Biomet's revised earnings show much wider losses than previously reported

September 3, 2013 by Brian Johnson

Annual losses at Biomet increase dramatically in a revised earnings release for the Warsaw, Ind.-based orthopedics maker.

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Biomet amended its Q4 and annual earnings report to reflect a swing to red in Q4 and much deeper losses for the full year compared to earlier reports.

The Warsaw, Ind.-based orthopedics company posted losses of $221.2 million on $784 million in sales during the 3-month period ended May 31, 2013. An initial earnings report released in July had reported a $20.5 million profit for the quarter.

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For the year Biomet reported losses of $623.4 million on $3.05 billion in sales, compared to initial reports of $381 million in losses for the quarter. That's also a wider loss from the same period last year, when Biomet posted a $458.8 million loss on $2.83 billion in sales.

The final earnings results for both the 3- and 12-month period ended May 31 include the finalization of the goodwill impairment charge related to the Europe reporting unit and the correction of certain income tax accounts, which did not impact net sales, the company said in a prepared release.

Special pre-tax items totaled $1.23 billion during 2013, including a $567.4 million non-cash goodwill and intangible asset impairment charge related to the company's dental reconstructive and Europe reporting units, compared to $940.7 million during fiscal year 2012.