Kalamazoo, Michigan – January 10, 2017 – Stryker Corporation (SYK) announced today that preliminary results for the fourth quarter and full year 2016 were:
Preliminary Fourth Quarter Highlights
Net sales grew 16.3% to $3.2 billion (16.8% constant currency)
|Orthopaedics||5.3||%||or||5.7% constant currency|
|MedSurg||31.4||%||or||32.4% constant currency|
|Neurotechnology and Spine||8.3||%||or||8.2% constant currency|
Preliminary Full Year Highlights
Net sales grew 13.9% to $11.3 billion (14.3% constant currency)
|Orthopaedics||4.7||%||or||5.1% constant currency|
|MedSurg||25.7||%||or||26.4% constant currency|
|Neurotechnology and Spine||9.8||%||or||9.7% constant currency|
Preliminary consolidated net sales of $3.2 billion and $11.3 billion increased 16.3% and 13.9% as reported in the fourth quarter and full year. Excluding the impact of foreign currency and acquisitions, net sales increased 6.7% and 6.4% in the fourth quarter and full year. The acquisitions of Sage Products LLC and Physio-Control International, Inc., which closed in early April 2016, contributed $258 million and $740 million to our consolidated net sales in the fourth quarter and full year.
Based on the strong organic net sales growth, we expect 2016 adjusted net earnings per diluted share(a) to be at the high end of our previously stated range of $5.75 to $5.80, an increase of 12.3% to 13.3% over 2015. The full year negative foreign currency exchange impact was approximately $0.10 to $0.12 per share, while the fourth quarter includes a negative impact of approximately $0.02 to $0.04 per share.
“I am pleased with our performance in both the fourth quarter and the full year 2016,” said Kevin A. Lobo, Chairman and Chief Executive Officer. “Fourth quarter organic growth of 6.7% versus a strong prior year is impressive, and was balanced across Orthopaedics, MedSurg and Neurotechnology and Spine. In addition, we executed well on acquisitions and delivered leveraged adjusted earnings gains. We enter 2017 with good momentum across our businesses and look forward to building on this success.”
Preliminary Net Sales Analysis
Domestic net sales of $2.3 billion and $8.2 billion increased 17.9% and 15.9% as reported in the fourth quarter and full year. International net sales of $834 million and $3.1 billion increased 11.9% and 8.8% as reported in the fourth quarter and full year. In constant currency, international net sales increased 13.9% and 10.3%.
Orthopaedics net sales of $1.2 billion and $4.4 billion increased 5.3% and 4.7% as reported in the fourth quarter and full year. In constant currency and excluding the impact of acquisitions, net sales increased 5.2% and 4.8%.
MedSurg net sales of $1.4 billion and $4.9 billion increased 31.4% and 25.7% as reported in the fourth quarter and full year. In constant currency and excluding the impact of acquisitions, net sales increased 8.5% and 7.2%.
Neurotechnology and Spine net sales of $524 million and $2.0 billion increased 8.3% and 9.8% as reported in the fourth quarter and full year. In constant currency and excluding the impact of acquisitions, net sales increased 6.3% and 8.3%.
We plan to provide our 2017 sales and earnings guidance on January 24, 2017.
(a) A reconciliation of expected net earnings per diluted share to expected adjusted net earnings per diluted share for the fourth quarter and full year and other important information appears below.
J.P. Morgan Healthcare Conference on Wednesday, January 11, 2017
Stryker will participate in the J.P. Morgan Healthcare Conference on Wednesday, January 11, 2017 at the Westin St. Francis Hotel in San Francisco, California. Kevin A. Lobo, Chairman and Chief Executive Officer, will represent the Company in a presentation scheduled for 7:30 a.m. Pacific Time.
A simultaneous webcast and replay of the Company`s presentation will be available on Stryker`s website at www.stryker.com.
Conference Call on Tuesday, January 24, 2017
Stryker will host a conference call on Tuesday, January 24, 2017 at 4:30 p.m., Eastern Time, to discuss the Company`s operating results for the quarter and year ended December 31, 2016 and provide an operational update.
To participate in the conference call dial (844) 826-0610 (domestic) or (973) 453-3249 (international) and be prepared to provide confirmation number 26013694 to the operator.
A simultaneous webcast of the call will be accessible via the Company`s website at www.stryker.com. The call will be archived on the Investors page of this site.
A recording of the call will also be available from 8:00 p.m., Eastern Time, on Tuesday, January 24, 2017, until 11:59 p.m., Eastern Time, on Tuesday, January 31, 2017. To hear this recording you may dial (855) 859-2056 (domestic) or (404) 537-3406 (international) and enter conference ID number 26013694.