January 23, 2013
Stryker (NYSE: SYK ) saw a fairly steep year-over-year decline of 33% in net profit for its Q4, according to a company release announcing quarterly and fiscal 2012 results. The bottom line came in at $270 million (diluted $0.71 per share), well short of the $401 million ($1.05 diluted EPS) it posted in the same quarter of 2011. Net sales, meanwhile, grew 6% on an annual basis to $2.3 billion.
Much of the net profit shortfall was due to a $133 million charge the company took for the recall of a pair of modular-neck hip stem products, the Rejuvenate and the ABG II.
For the full year, the company's net sales advanced 4% over those of 2011 to land at $8.7 billion. Net profit dropped 4% to $1.3 billion ($3.39 diluted EPS).
Looking forward, the firm expects sales to grow 3%-5.5% on a constant currency basis. It's currently modeling EPS of $4.25-$4.40.
Earlier this month, Stryker announced that it made a $764 million offer to acquire Hong Kong-listed Trauson Holdings, a maker of goods for patients with spinal difficulties. The company anticipates that the purchase will not significantly affect earnings for this year.