Zimmer Biomet Q1 Profit Declines

Indiana's medical device industry is widely known as one of the strongest in the world.

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Warsaw-based Zimmer Biomet Holdings Inc. (NYSE: ZBH) is reporting first quarter net income of $106 million, down from $171 million during the same period the previous year. Chief Executive Officer David Dvorak says the results are on the high end of the company’s expectations.

Zimmer Biomet says net sales for the first quarter increased nearly 68 percent on a reported basis to $1.9 billion. Dvorak says the first quarter revenue lays the groundwork for improvement as the year continues.

"We also continued to make good progress against our net synergy commitments, which supported our ability to again deliver operating margin leverage and strong adjusted earnings per share results," says Dvorak. "We remain on pace to exit the year at or above market growth rates, driven by our focused commercial channel and the cross-selling opportunities across our market-leading musculoskeletal portfolio."

The earnings report comes after Zimmer Biomet completed the acquisition of Colorado-based Ortho Transmission LLC. Earlier this week, the company announced it has entered into a definitive agreement to acquire Arizona-based Cayenne Medical Inc.