Stryker 1Q profit falls 13 percent on charges
Stryker 1Q profit sinks 13 percent on recall costs; adjusted results top Wall Street estimates
KALAMAZOO, Mich. (AP) -- Medical device maker Stryker Corp. said Tuesday its first-quarter profit fell 13 percent due to costs from a recall of hip implants and other regulatory issues.
Despite the drop in profit, the company's adjusted results beat Wall Street expectations.
Stryker said net income fell 13.1 percent to $304 million, or 79 cents per share, from $350 million, or 91 cents per share diluted. Excluding $40 million from a recall of hip implant stems and other charges, the company would have earned $1.03 per share.
Sales edged up 1.3 percent to $2.19 billion.
Analysts polled by FactSet expected earnings of $1.01 per share on sales of $2.2 billion.
Stryker said revenue from its reconstructive device business rose 1.2 percent, while surgical products were nearly flat. Sales of neurotechnology and spine devices increased 4 percent.
Stryker recalled its Rejuvenate and ABG III products in late June and stopped worldwide distribution of the products. The company cited concerns about fretting and corrosion, saying they could cause tissue reaction and pain in patients. Stryker said it would reimburse patients for the costs of testing and treatment related to the problem, which could include replacement surgeries.
The company said it still expects full-year 2013 earnings in the range of $4.25 and $4.40 per share. Analysts expect $4.33 per share, on average.
Shares of Stryker rose 4 cents to $64.73 Tuesday in after-hours trading.
