Zimmer Reports Fourth Quarter and 2007 Financi...(/p Asia Pacific ...),Health

Asia Pacific 197 18 13

Total 1,637 12 9

Hips

Americas 630 9 8

Europe 468 12 4

Asia Pacific 201 5 3

Total 1,299 9 6

Extremities 104 34 31

Dental 221 23 20

Trauma 206 6 3

Spine 197 11 10

OSP and other 234 8 6

Net earnings for the fourth quarter were $264 million on a reported basis and $276 million on an adjusted basis, an increase of 13% adjusted over the prior year period. Net earnings for the full year 2007 were $773 million on a reported basis and $962 million on an adjusted basis, an increase of 14% adjusted over the prior year.

Guidance

Full year 2008 net sales are expected to be approximately 10 to 11% over 2007, including an approximate favorable foreign currency impact of 2%. Adjusted diluted earnings per share for the full year 2008 are expected to be $4.20 to $4.25, reflecting an increase of approximately 4 to 5% over prior year. The guidance reflects the expected costs for a number of ongoing infrastructure and operating initiatives, including upgrades to the Company's U.S. sales and distribution capabilities, such as inventory tracking and instrumentation; enhancements to information technology and quality systems; increased investments in sales force and other marketing programs in the Spine, Dental and Trauma business units; and start-up costs for an expansion of worldwide manufactu
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