(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made to a previous story that was withdrawn. )
Oct 25 Orthopedic device maker Zimmer Holdings
Inc 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
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.
(Reporting By Adithya Venkatesan in Bangalore; Editing by Ted