Zimmer Holdings, Inc. (Zimmer) has reported net sales of $1.02 billion for the second quarter of 2009, down 6%, compared with the net sales of $1.08 billion in the year-ago quarter. It also posted net earnings of $210.1 million, or $0.98 per diluted share, for the second quarter of 2009, compared with the net earnings of $227.4 million, or $0.99 per diluted share, in the year-ago quarter.
Guidance
The company reaffirmed its full year 2009 sales and earnings guidance. Full year revenues for 2009 are expected to increase between 1% and 3% on a constant currency basis. Assuming foreign currency exchange rates remain consistent with current levels, the company estimates that foreign currency translation will reduce revenue for 2009 by approximately 2.5%. Full year 2009 adjusted diluted earnings per share are projected to be in a range of $3.85 to $4.00.
Net earnings for the first six months of 2009 were $412.3 million on a reported basis and $425.5 million on an adjusted basis, a decrease of 11.6% adjusted from the prior year period.
During the quarter, the company utilized $36 million of cash to acquire 0.8 million shares under its $1.25 billion repurchase program. At the end of the quarter, $797 million of share repurchase authorization remained available under this program, which expires on December 31, 2009.
Our second quarter results provide further evidence that we are successfully stabilizing our business and making progress toward restoring positive momentum, said David Dvorak, Zimmer president and chief executive officer. We achieved sequential improvement in revenue on a day-rate basis for the quarter in six of our seven product categories, including Knees and Hips. We are once again reaffirming our 2009 sales and earnings guidance.