Stryker Quarterly Net Falls On One-Time Charge; Year Still Positive
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The Kalamazoo medical device maker Stryker Corp. (NYSE: SYK) said its sales rose 8.6 percent to $1.995 billion in the fourth quarter, and 7.8 percent $7.32 billion for the full year 2010.
Net income fell 3.6 percent in the fourth quarter to $295 million or 74 cents a share, while net income for the full year rose 15 eprcent to $1.273 billion or $3.19 a share.
The decline in the fourth quarter was due to a one-tmie write off of $124 million ($77 million after taxes) for the previously announced sale of assets used in orthopedic bone applications. Excluding that charge, net income would have risen 12.5 percent in the quarter from a year earlier.
Orthopedic implant sales rose 4.3 percent for the quarter and 3.3 percnet for the year, while sales of what the company calls “MedSurg Equipment” rose 15.4 percent for the quarter and 15 percent for the year.
“Our 2010 results reinforce the underlying strength provided by our diverse revenue base as we delivered on our financial commitments while successfully navigating through the continued challenges presented by the difficult economic environment,” said Stephen P. MacMillan, Stryker CEO, chairman and president. “In 2010 we augmented our unique sales footprint by leveraging our balance sheet through several key acquisitions that both strengthen our core product offering while also allowing us to expand into fast growing adjacent medical technology markets. Combined with the continued double-digit increase in our annual dividend and ongoing share repurchases, we believe these moves optimized shareholder return and position our company for long term growth.”
Domestic sales were $1.286 billion for the quarter and $4.793 billion for the year, both up 11 percent. International sales were $710 million for the quarter and $2.527 billion for the year, up 5 and 5.1 percent respectively.
Stryker is predicting a sales increase of 11 to 13 percent in 2011 and earnings of $3.65 to $3.73 a share, up 10 to 12 percent over 2010’s earnings.
To listen to a replay of the conference call discussing the results, call (888) 286-8010 in the United States or (617) 801-6888 elsewhere and use the pass code 88981346.
More at www.stryker.com.