28. Biomet
$2.7 Billion
KEY EXECUTIVES:
Jeffrey R. Binder, President & CEO
Daniel P. Florin, Sr. VP & Chief Financial Officer
Glen A. Kashuba, Sr. VP, President, Trauma & Spine
Jon C. Serbousek, Sr. VP, President, Orthopedics
Maggie Anderson, Sr. VP, President, Biomet 3i
Renaat Vermeulen, Sr. VP, President, Europe, Middle East and Africa
NO. OF EMPLOYEES: 7,000
GLOBAL HEADQUARTERS: Warsaw, Ind.
Thanks to a particularly successful fourth quarter, Biomet Inc. achieved an 8 percent (7 percent constant currency) increase in net sales in fiscal 2010, to $2.7 billion. Adjusted net income was $241.5 million, compared with $158.1 million in fiscal 2009. Reported operating income totaled $357 million, a nice turnaround compared with fiscal 2009’s $348 million operating loss. Adjusted operating income increased 7 percent, to $839 million. Free cash flow also improved, up to $135 million from $59 million in fiscal 2009.
In the first quarter (ended Aug. 31, 2009), Biomet’s net sales increased 4 percent compared with fiscal 2009, to $630 million worldwide. United States sales increased by nine percent, to $400 million. European sales decreased nine percent to $154.8 million. International sales (primarily Canada, South America, Mexico and the Pacific Rim) increased 9 percent to $75.1 million.
Second quarter (ended Nov. 30, 2009) net sales increased 8 percent to $696 million worldwide. United States sales increased eight percent to $408.2 million. European sales increased 6 percent to $206.2 million and International sales increased 20 percent, to $81.2 million. Segment growth was similar to the previous quarter, with reconstructive sales being the biggest earner, totaling $528.4 million.
Third quarter (ended Feb. 8, 2010) net sales increased 9 percentto $670 million worldwide. United States sales increased by 6 percent, to $412.6 million. Sales in Europe increased 8 percent to $181.4 million, and international sales increased 28 percent to $75.8 million. Reconstructive sales totaled $508 million. Fixation, spine and other sales totaled $58 million, $54 million and $47 million, respectively.
Fourth quarter (ended May 21, 2010) net sales increased 10 percent to $703 million. Reconstructive sales totaled $525 million. United States sales increased by 8 percent to $423 million. Sales in Europe increased 4 percent to $186 million. International sales increased 36 percent to $93 million. Fixation, spine and other sales totaled $62.5 million, $62 million and $53 million, respectively.
“We made great progress during fiscal 2010,” said Jeffrey R. Binder, president and CEO. “Our consolidated sales growth accelerated in the fourth quarter, contributing to very healthy sales results for our full fiscal year. Double-digit sales growth for orthopaedic reconstructive products continued to drive our top line performance during the quarter and year, and allowed us to capture additional share gains in this important market during fiscal 2010.”
Reconstructive products were consistently the top earner for Biomet’s fiscal year 2010. Sales grew 9 percent over fiscal 2009, to $2 billion. Net sales for hips grew 7 percent; knees grew 13 percent; extremities grew 29 percent; dental decreased 2 percent; and other categories grew 10 percent. Fixation, spine and other product sales grew by 2 percent, 6 percent and 1 percent, respectively.
Biomet’s only acquisition for fiscal 2010 was the purchase of assets of Foster City, Calif.-based Cartilix, a cartilage repair company that was founded in 2004 and developed ChonDux, a proprietary cartilage regeneration technology for knee repair. The deal, designed to bolster Biomet’s sports medicine franchise and expand its portfolio of knee solutions, did not have any affect on fiscal 2010 income, as ChonDux was not yet commercially available.
The company did not forget its philanthropic side in fiscal 2010; Biomet donated $3.1 million in medical devices to the Haitian relief effort after a 7.0-magnitude earthquake struck the country in January 2010.
Devices included both pediatric and adult orthopedic trauma and fracture management devices, and 16,000 braces designed to help patients with leg fractures regain mobility while their injuries heal.
“As we exit each fiscal year, I take time to reflect on how gratifying it is to lead a business that helps to improve the lives of the patients who need our products,” Binder said. “More than 1,000,000 times a year, we help one surgeon provide personalized care to one patient. As we enter fiscal 2011, I see great opportunities for Biomet to continue to fulfill this mission.”
