Zimmer announces share repurchase scheme and issues guidance

Zimmer has announced the authorisation of a share repurchase programme. Following the programme of $1 billion (510.9 million pounds) of share repurchases announced in December 2005, the board of directors has backed a new programme authorising purchases of up to $1 billion of the company’s shares up to the end of 2008.

Also this week, Zimmer announced the completion of the development of its operating plan for next year and forecast sales of $3,820 million to $3,840 million in 2007, an increase of approximately 10 per cent over 2006.

The company has predicted a growth of 15 per cent in adjusted diluted earnings per share (EPS), expecting an EPS of between $3.89 and $3.91.

Ray Elliot, chairman, president and chief executive officer of Zimmer, said: “We will continue to look for acquisitions that meet our demanding criteria, but share repurchases give us an additional option for taking advantage of our continued strong cash flow with the expectation of building shareholder value.”

In November, Mr Elliot told the company’s board of directors that he intends to retire as president and chief executive officer of Zimmer during the first half of 2007. He added that he will continue to be chairman of the company till at least November next year.