Zimmer Holdings Inc. (NYSE:ZMH) flexed its muscles in the hip business, riding strong sales in one of its key markets to a 5 percent jump in overall sales during the first quarter.
The Warsaw, Ind.-based orthopedic maker posted a $209 million profit on $1.11 billion in sales during the three months ended March 31, a 2 percent increase over the $205 million in net income on $1.06 billion in sales posted during the same period last year.
Find out how Zimmer stacks up in the eyes of orthopedic surgeons
Sales were primarily driven by a 7 percent increase in Zimmer’s hip business and a 16 percent increase for its trauma unit. Those results more than overcame essentially flat knee business and a 5 percent drop in spine business, due to challenges in reimbursement and pricing.
Zimmer posted $337 million in hip implant and associated product sales, compared to $315.7 million during Q1 2010. The increase was driven by strong domestic and Asia-Pacific performance. The company’s knee business posted $462 million in sales, compared to $460 million during the same period last year.
Company officials also addressed the new 800-pound-gorilla in the orthopedics market, the recently announced $21.3 billion Johnson & Johnson (NYSE:JNJ)/Synthes (SWX:SYST.VX) merger.
Zimmer CEO David Dvorak told analysts in a conference call this morning that the company would consider bolstering its trauma and spine business through targeted acquisitions in order to compete with J&J’s new stronghold in those markets, but that it wouldn’t break the bank in order to keep up with the Johnsons.
“We wouldn’t do it at the cost of an overly dilutive transaction,” Dvorak said.
A combined Synthes/JNJ would create the largest player in the orthopedics game, should the merger close as expected by mid-2012. J&J CEO William Weldon has said that Synthes will be run under the DePuy Orthopedics umbrella.
Zimmer officials said they expect to see sales rise 2 to 4 percent over the course of 2011. ZMH shares were up nearly 5 percent to $65.96 in mid-day trading.
MassDevice keeps a close eye on public medical device companies, tracking their quarterly sales and earnings reports. For the most recent filings, check out our Earnings Roundup, where we collect each quarter’s reports.
Here’s a quick rundown of a few releases over the past couple days:
Palomar increases sales, gets court date in patent fight
Palomar Medical Technologies Inc. (NSDQ:PMTI) posted a loss of $1.9 million, or 10 cents per diluted share, on sales of $18.2 million during the three months ended March 31. That compares with a loss of $2.5 million, or 14 cents per diluted share, on sales of $16.0 million during the same period last year.
Palomar will get its day in court in a suit filed against competitor Candela Corp., the company said in an SEC filing. The suit was bought by Syneron Inc. last year. Palomar alleges that Candela infringed patents related to light-based hair removal.
Palomar also announced the opening of a subsidiary in Spain.
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ConvaTec losses ease despite decreased sales
ConvaTec reported losses of $609.9 million on revenue of $1.51 billion during the year ended Dec. 31. That compares with losses of $658.5 million on revenue of $1.53 billion in 2009.
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Greatbatch sees income increase of more than 100 percent
Greatbatch Inc. (NYSE:GB) reported a profit of $11.9 million, or 51 cents per diluted share, on revenue of $148.8 million during the three months ended April 1. That compares with a profit of $5.5 million, or 24 cents per diluted share, on revenue of $132.0 million during the same period last year.
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ZOLL profits jump 62 percent
ZOLL Medical Corp. (NSDQ:ZOLL) posted profit of $6.0 million, or 27 cents per diluted share, on sales of $122.5 million during the three months ended April 3. That compares with profits of $3.7 million, or 17 cents per diluted share, on sales of $107.1 million during the same period last year.
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RTI rises into the black after sales bump
RTI Biologics Inc. (NSDQ:RTIX) posted profits of $1.2 million, or 2 cents per diluted share, on sales of $40.6 million during the three months ended March 31. That compares with a loss of $54,000, or 0 cents per diluted share, on sales of $37.8 million during the same period last year.
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LeMaitre profits dive in spite of increased sales
LeMaitre Vascular Inc. (NYSE:LMAT) posted net earnings of $64,000, or 0 cents per diluted share, on revenue of $14.6 million during the three months ended March 31. That compares with net earnings of $1.0 million, or 6 cents per diluted share, on revenue of $13.8 million during the same period last year.
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ResMed sales, profits rise
ResMed Inc. (NYSE:RMD) posted net earnings of $53.4 million, or 34 cents per diluted share, on revenue of $313.3 million during the three months ended March 31. That compares with profits of $48.8 million, or 31 cents per diluted share, on revenue of $278.7 million during the same period last year.
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CryoLife breaks quarterly revenue record
CryoLife Inc. (NYSE:CRY) reported profit of $1.7 million, or 6 cents per diluted share, on sales of 30.2 during the three months ended March 31. That compares with profits of $1.9 million, or 7 cents per diluted share, on sales of $29.7 million during the same period last year.
NeuroMetrix losses ease despite lower sales
NeuroMetrix Inc. (NSDQ:NURO) posted losses of $2.7 million, or 12 cents per diluted share, on sales of $2.9 million during the three months ended March 31. That compares with losses of $4.8 million, or 21 cents per diluted share, on sales of $3.6 million during the same period last year.
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Invacare profits more than double
Invacare Corp. (NYSE:IVC) posted net earnings of $7.5 million, or 23 cents per diluted share, on revenue of $428.5 million during the three months ended March 31. That compares with net earnings of $3.1 million, or 10 cents per diluted share, on revenue of $402.2 million during the same period last year.
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Natus Medical climbs out of the red on increased sales
Natus Medical Inc. (NSDQ:BABY) reported profits of $3.1 million, or 11 cents per diluted share, on revenue of $59.1 million during the three months ended March 31. That compares with a loss of $331,000, or 1 cent per diluted share, on revenue of $49.3 million during the same period last year.
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