Biomet Kicks Off Earnings Season with Strong Results
BY LAUREN UZDIENSKI, JUNE 30, 2009
Biomet pre-announced sales results on Friday for their fourth quarter and fiscal year 2009, which ended May 31, 2009.
The company reported net sales of $639.0 million for FQ4:09, which represents an increase of 1% as reported and 7% when adjusting for currency. Among segments, recon, excluding dental, increased 3% as reported and 11% constant currency. Dental decreased by 19% as reported and 13% constant currency. Hip sales were up 1% as reported and 9% constant currency, and knee was up 4% as reported and 11% constant currency. Spine increased 16% as reported and 18% on a constant currency basis. These growth rates reflect some acceleration from FQ3:09, namely in knee and spine, after adjusting for currency.
For the fiscal year 2009, Biomet's net revenues were $2.5 billion, representing a 5% increase as reported and 8% after adjusting for currency. Recon sales, excluding dental, were up 8% and 12% constant currency. Dental decreased by 9% as reported and 6% constant currency. Hip was up 8% as reported and 11% constant currency, and knee was also up 8% and 12% constant currency. Finally, spine grew by 7% as reported and 7% constant currency.
It's early in the reporting cycle, but Biomet's sales could portend stronger growth for the orthopedics industry than we saw in the first quarter. However, talk of economic recovery is probably still premature. Next up on the earnings calendar are Johnson & Johnson (DePuy) on July 14th and Stryker on the 21st, which should further set the tone for the quarter.
