Warsaw-based Zimmer Biomet Holdings Inc. (NYSE: ZBH) is reporting second quarter net income of $184 million, compared to a net loss of $31.3 million during the same period last year. The earnings report follows the announcement earlier this month that Chief Executive Officer David Dvorak is stepping down.
The medical device manufacturer is also reporting net sales of nearly $2 billion for the second quarter, an increase of 1.1 percent over second quarter 2016. Interim CEO Daniel Florin says Zimmer Biomet is working to continue its improvement.
"During the second quarter, we increased production output from our Warsaw North Campus manufacturing facility, and continued to drive efforts to achieve best-in-class quality systems," said Florin. "Our sales growth fell short of our expectations, due in part to production delays of certain key brands and slower-than-expected sales recapture from previously affected customers in the United States. Looking forward, we remain focused on fully restoring product supply to enhance our commercial execution, while continuing to closely engage with our customers and take advantage of the opportunities in front of us."
Zimmer Biomet Board of Directors Chairman Larry Glasscock says the board has "great confidence" in Florin as he continues to transition into the role of interim CEO.
"He has already begun to leverage his deep knowledge of Zimmer Biomet and decades of medical device industry experience to lead the Company during this period," said Glasscock. "We have initiated a thorough search to identify the best candidate to serve as Zimmer Biomet’s next CEO. We are seeking a strong leader, whose strategic and operational track record aligns with Zimmer Biomet’s commitment to growth and enhancing stockholder value."
This is the second consecutive quarter of major profit growth for Zimmer Biomet. In first quarter 2017, the company nearly tripled its net earnings.