Zimmer Biomet reported $2 billion in net sales for the fourth quarter of 2018, flat from the previous year.
Six things to know:
1. Full year 2018 net sales were $7.9 billion, a 1.7 percent increase over the prior year. The company reported a diluted loss per share of $1.86 for the full year.
2. Zimmer Biomet reported a $901.1 million net loss for the fourth quarter, which included a goodwill impairment and litigation charges. Full year operating cash flow was $1.7 billion, and free cash flow was $1.3 billion for the year.
3. Net sales for the fourth quarter reached $1.2 billion in the Americas, a 1.2 percent decrease. However, the Asia Pacific market experienced a 4.6 percent increase to $336 million. Net sales for the full year dropped 0.2 percent in the Americas to $4.8 billion while in the Asia Pacific they grew 6.6 percent to $1.3 billion.
4. Fourth quarter sales by department include:
• Knees: $729 million (flat)
• Hips: $498 million (flat)
• Spine and craniomaxillofacial: $198 million (2.1 percent increase)
Knee sales in the Americas were down 2 percent, and hip sales in the Asia Pacific were down 3.2 percent. However, hip sales in the Americas grew 1.6 percent to $259 million.
5. Full year sales by department include:
• Knees: $2.7 billion (1.5 percent increase)
• Hips: $1.9 billion (2.6 percent increase)
• Spine and craniomaxillofacial: $764 million (0.8 percent increase)
6. In 2019, Zimmer Biomet projects a 0.5 percent decrease to 0.5 percent increase in sales growth over 2018. The company expects a free cash flow of around $1.1 billion to $1.3 billion and adjusted operating profit margin of 27 percent to 28 percent.
"Overall, our financial results for the full year were in-line with our expectations for the progress of the turnaround of the business, and increase our confidence in achieving our 2019 objectives," said President and CEO Bryan Hanson. "We look forward to delivering on our near-term commitments to transition to offense and drive enhanced shareholder value, including the launch of a number of exciting new products and platform technologies to expand our ecosystem of differentiated solutions."