Stryker Updates Expected 2008 Results and Provides 2009 Outlook
Stryker also reconfirmed that it expects 2008 diluted net earnings pershare to be in the range of $2.77 to $2.79, representing an increase of 14%compared to 2007 diluted net earnings per share of $2.44 which includedearnings related to the sale and operations of our discontinued PhysiotherapyAssociates business. Excluding the impact of the previously announced fourthquarter 2008 restructuring charges, adjusted diluted net earnings per sharefor 2008 are expected to be in the range of $2.82 to $2.84, an increase of 18%compared to adjusted diluted net earnings per share from continuing operationsof $2.40 in 2007.
2008 Sales Analysis
Domestic sales were $1,129 million for the fourth quarter and $4,282million for the year ended December 31, 2008, representing increases of 7.0%and 11.2%, respectively. International sales were $589 million for the fourthquarter, representing a decrease of 2.3% and were $2,436 million for the yearended December 31, 2008, representing an increase of 13.3%. The impact offoreign currency comparisons to the dollar value of international sales wasunfavorable by $68 million in the fourth quarter and favorable by $85 millionfor the year ended December 31, 2008. On a constant currency basis,international sales increased 9.0% in the fourth quarter and 9.4% for the yearended December 31, 2008.
Worldwide sales of Orthopaedic Implants were $1,017 million for the fourthquarter and $3,967 million for the year ended December 31, 2008, representingincreases of 4.2% and 10.6%, respectively. On a constant currency basis,sales of Orthopaedic Implants increased 8.9% in the fourth quarter and 8.8%for the year ended December 31, 2008. Worldwide sales of MedSurg Equipmentwere $701 million for the fourth quarter and $2,751 million for the year endedDecember 31, 2008, representing increases of 2.8% and 14.0%, respectively. Ona constant currency basis, sales of MedSurg Equipment increased 6.2% in thefourth quarter and 13.2% for the year ended December 31, 2008.
The Company projects that diluted net earnings per share for 2009 will bein the range of $3.12 to $3.22, an increase of 10% to 14% over adjusteddiluted net earnings per share of $2.82 to $2.84 in 2008. The financialforecast for 2009 includes a constant currency net sales increase of 6% to 9%as a result of growth in shipments of Orthopaedic Implants and MedSurgEquipment. If foreign currency exchange rates hold near current levels, theCompany anticipates net sales will be unfavorably impacted by approximately 4%to 5% in the first quarter of 2009 and by approximately 3% to 4% for the fullyear of 2009.
"In a challenging economic environment, we are pleased to report oureighth consecutive year of double-digit sales growth for 2008," commentedStephen P. MacMillan, President and Chief Executive Officer. "Although ourfourth quarter was impacted by reduced capital purchases by the Company'shospital customers, our diversified business model helped deliver anotherstrong year of growth. Despite great uncertainty in the global economy andcontinued pressure on hospital capital expenditure budgets, we believe thestrength of our global franchises combined with our focus on cost controlswill allow us to deliver solid top line growth and double-digit EPS gains in2009."
Conference Call on January 27, 2009
Stryker also announced that it will host a conference call on Tuesday,January 27, 2009 at 4:30 p.m., Eastern Time, to discuss the Company'soperating results for the quarter and year ended December 31, 2008 and providean operational update. Operating results for the quarter and year endedDecember 31, 2008 will be released at 4:00 p.m. that day.
To participate in the conference call dial 800-510-9661 (domestic) or617-614-3452 (international) and enter the participant passcode 38897062. Asimultaneous webcast of the call will be accessible via the Company's websiteat www.stryker.com. The call will be archived on this site for 90 days.
A recording of the call will also be available from 6:30 p.m., EasternTime, on Tuesday, January 27, 2009, until 6:30 p.m. on Tuesday, February 3,2009. To hear this recording you may dial 888-286-8010 (domestic) or617-801-6888 (international) and enter the passcode 44664788.
This press release contains information that includes or is based onforward-looking statements within the meaning of the federal securities lawthat are subject to various risks and uncertainties that could cause theCompany's actual results to differ materially from those expressed or impliedin such statements. Such factors include, but are not limited to: furtherweakening of economic conditions that could adversely affect the level ofdemand for the Company's products; pricing pressures generally, includingcost-containment measures that could adversely affect the price of or demandfor the Company's products; changes in foreign exchange markets; regulatoryactions; unanticipated issues arising in connection with clinical studies andotherwise that affect U.S. Food and Drug Administration approval of newproducts; changes in reimbursement levels from third-party payors; asignificant increase in product liability claims; changes in financialmarkets; and changes in the competitive environment. Additional informationconcerning these and other factors are contained in the Company's filings withthe U.S. Securities and Exchange Commission, including the Company's AnnualReport on Form 10-K and Quarterly Reports on Form 10-Q.
Stryker Corporation is one of the world's leading medical technologycompanies with the most broadly based range of products in orthopaedics and asignificant presence in other medical specialties. Stryker works withrespected medical professionals to help people lead more active and moresatisfying lives. The Company's products include implants used in jointreplacement, trauma, craniomaxillofacial and spinal surgeries; biologics;surgical, neurologic, ear, nose & throat and interventional pain equipment;endoscopic, surgical navigation, communications and digital imaging systems;as well as patient handling and emergency medical equipment. For moreinformation about Stryker, please visit www.stryker.com.
SOURCE Stryker Corporation
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