Biomet 3Q Loss Narrows On Fewer Charges, Higher Revenue

   DOW JONES NEWSWIRES 
 

Biomet Inc.'s fiscal third-quarter loss narrowed as the company reported higher revenue and margins, while year-earlier results were stung by write-downs and merger-related expenses.

Biomet's results are watched closely because it reports before bigger rivals such as Zimmer Holdings Inc. (ZMH) and Stryker Corp. (SYK), though the data are an imprecise sector gauge. The maker of hip- and knee-surgery devices and spinal procedure products was taken private in 2007.

For the quarter ended Feb. 28, Biomet posted a loss of $33.1 million, compared with a year-earlier loss of $578.3 million. Last year's losses came amid write-downs and merger-related expenses even as sales grew. Excluding the write-downs a year earlier and stock-compensation costs in both periods, Biomet would have reported a profit of $67.3 million, up from $44.1 million a year earlier.

Revenue jumped 8.9% to $669.8, and rose 6% excluding the effect of foreign currency.

Gross margin rose to 70.9% from 69.7%.

In the U.S., where Biomet does most of its business, sales increased 6%. Reconstructive sales, which make up the vast majority of Biomet's revenue, climbed 12%, and rose 8% excluding the impact of currency.

-By Matt Jarzemsky and John Kell, Dow Jones Newswires; 212-416-2240, [e-mail]