1 percent to $645 million.
7. Europe net sales were down $299 million.
8. The adjusted full year diluted earnings per share on a standalone basis are expected to reach $6.30 to $6.40.
9. Currency changes negatively impacted Biomet earnings, which the company expects to be offset by greater synergies from the pending merger than were previously considered.
10. The net operating synergies connected to the pending merger are now expected to reach $350 million by the third year after the transaction.