Published in Manufacturing

Stryker’s earnings slip, despite first quarter sales gains

BY MiBiz Staff Wednesday, April 24, 2019 08:32am

KALAMAZOO — Stryker Corp. grew sales 8.5 percent during the first quarter, although net income declined.

The Kalamazoo-based Stryker (NYSE: SYK) on Tuesday generated $3.51 billion in sales for the first three months of 2019, versus $3.24 billion in the same period a year earlier.

Quarterly net income of $412 million, or $1.09 per diluted share, compares to $443 million, or $1.16 per diluted share, in the first quarter of 2018.

Adjusted earnings minus quarterly charges increased nearly 12 percent to $714 million, or $1.88 per diluted share.

First quarter results “reflect continuing momentum” across Stryker’s three business segments with sales growth that was balanced between the U.S. and international markets, said Chairman and CEO Kevin Lobo.

Sales in the orthopedics division increased 2.8 percent to $1.25 billion, and the medical/surgical division increased sales by 8.2 percent to $1.54 billion. Sales for the neurotechnology and spine business increased 20.7 percent to $722 million.

“Looking ahead to the full year, we are confident in sustaining this momentum and in our ability to deliver on our commitments to our customers, employees, and shareholders,” Lobo said.

Stryker expects organic sales for 2019 to grow 6.8 percent to 7.5 percent from $13.6 billion in 2018, with adjusted net income of $1.90 to $1.95 per diluted share for the second quarter, and $8.05 to $8.20 per diluted share for the full year.

The company expects foreign currency exchange rates, if they stay near current level, to negatively affect sales by 1.5 percent in the second quarter and by 1 percent for the full year.

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