Stryker Corporation (SYK) reported preliminary revenue results for the fourth quarter and full fiscal 2009. For the fourth quarter, net sales were $1,834 million, an increase of 6.8% year over year. Excluding a favorable foreign currency translation (FX), net sales increased 2.5% year over year.
For full fiscal 2009, net sales were $6,723 million, an increase of 0.1% year over year. Excluding an unfavorable FX, net sales increased 1.7% year over year. Stryker will report full fourth quarter and fiscal 2009 results on Jan 26, 2010 after the market closes.
In terms of business segments: Orthopedic Implants sales increased 9.7% year over year to $1,116 million in the fourth quarter of 2009. MedSurg Equipment sales increased 2.5% year over year to $719 million in the reported quarter. In fiscal 2009, Orthopedic Implants sales increased 3.8% year over year to $4,120 million. MedSurg Equipment sales declined 5.4% year over year to $2,603 million.
Geographically, the U.S. contributed 64% to total fiscal 2009 revenues and increased 0.8% year over year. International operations declined 1.2% year over year. Stryker settled an outstanding patent infringement lawsuit and as a result will record a gain of $63 million ($43 million net of income taxes) in the fourth quarter of 2009. Furthermore, the company repatriated $787 million of foreign earnings to the United States in the fourth quarter. As a result, Stryker will incur additional income tax expense of approximately $70 million in the reported quarter.
Stryker expects earnings per share in 2009 in the range of $2.94 to $2.96, an increase of 4% to 5% year over year. For fiscal 2010, Stryker expects sales to grow in the range of 5% to 8% year over year on a constant-currency basis. Earnings per share in fiscal 2010 are expected in the range of $3.20 to $3.30.
Stryker is one of the world’s largest medical devices companies operating in the global orthopedic market. In the orthopedic space, Stryker faces competition from major players like Zimmer Holdings, Inc. (ZMH), CONMED Corporation (CNMD), Smith & Nephew (SNN), Johnson & Johnson/DePuy (JNJ) and Wright Medical (WMGI).
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