Zimmer ($ZMH) eked out a 1.1% revenue increase in the fourth quarter, but declining sales for its reconstructive devices and a spike in expenses brought profits down 2%.
Zimmer netted $152.8 million on the quarter, down from $156.6 in the same period last year, and pulled in $1.18 billion in revenue over 2011's $1.17 billion. To blame: a 1% revenue drop for Zimmer's reconstructive products, fueled by flat sales for knee replacements and a 2% decline for its hip implants.
But some of Zimmer's smaller units posted big gains on the quarter, as the company reported 18% growth for its surgical devices, reaching $109.8 million, and a 7% jump for extremities reconstruction, which brought in $46.8 million.
Looking forward, Zimmer is predicting its 2013 revenue to grow between 2.5% and 4% over last year, in part because of a restructuring plan the company says will save about $80 million. The company didn't get into details but said its efforts will help it absorb the 2.3% medical device tax and support new product development.
In the past, Zimmer has said it plans to cut 450 jobs to deal with the tax, and the company has already started its streamlining process, announcing that it will shut down its Austin, TX, plant and integrate the operation into its Twin Cities hub.
- read Zimmer's results