Zimmer Holdings, Inc. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2014. For the quarter, the company reported net sales of $1,222.9 million against $1,240.7 million a year ago. Operating profit was $225.8 million against $315.3 million a year ago. Earnings before income taxes were $194.2 million against $303.0 million a year ago. Net earnings of the company were $156.6 million or $0.91 per diluted share against $235.9 million or $1.36 per diluted share a year ago. Adjusted net earnings were $295.6 million against $288.6 million a year ago. Adjusted diluted EPS was $1.71 against $1.66 a year ago. Operating cash flow for the quarter amounted to $354.2 million, an increase of 18% over $342 million in the fourth quarter of 2013. The increase is driven by primarily by improved collections of accounts receivable in certain European countries and a collection of an insurance recovery pertaining to prior-period product liability claims. Capital expenditures for the quarter totaled $83.7 million, including $34.5 million for instruments and $49.2 million for property, plant and equipment. Adjusted operating profit in the quarter amounted to $404.6 million or 33.1%.

For the full year, the company reported net sales of $4,673.3 million against $4,623.4 million a year ago. Operating profit was $1,034.7 million against $1,035.6 million a year ago. Earnings before income taxes were $943.9 million against $981.1 million a year ago. Net earnings of the company were $720.1 million or $4.19 per diluted share against $759.2 million or $4.43 per diluted share a year ago. Net cash provided by operating activities was $1,052.8 million against $963.1 million a year ago. Additions to instruments were $197.4 million against $192.9 million a year ago. Additions to other property, plant and equipment were $144.9 million against $100.0 million a year ago. Adjusted net earnings were $1,041.0 million against $988.4 million a year ago. Adjusted diluted EPS was $6.06 against $5.75 a year ago.

The company expects revenues for the first quarter of 2015 to increase between 1.5% and 2.5% on a billing day and constant currency basis over the prior year period. The company estimates that foreign currency translation will decrease revenues by approximately 6.0% for the first quarter of 2015. First quarter 2015 diluted earnings per share are projected to be in a range of $1.12 to $1.14 on a reported basis and $1.58 to $1.60 on an adjusted cash basis. The company expects gross margin ratio to be between 73.5% and 74%. The company anticipates an adjusted effective tax rate to be between 26% and 26.5%. The company expects amortization during this first quarter to be $24 million or approximately $0.10 per share after tax. Therefore, 2015 first quarter adjusted diluted earnings per share are projected to be in a range of $1.58 to $1.60.