Zimmer Reports Fourth Quarter and 2007 Financi...(15 % Cost of products sold ...),Health

Cost of products sold 253.9 207.5 22

Gross Profit 819.6 726.1 13

Research and development 50.8 45.6 11

Selling, general and administrative 401.2 345.6 16

Acquisition, integration and other

expense 15.7 (3.4) 576

Operating expenses 467.7 387.8 21

Operating Profit 351.9 338.3 4

Interest income, net 1.1 1.5 (31)

Earnings before income taxes and

minority interest 353.0 339.8 4

Provision for income taxes 89.0 95.0 (6)

Minority interest (0.2) (0.1) (104)

Net Earnings $263.8 $244.7 8

Earnings Per Common Share

Basic $1.13 $1.03 10

Diluted $1.12 $1.02 10

Weighted Average Common Shares

Outstanding

Basic 233.3 238.5

Diluted 234.8 241.0

ZIMMER HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2007 and 2006

(in millions, except per share amounts)

2007 2006 % Inc/(Dec)

(unaudited)

Net Sales $3,897.5 $3,495.4 12 %

Cost of products sold 875.9 780.1 12

Gross Profit 3,021.6
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