Zimmer Biomet Announces Leadership Transition

By Peter Loftus Features Dow Jones Newswires

Medical-device maker Zimmer Biomet Holdings Inc. said David C. Dvorak stepped down as chief executive and director effective Tuesday, as the company struggles to boost sales and profits amid production problems.

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Zimmer, a Warsaw, Ind., maker of orthopedic devices and dental implants, also said it expects to report second-quarter sales growth below its prior forecast, with adjusted earnings at or near the low end of its forecast range.

Zimmer's chief financial officer, Dan Florin, was given the added duties of interim CEO and director until a permanent CEO is name. Zimmer said it has hired a search firm to find a new CEO.

The company didn't say why Mr. Dvorak stepped down; a Zimmer spokeswoman didn't return calls or emails seeking comment.

Jefferies analyst Raj Denhoy said there had been speculation that Mr. Dvorak's job was in jeopardy because of the company's poor performance recently. He said the company had previously predicted that certain production problems would be resolved in the second quarter, but they weren't.

In a press release, Mr. Florin said the company did increase production at a plant in Warsaw, but "certain brands did not achieve targeted production levels as quickly as anticipated."

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Mr. Dvorak served as CEO and director since 2007. He oversaw Zimmer's acquisition of crosstown rival Biomet in 2015 for about $14 billion.

Write to Peter Loftus at peter.loftus@wsj.com

(END) Dow Jones Newswires

July 11, 2017 19:11 ET (23:11 GMT)