A $48 million restructurng charge gave a bit of an artificial boost to reported profitability at the Kalamazoo-based medical device maker Stryker Corp. (NYSE: SYK).
The company also narrowed its 2010 sales and profit outlook at the higher end of the previously announced range.
Revenue rose 6.9 percent during the quarter ended Sept. 30 compared to a year earlier, to $1.77 billion.
And net income jumped 48 percent to $338 million or 85 cents a share from $229 million or 57 cents a share a year earlier.
Net income for the third quarter of 2010 included one-time gains of $20 million for the sale of a plant in Caen, France and an income tax credit. Net income for the third quarter of 2009, meanwhile, included a $48 million restructuring charge.
“Adjusted” net income, without those one-time charges, rose 14 percent to $317 million from $277 million a year earlier.
“As we move into the final quarter of the year, we remain focused on delivering on the goals we outlined at the start of 2010 as it relates to both sales and earnings while also ensuring we are making investments in our business to position us for continued growth in the future,” said Stryker chairman, CEO and president Stephen P. MacMillan.
The company said domestic sales rose 10 percent to $1.17 billion, while international sales rose 2 percent to $594 million. Worldwide sales of orthopedic implants rose 1.2 percent to $1.03 billion, while worldwide sales of what the company calls “MedSurg Equipment” jumped 16 percent to $739 million, 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.
For the nine months, Stryker reported sales of $5.32 billion, up 9 percent from $4.89 billion a year earlier. Net income for the nine months was $978.4 million or $2.45 a share, up 22 percent from $801.4 million or $2.01 a year earlier.
The company said that due to the “underlying strength” of its “diversified product and services offering,” it would update its 2010 sales increase forecast to 7 to 8 percent for the year, from the previous range fo 5 to 8 percent. The company also narrowed its 2010 earnings per share forecast to $3.27 to $3.30 a share, vs. the previous range of $3.20 to $3.30. The new range would represent an increase of 11 to 12 percent from 2009’s net earnings per share of $2.95.
To listen in on a recording of a conference call discussing the results, call (888) 286-8010 in the United States or (617) 801-6888 elsewhere, and enter the passcode 30594001.
More at www.stryker.com.
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