Zimmer reported an increase in net sales over the previous quarter as the company waits to finalize its Biomet acquisition.
"Looking to future quarters, we believe that our pending combination with Biomet, which would expect to close in the first quarter of 2015, will enhance stockholder value through the creation of a leading innovator in the global musculoskeletal market," said Zimmer President and CEO David Dvorak.
Here are 10 things to know about the financial report:
1. Third quarter net sales grew 2.9 percent to $1.1 billion
2. Net earnings increased 7.9 percent over the same period last year, reaching $165.5 million.
3. Open cash flow was reported as $255.7 million for the quarter.
4. The company updated full-year revenue expectations to grow approximately 2.25 percent on a constant currency basis from the previous year. Previously the company expected a 2 percent to 3 percent increase.
5. Foreign currency translation is expected to decrease revenues around 0.75 percent for the full year, with reported revenue growth estimated at 1.5 percent. The updated guidance is due to several factors, including the $70 million in expenses related to the Biomet acquisition.
6. Net sales in the Americas increased 1 percent to $638 million. In Europe, net sales were up 6 percent to $271 million. The Asia Pacific market also grew 6 percent to $197 million.
7. Zimmer's Knee line reached $461 million, with the biggest growth in Europe — 10 percent. The knee line in the Americas was up 6 percent to $285 million.
8. Spine net sales reached $51 million, a 6 percent increase over the same period last year. Trauma declined 1 percent to $78 million
10. Hip net sales in the Americas reached $150 million, flat from 2013. European sales were up 2 percent and the Asia Pacific business line had the highest growth — 8 percent. Overall hip net sales were up 2 percent to $316 million.