Zimmer 3rd-quarter profit slides 30 percent

Zimmer Holdings profit falls 30 percent amid 1-time costs, loss on interest

• On 8:05 am EDT, Thursday October 22, 2009

WARSAW, Ind. (AP) -- Orthopedic implant maker Zimmer Holdings Inc. said Thursday its profit shrank 30 percent in the third quarter due to one-time costs and a loss on interest.

Zimmer reported a profit of $149.9 million, or 70 cents per share, down from $214.7 million, or 95 cents per share, in the same period a year earlier. Excluding special items, profit in the latest quarter was 88 cents per share.

According to Thomson Reuters, analysts expected profit of 86 cents per share.

Revenue increased 2 percent, to $975.6 million from $952.2 million as sales of devices used in reconstructive knee surgeries increased. Analysts estimated $953.8 million in revenue.

Zimmer also reported a loss of $4.2 million on interest and other items, compared with a profit of $28.2 million in the year-ago quarter.

The latest quarter included acquisition, integration, realignment and other costs of $22.2 million, compared with $5.6 million in the year-ago period.

Sales of reconstructive products increased 1 percent to $738 million for the third quarter due to the improvement in knee implant revenue. Hip implant sales dipped 1 percent to $288 million. Sales of trauma and spinal implants improved, which helped offset a decrease in dental revenue.

Zimmer backed its full-year outlook for profit of $3.85 to $4 per share, with revenue rising 1 to 3 percent excluding the effects of foreign currency exchange rates. The forecast implies revenue of $4.16 billion to $4.24 billion.

Analysts expect a profit of $3.88 per share and revenue of $4.06 billion.

Shares of Zimmer Holdings advanced 97 cents to $53.20 in premarket activity.

Buzz up!