Zimmer Holdings, Inc. (Zimmer) has reported net sales of $975.6 million for the third quarter of 2009, up 2%, compared with the net sales of $952.2 million in the year-ago quarter. It also posted net earnings of $149.9 million, or $0.70 per diluted share, for the third quarter of 2009, compared with the net earnings of $215 million, or $0.95 per diluted share, in the year-ago quarter.
Operating profit on an adjusted basis for the third quarter of $264 million was flat
compared to the prior year’s third quarter. Net earnings for the third quarter were $149.9 million on a reported basis and $188.3 million on an adjusted basis, a decrease of 13.9% adjusted from the prior year period. Operating cash flow for the third quarter was $352.3 million. Net earnings for the first nine months of 2009 were $562.2 million on a reported basis and $613.8 million on an adjusted basis, a decrease of 12.3% adjusted from the prior year period.
During the quarter, the Company utilized $67 million of cash to acquire 1.5 million shares under its $1.25 billion repurchase program. At the end of the quarter, $730 million of share repurchase authorization remained available. The Board of Directors has recently extended this program until December 31, 2010.
The Company also recorded a provision of $35.0 million in the quarter, or approximately $0.10 per share net of tax, for known and anticipated claims relating to the 2008 temporary suspension of marketing and distribution of the Durom® Acetabular Component in the U.S. Adjusted figures in this release exclude the impact of this provision.
“We are pleased that our sales momentum continued to build in the third quarter as we achieved year-over-year constant currency growth in revenues in each of our three geographic segments,” said David Dvorak, Zimmer President and CEO. “Further, we believe we are stabilizing our core knee and hip franchises and establishing a solid foundation for future growth.”