Biomet posted a 9% sales hike last quarter thanks largely to its $280 million acquisition of DePuy's trauma business, but a ramp-up in costs and a hefty impairment charge rocketed its net loss up about 184%.
The Warsaw, IN, company pulled in $771.5 million in revenue on the quarter, a boost over the previous year's $708.9 million, but a $344.1 million goodwill and intangible assets impairment charge dragged those gains down, and Biomet finished the quarter with a $304.5 million loss.
Thanks to the DePuy buyout, which closed around the world in December, Biomet's trauma business grew 291% over the previous year, contributing to a $161.4 million sales quarter for the sports, extremities and trauma unit.
Large joint reconstructive, Biomet's largest business covering hip and knee implants, posted flat sales of $423.9 million on the quarter, while the company's spine and bone healing business declined 4% to $72.1 million.
Biomet spent the past 9 months or so deciding whether to spin off its dental unit, 3i, announcing this month that it had scrapped those plans. The business continued its downward motion in the last quarter, declining 2% to $64.4 million.
The Indiana devicemaker reports its quarterly financials a bit ahead of competitors like Stryker ($SYK) and Johnson & Johnson ($JNJ), making a Biomet results release something of a preview at how the industry did over the past three months. So, if Biomet's quarter is any indication, the market for joint replacements appears to be sluggish as ever.
- read Biomet's full results