Orthopedic implant manufacturer Zimmer Holdings reported a 1.4% drop in revenue to $1.22 billion in the fourth quarter of 2014 as worldwide sales of hip and knee implants decrease.
Net income fell 33% to $156.6 million in the quarter that ended Dec. 31 compared with the same period in 2013. The Warsaw, Ind.-based company's results were also dampened by currency fluctuations.
Annual sales edged up 1.1% to $4.67 billion in 2014 compared with 2013, but net income for the year dropped to $720.1 million, down 5.3% from 2013.
The medical-device sector is consolidating as manufacturers seek strategies to offset pricing pressure from U.S. hospitals. At least three billion-dollar deals, including Zimmer's upcoming acquisition of competing orthopedic devicemaker Biomet, were announced in 2014.
Zimmer's $13.35 billion deal for Biomet is expected to close early this year. The combined company will be called Zimmer Biomet and will create a “more comprehensive and diversified musculoskeletal portfolio for our customers, including attractive cross-selling opportunities,” Zimmer CEO David Dvorak said during a call Thursday with investors.
Revenue in Zimmer's Americas market, which makes up half of total sales for the company, decreased by 2% to $678 million in the last three months of 2014 compared with the fourth quarter of 2013. Hip-implant sakes were down 5% in the Americas market to $155 million. Revenue for Zimmer's knee implants was flat at $307 million, and sales of spine devices rose 6% to $56 million.
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