Stryker earnings drop 70 percent in 3Q13
Stryker Corporation in Kalamazoo has released its earnings for the third quarter of fiscal 2013.
Stryker (NYSE: SYK) reported net earnings last week of $103 million, or 27 cents per diluted share, for the quarter — a decrease of 70.8 percent compared to the prior year.
The earnings reflect charges for recalls, $315 million, and acquisitions-related costs, $15 million, during the quarter.
Stryker also reported third-quarter sales of $2.15 billion, a 4.8-percent increase over the same quarter last year.
Stryker's president/CEO, Kevin A. Lobo, said he's "pleased with our strong third-quarter sales growth."
"We believe these results not only represent gradual improvement in our key markets, but also underscore our commitment to delivering above market growth," Lobo said.
He added that Stryker is "on track" to meet its full year adjusted EPS guidance of $4.20 to $4.26.
Among its product lines, Stryker reported that reconstructive products sales in the quarter increased 6.5 percent, or 9.2 percent in constant currency. MedSurg sales increased 1.5 percent, or 2.6 percent constant currency. Neurotechnology and spine sales increased 7.7 percent, or 10 percent in constant currency.
Net sales in the quarter were reduced 0.9 percent by changes in price and by 2 percent due to the unfavorable impact of foreign currency exchange rates. Excluding the impact of the cost of acquisitions, net sales increased 6.1 percent in constant currency over the prior year.
Cash flow from operations has increased 14.4 percent in the first nine months of the year.
Organic sales growth for the full year 2013 is projected to be in the range of 4.5 percent to 5.5 percent. Stryker said that if foreign currency exchange rates hold near current levels, net sales in both the fourth quarter and full year of 2013 is expected to be reduced by approximately 1.5 to 2 percent.