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Stryker Corporation Message Board

  • bluecheese4u bluecheese4u Oct 17, 2012 4:05 PM Flag

    Stryker Reports Third Quarter 2012 Results

    Stryker Reports Third Quarter 2012 Results


    Sales of $2.1 billion, growth of 1.0%


    Adjusted diluted net earnings per share(1) of $0.97, growth of 6.6%


    Adjusted diluted net earnings per share full year guidance revised to a range of $4.04 to $4.07 per share for 2012 and $4.25 to $4.40 for 2013

    Kalamazoo, Michigan - October 17, 2012 - Stryker Corporation (NYSE:SYK) reported operating results for the third quarter of 2012 with net sales of $2.1 billion, up 1.0% and adjusted diluted net earnings per share(1) of $0.97, an increase of 6.6%.

    "Our third quarter results reflect solid performance for most of our U.S. franchises, however, this was partly offset by weaker results from key countries outside the U.S. and our capital businesses," commented Kevin A. Lobo, President and Chief Executive Officer. "We expect market conditions to remain challenging in Europe and for capital equipment, and as a result we are lowering our earnings outlook for 2012 and 2013. This will ensure that Stryker makes the necessary investments to strengthen its position as a market leader while continuing to deliver leveraged earnings gains."

    Sales Analysis

    Consolidated net sales of $2.1 billion increased 1.0% in the quarter over the prior year, as reported, and 2.9% in constant currency. Net sales in the quarter grew by 3.4% due to increased unit volume and changes in product mix and 0.4% as a result of acquisitions. These increases were partially offset by an unfavorable impact of 0.9% due to changes in price and 1.9% due to the unfavorable impact of foreign currency exchange rates on net sales. Excluding the impact of acquisitions, net sales increased 2.5% in constant currency over the prior year.

    Reconstructive net sales of $891 million decreased 1.1% in the quarter over the prior year, as reported, and increased 1.1% in constant currency. Net sales in the quarter grew by 2.4% due to increased unit volume and changes in product mix and 0.1% as a result of acquisitions. These increases were partially offset by an unfavorable impact of 1.4% due to changes in price and 2.2% due to the unfavorable impact of foreign currency exchange rates on net sales. Excluding the impact of acquisitions, Reconstructive net sales increased 1.0% in constant currency over the prior year.

    MedSurg net sales of $781 million increased 1.7% in the quarter over the prior year, as reported, and 3.1% in constant currency. Net sales in the quarter grew by 3.3% due to increased unit volume and changes in product mix. This increase was partially offset by an unfavorable impact of 0.2% due to changes in price and 1.4% due to the unfavorable impact of foreign currency exchange rates on net sales.

    Neurotechnology and Spine net sales of $380 million increased 4.7% in the quarter over the prior year, as reported, and 6.9% in constant currency. Net sales in the quarter grew by 6.0% due to increased unit volume and changes in product mix and 2.1% as a result of acquisitions. These increases were partially offset by an unfavorable impact of 1.3% due to changes in price and 2.2% due to the unfavorable impact of foreign currency exchange rates on net sales. Excluding the impact of acquisitions, Neurotechnology and Spine net sales increased 4.7% in constant currency over the prior year.

    Earnings Analysis

    Reported net earnings in the quarter include restructuring and related charges of $11 million (net of taxes), and acquisition and integration related charges of $6 million (net of taxes) related to acquisitions completed in 2011. These charges reduced reported gross profit margin from 68.2% to 68.1% and reported operating income margin from 22.9% to 21.9%.

    Excluding the charges described above, adjusted net earnings(2) of $370 million increased 5.1% in the quarter over the prior year. Adjusted diluted net earnings per share(1) of $0.97 increased 6.6% in the quarter over the prior year.

    Net earnings of $353 million increased 8.0% in the quarter over the prior year. Diluted net earnings per share of $0.92 increased 9.5% in the quarter over the prior year.

    During the quarter, Stryker repurchased approximately 0.4 million shares at a cost of $19 million.

    Outlook

    The financial forecast for 2012 includes a constant currency sales increase of 4% to 5.5%. If foreign currency exchange rates hold near current levels, we anticipate net sales will be negatively impacted by approximately 0% to 1.0% in the fourth quarter of 2012 and negatively impacted by approximately 0.5% to 1.5% for the full year of 2012. Excluding the impact of acquisitions, sales growth is projected to be 2.5% to 4% in constant currency over the prior year.

    The company now projects 2012 adjusted diluted net earnings per share to be in the range of $4.04 to $4.07, an increase of 9% over adjusted diluted net earnings per share of $3.72 in the prior year. The company also projects 2013 adjusted diluted net earnings per share to be in the range of $4.25 to $4.40.
    1.
    A reconciliation of reported diluted net earnings per share to adjusted diluted net earnings per share, a non-GAAP financial measure, and other important information, appears below.

    2.
    A reconciliation of reported diluted net earnings to adjusted diluted net earnings, a non-GAAP financial measure, and other important information, appears below.

    Conference Call on Wednesday, October 17, 2012

    As previously announced, the Company will host a conference call for financial analysts at 4:30 p.m., Eastern Time, today

    URL at talkstock

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SYK
83.94-0.12(-0.14%)Sep 17 4:02 PMEDT

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