WARSAW, Ind., Oct. 27, 2011 /PRNewswire/ -- Zimmer Holdings, Inc. (NYSE and SIX: ZMH) today reported financial results for the quarter ended September 30, 2011. The Company reported third quarter net sales of $1,031million, an increase of 6.9% reported and 2.4% constant currency over the third quarter of 2010. Diluted earnings per share for the quarter were $1.01 reported and $1.04 adjusted, an increase of 8.3% adjusted over the prior year period.
"Zimmer delivered against our financial commitments in the third quarter with consistent results in both revenues and earnings," said David Dvorak, Zimmer President and CEO. "Progress in the commercialization of new products supported a strong performance in many international markets. Through this progress and ongoing financial discipline, we continue to deliver value to stockholders."
Net earnings for the third quarter were $191.5 million on a reported basis and $197.2 million on an adjusted basis, an increase of 2.4% adjusted over the prior year period. Operating cash flow for the third quarter was $350.6 million.
During the quarter, the Company utilized $549 million of cash, supported by $375 million of borrowings, to acquire 10.1 million shares. At the end of the third quarter, $299 million of share repurchase authorization remained available under the current program, which expires on December 31, 2013.
Guidance
The Company updated its full-year revenue and adjusted earnings per share guidance for 2011. Full-year revenues for 2011 are now expected to increase between 2.3% and 2.7% on a constant currency basis from 2010. The Company estimates that foreign currency translation will increase revenues by approximately 2.5% for the full year 2011, resulting in reported revenue growth between 4.8% and 5.2%. This compares with prior revenue guidance of 2.5% to 3.5% constant currency and 5.5% to 6.5% reported growth over prior year. Full-year 2011 diluted earnings per share are now projected to be in a range of $4.40 to $4.45 on a reported basis and $4.75 to $4.80 on an adjusted basis, which represents a narrowing toward the top end of prior adjusted earnings guidance.
Conference Call
The Company will conduct its third quarter 2011 investor conference call today, October 27, 2011, at 8:00 a.m. Eastern Time. The live audio webcast can be accessed via Zimmer's Investor Relations website at http://investor.zimmer.com. It will be archived for replay following the conference.
Individuals who wish to dial into the conference call may do so at (888) 878-3901. International callers should dial (706) 634-9520. A digital recording will be available two hours after the completion of the conference call from October 27, 2011, to November 10, 2011. To access the recording, US/Canada callers should dial (800) 642-1687, or for International callers, dial (706) 645-9291, and enter the conference ID 12302169.
Sales Tables
The following tables provide sales results by geographic segment and product category, as well as the percentage change compared to the prior year quarter and nine months on both a reported and constant currency basis.
