Wright Medical buoyed by strong international sales

The Commercial Appeal
Feb 19, 2010
By Toby Sells, sells@commercialappeal.com

Strong international sales helped Wright Medical Group Inc. end its year and fourth quarter in better shape than it was in a year ago, according to company officials.

The Arlington-based medical device maker saw sales of $487.5 million in 2009, a nearly 5 percent increase over the $465.5 million it made in 2008.

Sales were $129.9 million for the fourth quarter, which ended Dec. 31, up 8 percent over fourth-quarter 2008 sales of $120.1 million.

Net incomes improved for the year and quarter, though both were plagued as they were in 2008 by restructuring charges associated with closing a facility in France and costs associated with a continuing, industrywide federal investigation.

Wright reported $12.1 million in net income for the year and $2.2 million for its final quarter. It reported $3.1 million in net income for 2008 and a $2.7 million net loss for fourth-quarter 2008.

The company's international sales grew 14 percent in 2009, much of it attributed to the company's portfolio of products for hands, feet and ankles and the opening of its Australian subsidiary.

Wright CEO Gary Henley said U.S. sales were affected by the economic downturn. Domestic sales only grew 5 percent in 2009, compared to 19 percent in 2008.

"Despite the challenges, extremities performed very well with a 21 percent increase, which marks the eleventh straight quarter of double-digit growth for the franchise," Henley said.

The company set its 2010 sales guidance between $515 million and $530 million.

Lance Berry, Wright's new CFO, said the company increased its sales force last year and will continue to do so in 2010.

Wright Medical Group Inc.

Domestic sales 2009: $299.5 million

International sales 2009: $187.9 million

Total biologics sales: down 4 percent to $79.1 million

Web site: www.wmt.com