30 Day Trial
BARE BONES logo

BARE BONES content is posted to these pages in real time.

Monthly compilations are available in PDF form.

Product / Company Performance

DJO Global 3Q17 Revenue -

DJO Global posted 3Q17 revenue of US $290.9MM, +1.3% vs. 3Q16, and YTD revenue of $873.9MM, +1.7% vs. the prior year.

ORTHOWORLD estimates segment sales and growth as follows.

  3Q17  3Q16  $ Change  % Change 
 Joint Reconstruction $61.7  $50.2  $11.5  22.9% 
  Knee $16.7  $13.5  $3.2  23.8% 
  Hip $14.5  $11.7  $2.8  24.2% 
  Extremities $30.5  $25.0  $5.5  21.8% 
 Other* $229.2  $237.0  -$7.8  -3.3% 
Total  $290.9  $287.2  $3.7  1.3% 

 

  9Mo17  9Mo16  $ Change  % Change 
 Joint Reconstruction $182.7  $151.6  $31.1  20.5% 
  Knee $48.9  $39.9  $9.0  22.5% 
  Hip $43.6  $34.6  $9.0  25.9% 
  Extremities $90.2  $77.1  $13.1  17.0% 
 Other* $691.3  $707.4  -$16.1  -2.3% 
Total  $873.9  $858.9  $15.0  1.7% 

*Includes Bracing/Vascular, Recovery Sciences and also International revenue not already attributed to Joint Recon


As in the 2Q17 call, not much time was spent in direct commentary on the orthopaedic segment, though it was reiterated that the Surgical Implant business should continue to be a significant, profitable, long-term growth driver. Weather was cited as having a -$1MM impact on the quarter; many of those cases are expected to be rescheduled.

More time was spent on the business transformation initiative, which encompasses the whole company. Specific impact on joint reconstruction has not been separated out, but we can generally affirm that:

  • DJO finds itself on track to achieve 7% to 10% cost savings by the end of 2018
  • They continue to pursue the goal of reducing SKUs from 44,000 to 22,000 at the end of 2017 (again—I have not located information to indicate which business segments are affected); for SKUs to-be-eliminated, upstream supply chain processes are shut down and inventory levels being sold through
  • At the close of 3Q, the company was down net 130+ professional staff vs. year-end 2016; five new business process outsourcing partners have onboarded over 500 new employees, and DJO is now processing many of its transactions through those centers (such as finance, accounting,customer care, sales, IT, Office Care reimbursement, etc.), focusing on centralization, standardization, automation and modernization of processes


The transformation initiative, launched in 2017, seeks to delivery productivity improvements throughout the company.

Sources: DJO Global; ORTHOWORLD Inc. estimates

This article is a Member-only item of content. Members, please log in to read the complete post.
If you are not yet a Member, click here to learn more about purchasing ORTHOWORLD Membership.