WARSAW, Ind. (AP) ¿ Orthopedic products maker Zimmer Holdings Inc. said Thursday its profit fell 16 percent in the first quarter due to one-time expenses and weaker sales of devices used in reconstructive surgeries. Zimmer said its sales to other countries were hurt by the stronger dollar, and revenue from most of its major product categories decreased. The company earned $202.2 million, or 91 cents per share, compared with a larger profit of $239.3 million, or $1.02 per share a year ago. Excluding one-time items like acquisition costs and inventory step up charges, it reported a profit of 95 cents per share. Its revenue fell 6 percent, to $992.6 million from $1.06 billion. Thomson Reuters says analysts were looking for 94 cents per share and $1 billion in revenue. Sales of reconstructive products slid 7 percent to $762 million. Also falling were sales of knee products, which decreased 5 percent to $429 million, and hip devices, which were down 9 percent to $300 million. Sales of dental products also fell, while trauma and spinal product revenue increased.
Zimmer's European revenue fell 13 percent due to unfavorable foreign currency exchanges, while revenue in the Americas fell 2 percent and Asia-Pacific revenue slipped 9 percent. Excluding the impact of the stronger dollar, it said total sales were down only 1 percent. The company said the results were on par with its expectations, and it maintained its profit and revenue forecasts for the year. Zimmer called for an adjusted profit of 3.85 to $4 per share, with revenue rising between 1 percent and 3 percent from its 2008 total of $4.12 billion, excluding the impact of foreign currency exchanges. Currency exchanges are expected to reduce its sales by about 4 percent. Analysts expect a profit of $3.88 per share and revenue of $4.03 billion. In morning trading, Zimmer shares picked up 50 cents to $42.79.