New Orthofix Spine Boss Needs To Breathe Life Into Division As Other Businesses Show Revenue Growth.

Orthofix’s financials are solid if unspectacular with healthy revenue growth in orthopaedics and sports medicine its shining stars.

In short

More financial reporting this week with the release of Orthofix’s 4th Quarter and Full Year figures.  Total revenue figures were up 6% for the quarter on a constant currency basis, with Orthopaedics and Sports Medicine showing impressive growth, offset by Spine’s flat performance.

New Spine Boss

Since it released these figures the company has also announced a new spine boss in the form of Brad V. Niemann as Senior Vice President, Commercial Operations for the Global Spine business unit. In this position, Mr. Niemann will focus on managing the commercial operations of the Company’s Stimulation business. Mr. Niemann comes to Orthofix with over 14 years of experience and success in the industry.

Full Year Growth Modest

Returning to the figures, for the full year the company reported revenue of $579M, an increase of 2.5% over prior year, with a slightly less favourable cost of goods sold position resulting in marginal income growth of only 1.65% to $440M.

Looking forward the company expects to generate between $595 million and $605 million in net sales or approximately 3% to 5% growth over reported net sales in 2011. If foreign currency rates hold near current levels, the Company anticipates reported growth to be negatively impacted by 1.0% to 1.5%.

The Company expects approximately 7% to 11% increase in net income per diluted share compared to 2011.

Company comments

Robert Vaters, President and Chief Executive Officer, commented, “2011 was an important year of transition for the Company highlighted by several key achievements that together represent an important point of inflection for the Company. We are now well positioned to focus on long term revenue growth across our Regenerative and Repair product platforms, all while continuing to deliver on our commitment of growing our earnings in excess of our sales.”

About the new spinal appointment he commented; “We are thrilled to announce the addition of Mr. Niemann to our management team. With his leadership and expertise we will strengthen our ability to execute our business strategy of returning to growth in our regenerative stimulation business.”

The full report can be found here.

Source: Orthofix

 

published: March 1, 2012 in: Financial, Orthofix, Orthopaedics, People, Spine, Sports

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