Stryker Profits Up On 11% Sales Jump
KALAMAZOO — The medical equipment maker Stryker Corp. (NYSE: SYK) reported net sales of $2.2 billion in the fourth quarter, up 11 percent from a year earlier. Net income was $401 million or $1.05 a share, up 36 percent from $295 million or 74 cents a share a year earlier.
For the full year, sales were up 14 percent to $8.3 billion. Net income was $1.35 billion, up 5.7 percent from a year earlier. Net income per share rose 8.2 percent to $3.45.
“Despite the challenging economic environment, our results for 2011 underscore the inherent strength afforded by our balanced diversification,” said president, chairman and CEO Stephen P. MacMillan. “We have built on the breadth of our sales footprint with the addition of several targeted acquisitions which further expand our product offering in the medical technology market.”
In the quarter, sales in the reconstructive product line rose 1.3 percent to $983 million, as higher shipments of trauma and extremities and hip implant systems, and sales growth through acquisitions, were offset by lower shipments of knee and other implant systems.
Sales in what the company calls its MedSurg business rose 11.2 percent in the quarter to $857 million, driven by higher shipments of patient handling and emergency medical equipment, surgical equipment and surgical navigation systems, endoscopic and communications systems, and sales growth through acquisitions.
Sales of neurotechnology and spine products rose 47.3 percent in teh quarter to $377 million, primarily due to sales growth through acquisitions and higher shipments of neurotechnology products.
Reported net earnings in the quarter includes the net benefit of the Ireland cost sharing settlement with the Internal Revenue Service and an associated adjustment to its uncertain tax positions of $99 million (net of taxes), restructuring and related charges of $60 million (net of taxes), and acquisition and integration related charges of $28 million (net of taxes) related to the Neurovascular, Orthovita, Memometal and Concentric acquisitions, including transaction costs, integration related costs and additional cost of sales for inventory sold in the quarter that was “stepped up” to fair value.
Excluding the impacts of the above items, adjusted net earnings of $390 million and $1,448 million increased 5.1 percent and 9 percent in the quarter and full year over the prior year, respectively. Adjusted diluted net earnings per share of $1.02 and $3.72 increased 9.7 percent and 11.7 percent in the quarter and full year over the prior year, respectively. The financial forecast for 2012 includes a constant currency sales increase of 3.5 percent to 6.5 percent.
The Company projects 2012 adjusted diluted net earnings per share to grow at double-digit levels over 2011. In 2012, the Company anticipates previously announced restructuring and related charges and acquisition and integration-related charges to reduce reported diluted net earnings per share by approximately 22 cents. To listen to a recording of the conference call discussing the results, call (888) 286-8010 in the United States or (617) 801-6888 elsewhere, using the passcode 45833616. More at www.stryker.com.