Stryker Earns 90 Cents Per Share

Right in line with expectations.

Second Quarter Highlights

Net sales increased 11.9% on a constant currency basis (16.3% as reported) to $2.05 billion

Sales of Reconstructive products increased 1.8% on a constant currency basis (7.4% increase as reported)

Sales of MedSurg products increased 11.9% on a constant currency basis (15.0% as reported)

Sales of Neurotechnology and Spine products increased 49.0% on a constant currency basis (52.6% as reported)

Adjusted net earnings increased 10.4% from $319 million to $352 million and adjusted diluted net earnings per share increased 12.5% from $0.80 to $0.90
Reported net earnings decreased 3.1% from $319 million to $309 million and reported diluted net earnings per share decreased 1.3% from $0.80 to $0.79

“Our second quarter results validate the strength of our diverse sales footprint, enabling us to deliver on our commitments despite ongoing macro-economic challenges,” commented Stephen P. MacMillan, Chairman, President and Chief Executive Officer. “We are excited about our ability to leverage the breadth of our product offering through continued investments in R&D coupled with selective acquisitions, share repurchases and dividends in order to maximize shareholder value.”

Stryker has also reaffirmed its guidance for 2011:

2011 Outlook

The financial forecast for 2011 includes a constant currency net sales increase of 11-13% as a result of growth in shipments of Reconstructive products, MedSurg products and Neurotechnology and Spine products as well as sales growth through acquisitions. If foreign currency exchange rates hold near current levels, the Company anticipates net sales will be favorably impacted by approximately 2.5-3.5% in the third quarter of 2011 and by approximately 2.0 to 3.0% for the full year of 2011. Excluding the expected impact from foreign currency as well as acquisitions, sales growth is projected to be 5-7% for the full year of 2011.

The Company continues to project that adjusted diluted net earnings per share for 2011 will be in the range of $3.65 to $3.73, an increase of 10% to 12% over adjusted diluted net earnings per share of $3.33 in 2010. In 2011, the Company anticipates acquisition and integration-related charges of approximately $0.33 to $0.35 per share (net of income tax benefits), including transaction costs, integration-related charges and additional cost of sales for inventory sold that was stepped-up to fair value, as a result of the acquisitions of the Neurovascular and Orthovita businesses. This increase from the previously communicated range of $0.28 to $0.30 is a result of the closing of the Orthovita, Inc. and Memometal Technologies S.A. acquisitions.

No surprises here. This is a good report.

Posted by on July 19th, 2011 at 4:04 pm


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