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Stryker Sales Up 8%, Profits Up 10%

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Kalamazoo-based Stryker Corp. (NYSE: SYK) reported net income of $319 million or 80 cents a share in the second quarter ended June 30, up 10 percent from $291 million or 73 cents a share in the same quarter a year earlier.

Sales rose 8 percent to $1.76 billion.

“Our second quarter results reflect the underlying strength of our diverse product offering and global presence, which is allowing us to continue to deliver on the goals we outlined at the start of 2010,” said Stryker chairman, president and CEO Stephen P. MacMillan.

Domestic sales were $1.16 billion, up 11 percent, the result of higher shipments of orthopaedic implants and medical and surgical equipment.

International sales were $598 million for the second quarter of 2010, representing an increase of 1.8 percent. The impact of foreign currency comparisons to the dollar value of international sales was favorable by $11 million in the second quarter of 2010. On a constant currency basis, international sales were flat in the second quarter of 2010, as a result of higher shipments of MedSurg Equipment partially offset by lower shipments of Orthopaedic Implants.

Worldwide sales of orthopaedic implants were $1.04 billion for the second quarter of 2010, an increase of 2.2 percent. On a constant currency basis, sales of orthopaedic implants increased 1.4 percent in the second quarter of 2010, based on higher domestic shipments of hips, knees, and trauma implant systems.

Worldwide sales of what Stryker calls “MedSurg Equipment” were $722 million for the second quarter of 2010, an increase of 16.4 percent. On a constant currency basis, sales of MedSurg Equipment increased 15.9 percent in the second quarter of 2010, based on higher shipments of surgical equipment and surgical navigation systems, endoscopic and communications systems and patient handling and emergency medical equipment as well as sales growth through acquisitions.

The financial forecast for 2010 remains unchanged and includes a constant currency net sales increase of 5 to 8 percent as a result of growth in shipments of Orthopaedic Implants and MedSurg Equipment. If foreign currency exchange rates hold near June 30 levels, the company anticipates an unfavorable impact on net sales of approximately 1 to 2 percent in the third quarter of 2010 and approximately zero to 1 percent for the full year of 2010. Stryker projected that diluted net earnings per share for 2010 will be in the range of $3.20 to $3.30, an increase of 8 to 12 percent over adjusted diluted net earnings per share of $2.95 in 2009.

To listen in on a replay of a conference call discussing the company’s performance, call (888) 286-8010 in the United States or (617) 801-6888 elsewhere,  and enter the passcode 20717533.

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