Biomet Inc. swung to a fiscal fourth-quarter profit as the medical-device maker logged stronger sales and benefited from comparison with a year-ago quarter that was weighed down by a large write-down.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 is seen as possibly foreshadowing industry trends.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. But strong sales in the sports-medicine and extremities segment have helped to drive Biomet’s top-line growth in recent quarters.In the latest period, Biomet reported its large joint reconstructive segment’s sales were down 1%. Sales for sports medicine, extremities and trauma jumped 62%, while the spine and bone healing segment saw sales fall 18%.For the quarter ended May 31, Biomet reported a profit of $20.5 million versus a year-ago loss of $389.1 million. The year-ago quarter included a goodwill and intangible asset impairment charge of $529.8 million. Excluding one-time items, adjusted earnings were $133 million versus $105.1 million.Sales increased 6% to $783.9 million.In the U.S., sales grew 6.1% to $466.3 million. In Europe they grew 3.5% to $188.7 million.Gross margin narrowed to 66.8% from 69.6%.Source:Saabira Chaudhuri.dowjones.com
Biomet Swings to 4th-Quarter Profit on Stronger Revenue, Absence of Charge
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