Zimmer reports 6% increase in sales for 2006

Zimmer has announced that its net sales for the 2006 financial year increased by six per cent to $3.5 billion (1.8 billion pounds). Excluding the effect of share-based payment, net earnings for the year increased by 16 per cent during 2006, reaching $897 million.

The company attributed this increase in sales to “key” new products, specifically the Gender Solutions knee, in addition to the Trabecular Metal primary hip prosthesis and acetabular revision systems, the Durom acetabular cup with Metasul LDH large diameter heads and others.

Following the publication of these results, Zimmer has increased its sales and adjusted earnings per share guidance for the forthcoming year.

The company now forecasts its sales for 2007 to be approximately $3.85 billion, with adjusted diluted earnings per guidance for the full year increasing by $0.05 to $3.95.

Ray Elliot, chairman, president and chief executive officer of Zimmer, said: “During the year, we experienced a tremendous flow of new products and reached a Zimmer recorded 24 per cent of sales coming from new products, including $229 million in the fourth quarter.”

He added that the company had adopted a number of corporate strategic initiatives at the end of last year designed around the slogan “Enable, Innovate and Grow”, with Zimmer focusing on nine separate mandates to back these new initiatives.

Zimmer recently announced that Mr Elliot would be presenting the company’s business at the Merrill Lynch Global Pharmaceutical, Biotechnology and Medical Device Conference taking place in New York on February 7th 2007.