Symmetry Medical (SMA) Lowers FY09 Sales, EPS Outlook

October 26, 2009 9:07 AM EDT

Symmetry Medical Inc. (NYSE: SMA) lowers its FY09 sales guidance from $385-$405 million to $355-$365 million, versus the consensus of $391.28 million. EPS guidance for the year moves from $0.77-$0.85 to $0.63-$0.68. The Street is currently looking for FY09 EPS of $0.80.

Brian Moore, President and CEO of Symmetry Medical, stated, "In anticipation of a softer overall orthopaedic market in the second half of 2009, we had previously guided for a decrease in revenue and proactively implemented cost adjustments to maintain our earnings goals. Since our previous guidance announcement, and particularly in recent weeks, we have experienced greater than anticipated order reductions. We believe this change in order flow will result in a significant shortfall to our revenue and earnings per share, primarily in the fourth quarter."

Mr. Moore continued, "Despite this recent volatility across all segments of the business, we are encouraged by gains in market share we have realized as our customers consolidate suppliers and focus on assuring product quality and supplier stability. Our customers' recent quarterly results highlight their inventory utilization. While this created negative implications for our business in the near term, it should bode well for Symmetry in the future. In addition, our customers have placed a much renewed emphasis on supply chain management and have engaged us in discussions on our contribution to this process. We see these expanding relationships resulting in a mid to long term positive impact on our business."

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