Stryker Reports 4.2% Net Sales Growth in 2012, Hampered by $133M in Recall Charges

Spinal Tech
Laura Dyrda -

Stryker reported 5.5 percent net sales growth during the fourth quarter of 2012 to $2.3 billion and 4.2 percent full year net sales growth to $8.7 billion. However, the company reported a charge of $133 million related to the voluntary recall of the company's Rejuvenate and ABG II modular-neck hip stems. Full year net earnings were also impacted by acquisition and integration related charges of $9 million and $37 million, respectively. Diluted net earnings per share decreased 32.1 percent and 1.7 percent in the fourth quarter and full year over the prior year, respectively.

Net sales in the United States grew 8.7 percent while international net sales were flat in the fourth quarter. Full year net sales climbed 7.8 percent in the United States, but dropped 1.3 percent internationally.

During the fourth quarter, the company's hip and knee sales grew 3.6 percent and 5.4 percent respectively, leading the company's total reconstructive business to grow 6.4 percent. The spine and neurotechnology business grew 9.7 percent, led by a 12.3 percent growth in the United States.

The year's end report showed stagnant hip sales over 2011 and knee sales only growing 3 percent. Spine and neurotechnology sales grew 9.2 percent in 2012.

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