Biomet Inc. swung to a fiscal first-quarter profit, as its sports medicine, extremities and trauma business continues to benefit from a recent acquisition.Though privately held, Biomet’s results are closely watched because the maker of orthopedic medical devices reports earlier than larger competitors–like Zimmer Holdings Inc. (ZMH), Stryker Corp. (SYK) and Johnson & Johnson (JNJ)--and potentially could signal trends for the industry.Biomet had been in the red for years, weighed down by charges related to its 2007 buyout by a private-equity consortium. A weak economy also has caused some patients to put off hip and knee-replacement procedures. Still, sales in the sports-medicine and extremities segment have risen sharply in recent quarters thanks to the company’s acquisition of DePuy Orthopaedics Inc.’s trauma business last year, helping drive Biomet’s top-line growth.For the latest period, Biomet reported knee sales rose 3.5% and hip sales increased 1.9%. Sales for sports medicine, extremities and trauma jumped 17%, while the spine and bone healing segment sales fell 6.6%.For the quarter ended Aug. 31, Biomet reported a profit of $31.1 million, compared with a year-earlier loss of $31.5 million. The year-earlier period included a loss on extinguishment of debt of $42.4 million. Excluding that and other items, adjusted earnings rose to $80.8 million from $60.4 million.Net sales grew 3.3% to $730.7 million and excluding currency fluctuations were up 4.3%. Gross margin narrowed to 67.5% from 67.8%.
Biomet Swings to 1st-Quarter Profit on Trauma Business Growth
Source:online.wsj.com
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