Zimmer Biomet Holdings, Inc. announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2017. For the quarter, the company reported net sales were $2,074.3 million compared with $2,013.1 million a year ago. Operating loss was $22.9 million against profit of $183.3 million reported last year. Loss before income taxes were $109.2 million against profit of $30.8 million reported last year. Net earnings of Zimmer Biomet Holdings, Inc. of $1,257.2 million or $6.16 per diluted share compared to net earnings of Zimmer Biomet Holdings, Inc. of $69.6 million or $0.34 per diluted share a year ago. Adjusted net earnings were $428.5 million or $2.10 per diluted share against $434.1 million or $2.14 per diluted share reported last year.

For the year, the company reported net sales were $7,824.1 million compared with $7,683.9 million a year ago.  Full-year revenues increased by 0.5% over the prior year on a constant currency basis, excluding approximately 130 basis points of contribution from the LDR Holding Corporation acquisition.  Diluted earnings per share for the full year were $9.03.  Adjusted diluted earnings per share for the full year were $8.03, an increase of 0.9% over the prior year. Operating profit was $823.2 million against $825.9 million reported last year. Earnings before income taxes were $479.6 million against $399.6 million reported last year. Net earnings of Zimmer Biomet Holdings, Inc. of $1,839.6 million or $9.03 per diluted share compared to net earnings of Zimmer Biomet Holdings, Inc. of $305.9 million or $1.51 per diluted share a year ago. Net cash provided by operating activities was $1,582.3 million compared with $1,632.2 million a year ago. Additions to other property, plant and equipment was $156.0 million compared with $184.7 million a year ago. Adjusted net earnings were $1,636.4 million or $8.03 per diluted share against $1,610.8 million or $7.96 per diluted share reported last year.

For the quarter, the company announced goodwill impairment of $272.0 million.

For the first quarter of 2018, the company expects revenue in the range of $1.955 billion to $1.995 billion, representing a change of negative 1.0% to positive 1.0% compared to the prior year period, and negative 4.0% to negative 2.0% on a constant currency basis compared to the prior year period, inclusive of negative impact related to approximately one less billing day compared to the prior year period. Additionally, the company expects its diluted earnings per share for the first quarter of 2018 to be in a range of $0.73 to $0.88, and in a range of $1.84 to $1.91 on an adjusted basis. The effective tax rate expected to be in the range of 19% to 20%. Free cash flow expected to be in the range of $250 million to $300 million.

For first quarter and the full year of 2018, gross margin rate will be in a range between 72% and 73%, likely towards the lower end of that range in the first quarter of 2018 and improving slightly in subsequent quarters. Gross margin rate will be a significant headwind for the company in the first half of 2018 compared to the first half of 2017, and then should normalize in the second half of 2018 as its anniversary into the North Campus variances. The company expects full year of 2017 adjusted effective tax rate to be in the same range as the first quarter of 2018, between 19% and 20%.