Zimmer cuts 2008 outlook on weak sales forecast

Orthopedic implant maker Zimmer Holdings Inc. lowered its full-year outlook Tuesday, citing an anticipated decline in hip product sales, weakness in the dental market and slower-than-expected-uptake with its new products.

The company expects adjusted profit between $4.05 and $4.10 per share, down from prior guidance between $4.20 and $4.25 per share. Analysts polled by Thomson Financial expect profit of $4.19 per share.

Zimmer now expects sales to rise between 8.5 percent and 9 percent, instead of between 10 percent and 11 percent. That implies expectations for revenue between $4.23 billion and $4.25 billion. In 2007, the company had revenue of just under $3.9 billion. Analysts polled by Thomson Financial forecast full-year revenue of $4.28 billion, on average.

Shares of Zimmer fell $5.98, or 8.4 percent, to $64.90 in after-hours trading. The stock rose 52 cents to close at $70.88.