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Published in Manufacturing

Stryker records Q1 sales growth despite supply chain, hospital staffing challenges

BY Friday, April 29, 2022 12:03pm

KALAMAZOO — Stryker Corp. recorded a solid first-quarter sales gain despite supply chain issues and staffing shortages at hospitals that delayed the installation of capital medical equipment.

The Kalamazoo-based Stryker (NYSE: SYK) on Thursday reported $4.27 billion in sales for the first quarter, an 8.1-percent increase from $3.95 billion a year earlier.

Stryker Chairman and CEO Kevin Lobo.

Stryker continued to see “robust demand for our capital products. However, we had meaningful shipment delays as a result of ongoing product supply challenges, mostly affecting our large capital businesses,” Chairman and CEO Kevin Lobo said.

Stryker also experienced a shortage of materials, mostly electronic components, Lobo said.

“Large capital (purchases have) been disrupted partially because of shortages of primarily electronics, but also hospitals’ ability to actually receive the capital either because of short staffing or because some of their construction projects were delayed,” he said during a conference call to discuss quarterly results. “Overall, I am pleased with our start to the year despite the challenging macroeconomic environment and believe we are well positioned for the future.”

Stryker recorded $323 million in quarterly net income, or 84 cents per diluted share, versus $302 million, or 79 cents per diluted share in the first quarter of 2021.

The company expects organic sales growth of 6 percent to 8 percent for 2022 with $9.60 to $10 in adjusted earnings per share.

“Despite the ongoing supply chain pressures and the continued COVID volatility in certain regions of the world, we remain confident in the outlook of our business, and we expect to continue to deliver sales growth at the high end of med tech,” Lobo said. “However, as previously mentioned, despite continued discipline with our spending, the pressure on our supply chain will impact our ability to deliver earnings leverage in 2022.”

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