Stryker Corporation Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2015; Provides Earnings Guidance for the First Quarter and Full Year 2016
January 27, 2016 at 02:36 am IST
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Stryker Corporation announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2015. For the fourth quarter, the company reported net sales of $2,715 million compared to $2,618 million a year ago. Operating income was $648 million compared to $468 million a year ago. Earnings before income taxes were $612 million compared to $461 million a year ago. Net earnings were $522 million or $1.38 per diluted share compared to $260 million or $0.67 per diluted share a year ago. Adjusted operating income was $744 million compared to $721 million a year ago. Adjusted net earnings were $591 million or $1.56 diluted per share compared to $552 million or $1.44 diluted per share a year ago.
For the full year, the company reported net sales of $9,946 million compared to $9,675 million a year ago. Operating income was $1,861 million compared to $1,246 million a year ago. Earnings before income taxes were $1,735 million compared to $1,160 million a year ago. Net earnings were $1,439 million or $3.78 per diluted share compared to $515 million or $1.34 per diluted share a year ago. Net cash provided by operating activities was $899 million compared to $1,777 million a year ago. Purchases of property, plant and equipment was $270 million compared to $233 million a year ago. Adjusted operating income was $2,481 million compared to $2,414 million a year ago. Adjusted net earnings were $1,949 million or $5.12 diluted per share compared to $1,810 million or $4.73 diluted per share a year ago.
The company provided earnings guidance for the first quarter and full year 2016. For the quarter, the company expects constant currency sales growth in the range of 5.0% to 6.0% and adjusted net earnings per diluted share to be in the range of $1.17 to $1.22. If foreign currency exchange rates hold near current levels, the company expects net sales to be negatively impacted by approximately 1.1% and adjusted net earnings per diluted share to be negatively impacted by approximately $0.02 to $0.03.
For the year, the company expects constant currency sales growth in the range of 5.0% to 6.0% and adjusted net earnings per diluted share to be in the range of $5.50 to 5.70. If foreign currency exchange rates hold near current levels, the company expects net sales to be negatively impacted by approximately 1.1% and 1.0% and adjusted net earnings per diluted share to be negatively impacted by approximately $0.12-$0.13. The company expects full year adjusted effective tax rate in 2016 will continue to be approximately 17% to 17.5%. Capital expenditures are expected to be $400 million to $450 million in 2016 as the company continues to invest in operations and IT infrastructure to support future growth.
Stryker Corporation is one of the world's leaders in designing, manufacturing, and selling orthopedic equipments. Net sales break down by family of products as follows:
- surgical equipments and neurotechnology products (57.5%): electric motorized surgical instruments, surgical navigation systems, endoscopy equipment, digital imaging systems, neurosurgery equipments, neurovascular devices, etc. The group also offers hospital beds, gurneys, stretchers, and emergency room equipment;
- orthopedic implants (42.5%): joint prostheses, traumatology implants, micro-implants, orthopedic cement, orthobiology products, etc. The group also provides spinal implants.
At the end of 2022, the group had 48 production sites worldwide.
Net sales are distributed geographically as follows: the United States (73.9%), Europe/Middle East/Africa (12.7%), Asia/Pacific (10.2%) and other (3.2%).
Stryker Corporation Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2015; Provides Earnings Guidance for the First Quarter and Full Year 2016