Orthopedic device maker Zimmer Holdings Inc ZMH.N posted a higher-than-expected quarterly profit but cut the top end of its full-year earnings forecast, hit by lower government reimbursements and pricing pressures.
Sales in Zimmer's reconstructive business, focused mainly on hips and knees, fell 2 percent in the third quarter. Excluding the impact of currency changes, sales rose about 2 percent.
The reconstructive business makes up about 74 percent of overall sales.
Zimmer's total sales in Europe declined 3 percent, including the effects of currency changes, as patients delay medical procedures to save money in a weak economy.
Third-quarter net income fell to $178.1 million, or $1.02 per share, from $191.5 million, or $1.01 per share, a year earlier. Total revenue fell about 1 percent to $1.03 billion.
Earnings excluding one-time items were $1.15 per share. Analysts on average were expecting $1.13 per share, on revenue of $1.03 billion, according to Thomson Reuters I/B/E/S.
Zimmer said it now expects full-year earnings of between $4.75 and $4.80 per share, after cutting the top end of its range from $4.85.
On an adjusted basis, the company expects to earn $5.25 to $5.30 per share.
For the full year, Zimmer expects revenue to be flat.
(Corrects last paragraph to show revenue is expected to be flat, not down 2 percent. This story incorporates corrections made to a previous story that was withdrawn.)
(Reporting By Adithya Venkatesan in Bangalore; Editing by Ted Kerr)