First-quarter sales for Biomet Inc. rose nearly 4 percent, but net losses widened more than 120 percent to $39 million. In fact, excluding the effect of foreign currency exchange, sales were broadly flat. U.S. net sales actually decreased 1% to $414.7 million during the first quarter, while Europe net sales increased 8% (decreased 3% when adjusted for constant currency) to $148.5 million. Meanwhile International (primarily Canada, South America, Mexico and the Pacific Rim) net sales increased 20% (9% constant currency) to $101.4 million.
Biomet Inc.’s first-quarter losses widened significantly, the privately owned orthopedics giant posting losses of $39 million on sales of $665 million during the quarter, up 120.2 percent over Q1 2011. However, operating income as a percentage of net sales held firm at 10.9%, suggesting that the company is not having to spend proportionately more at a sales, marketing and administrative level in order to protect it’s revenue position.
President & CEO Jeffrey Binder stated “We executed well with our new product launches in hips during the quarter and we’re pleased with the improved sales results. We expect to see similar improvements in our knee performance later this year and into next year as we launch several meaningful new products in the second half. We were pleased to post 8 percent worldwide constant currency growth in a product category that delivered more than $300 million in sales during fiscal 2011, despite an uncharacteristically soft domestic quarter in our sports medicine business. We were also pleased with the 9 percent constant currency sales growth in our International business during the quarter.”
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