Biomet 4Q Sales Up 3.4% on Sports Medicine Growth
06/15/2012| 12:36pm US/Eastern
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--Biomet 4Q sales rise 3.4% on increases in sports medicine segment
--Company watched as indicator of how others in industry will perform
--Orthopedics stocks rise in recent trading
NEW YORK--Biomet Inc.'s preliminary fiscal fourth-quarter sales rose 3.4%, driven by strong sales in the sports medicine segment of the orthopedic medical-device maker and a more modest increase at its much-bigger large joint reconstructive segment.
Though privately held, Biomet's results are closely watched because the company reports earlier than larger competitors--such as Zimmer Holdings Inc. (ZMH), Stryker Corp. (SYK) and Johnson & Johnson (JNJ)--and could foreshadow industry trends. In Friday's trading, shares of Zimmer and Stryker rose 4% and 2.6%, respectively. J&J was up a fraction to $65.66.
"While the group has not always tracked perfectly with Biomet, the results last quarter were directionally consistent with improving market trends, and therefore we are encouraged by the continued sequential improvement from Biomet," Matt Miksic, an analyst at Piper Jaffray & Co. said in a note.
In particular, the U.S. market for replacement hips and knees, which in the past has been hurt by people putting off surgeries amid high unemployment, showed improvement. U.S. knee sales rose 6% in the quarter, while hips were up 8%. Global sales in the segment edged up 3% to $439.6 million.
For the period ended May 31, Biomet's net sales were $739.5 million, up from $715.2 million the year before. Biomet said its U.S. revenue rose 7%, while its European sales were down 8%, or down 2% at constant currency.
Biomet's sales growth was led by its sports, extremities and trauma segment, which posted a 14% increase to $96.2 million. Its extremities business drove growth within the segment, up 20% world-wide and 29% in the U.S.
--Victoria Stilwell contributed to this article.
Write to Anjali Athavaley at anjali.athavaley@dowjones.com
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