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Profit rises 23 percent at Zimmer

Staff, news services Published: July 28, 2011 3:00 a.m.

Zimmer Holdings Inc. on Wednesday reported second-quarter earnings of $203.8 million, or $1.06 per diluted share, a 23 percent increase over the $165.5 million, or 82 cents per share, posted for the same three months of 2010.

The Warsaw-based orthopedic devices maker also reported second-quarter net sales of $1.14 billion.

During the quarter, the company set aside an additional $50 million provision for known and anticipated claims related to the Durom Acetabular Component, also referred to as the Durom Cup.

During last year’s second quarter, Zimmer used $75 million in profits to establish a fund to pay claims related to the hip replacement part, which the company voluntarily stopped marketing and distributing in the U.S. Most of the company’s earnings gain this year can be attributed to the $25 million difference in claims provisions.

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