KALAMAZOO, Mich., Jan. 28 /PRNewswire-FirstCall/ --
Stryker Corporation (NYSE: SYK) reported today that net sales were $709.8
million for the fourth quarter of 2001, representing a 16% increase over net
sales of $612.4 million in the fourth quarter of 2000, and $2,602.3 million
for the year ended December 31, 2001, representing a 14% increase over net
sales of $2,289.4 million in 2000. Excluding the impact of foreign currency,
net sales increased 17% for the fourth quarter and 16% for the year.
Earnings before extraordinary item for the fourth quarter of 2001
increased 22% to $81.4 million from $66.5 million in 2000 and diluted earnings
per share before extraordinary item for the quarter increased 21% to $.40
compared to $.33 in the prior year. For the year ended December 31, 2001,
earnings before extraordinary item increased 23% to $271.8 million from $221.0
million in 2000 and diluted earnings per share before extraordinary item
increased 22% to $1.34 compared to $1.10 in the prior year.
Net earnings were $76.6 million ($.38 per diluted share) for the fourth
quarter of 2001 and $267.0 million ($1.32 per diluted share) for the year
ended December 31, 2001.
Sales Analysis
Domestic sales were $457.0 million for the fourth quarter and $1,688.4
million for the year ended December 31, 2001, representing increases of 20% in
both periods as a result of strong shipments of Orthopaedic Implants and
MedSurg Equipment and higher revenue from Physical Therapy Services.
International sales were $252.8 million for the fourth quarter and $913.9
million for the year ended December 31, 2001, representing increases of 9% and
4%, respectively, as a result of higher shipments of Orthopaedic Implants and
MedSurg Equipment. The impact of foreign currency comparisons to the dollar
value of international sales was unfavorable by $8.9 million in the fourth
quarter and $62.1 million for the year ended December 31, 2001. Excluding the
impact of foreign currency, international sales increased 13% in the fourth
quarter and 11% for the year ended December 31, 2001.
Worldwide sales of Orthopaedic Implants were $392.3 million for the fourth
quarter and $1,442.5 million for the year ended December 31, 2001,
representing increases of 15% and 10%, respectively, as a result of higher
shipments of reconstructive (hip, knee and shoulder), trauma and spinal
implants. Excluding the impact of foreign currency, sales of Orthopaedic
Implants increased 17% in the fourth quarter and 13% for the year.
Worldwide sales of MedSurg Equipment were $269.9 million for the fourth
quarter and $978.9 million for the year ended December 31, 2001, representing
increases of 17% and 18%, respectively, as a result of higher shipments of
powered surgical instruments, endoscopic systems, hospital beds and stretchers
and Leibinger craniomaxillofacial implants and image guided surgical systems.
Excluding the impact of foreign currency, sales of MedSurg Equipment increased
18% in the fourth quarter and 20% for the year.
Physical Therapy Services revenues were $47.6 million for the fourth
quarter and $180.9 million for the year ended December 31, 2001, representing
increases of 17% and 23%, respectively, as a result of new physical therapy
centers and higher revenue from existing centers.
Extraordinary Item
The fourth quarter and year ended December 31, 2001 included an
extraordinary loss, net of income taxes, of $4.8 million for the write-off of
unamortized debt syndication fees on the 1998 Credit Facility which was
refinanced on December 21, 2001.
Conference Call
As previously announced, the Company will conduct a conference call for
financial analysts at 5:00 p.m. Eastern Time, today. To hear the conference
call, dial 800-252-8302. A simultaneous webcast of the call may be accessed
via the Company's website at www.strykercorp.com . The call will be archived
on this website for 90 days. A recording of the call may also be accessed
from 7:00 p.m., Eastern Time, today until 7:00 p.m. on January 30, 2002 by
calling 800-633-8284 (domestic) or 858-812-6440 (international) and entering
the reservation number 20171530.
Stryker Corporation develops, manufactures and markets specialty surgical
and medical products, including orthopaedic reconstructive, trauma, spinal and
craniomaxillofacial implants, powered surgical instruments, endoscopic
systems, patient care and handling equipment for the global market and
provides outpatient physical therapy services in the United States.
STRYKER CORPORATION
For the Three Month Period and Year Ended December 31, 2001
(Unaudited - In Millions Except Per Share Amounts)
Fourth Quarter Year Ended December 31
CONDENSED STATEMENT OF
EARNINGS 2001 2000 % 2001 2000 %
Change Change
Net sales $709.8 $612.4 15.9 $2,602.3 $2,289.4 13.7
Cost of sales 265.4 215.9 22.9 963.8 815.2 18.2
GROSS PROFIT 444.4 396.5 12.1 1,638.5 1,474.2 11.1
% of Sales 62.6 64.7 63.0 64.4
Research, development
and engineering
expenses 36.2 33.4 8.4 142.1 122.2 16.3
Selling, general and
administrative
expenses 261.5 232.2 12.6 985.4 885.6 11.3
Restructuring charges
(credits) 0.6 (1.0) -- 0.6 (1.0) --
298.3 264.6 12.7 1,128.1 1,006.8 12.0
Other expense (income):
Interest expense 14.8 20.7 (28.5) 67.9 96.6 (29.7)
Intangibles
amortization 9.8 8.4 16.7 38.4 34.7 10.7
Other 0.0 2.0 (100.0) (1.6) 1.2 --
24.6 31.1 (20.9) 104.7 132.5 (21.0)
EARNINGS BEFORE INCOME
TAXES AND
EXTRAORDINARY ITEM 121.5 100.8 20.5 405.7 334.9 21.1
Income taxes 40.1 34.3 16.9 133.9 113.9 17.6
EARNINGS BEFORE
EXTRAORDINARY ITEM 81.4 66.5 22.4 271.8 221.0 23.0
Extraordinary loss,
net of income taxes (4.8) -- (4.8) --
NET EARNINGS $76.6 $66.5 15.2 $267.0 $221.0 20.8
Basic Earnings Per Share
Before Extraordinary
Item $0.41 $0.34 20.6 $1.38 $1.13 22.1
Extraordinary Loss $(0.02) $ -- -- $(0.02) $ -- --
Net Earnings $0.39 $0.34 14.7 $1.36 $1.13 20.4
Diluted Earnings Per Share
Before Extraordinary
Item $0.40 $0.33 21.2 $1.34 $1.10 21.8
Extraordinary Loss $(0.02) $ -- -- $(0.02) $ -- --
Net Earnings $0.38 $0.33 15.2 $1.32 $1.10 20.0
Average Shares Outstanding
Basic 196.6 195.8 0.4 196.3 195.1 0.6
Diluted 203.4 202.4 0.5 203.0 201.1 0.9
Fourth Quarter Year Ended December 31
CONDENSED SALES ANALYSIS 2001 2000 % 2001 2000 %
Change Change
Domestic $457.0 $380.9 20.0 $1,688.4 $1,408.2 19.9
International 252.8 231.5 9.2 913.9 881.2 3.7
NET SALES $709.8 $612.4 15.9 $2,602.3 $2,289.4 13.7
Orthopaedic Implants $392.3 $341.0 15.0 $1,442.5 $1,313.0 9.9
MedSurg Equipment 269.9 230.7 17.0 978.9 829.1 18.1
Physical Therapy
Services 47.6 40.7 17.0 180.9 147.3 22.8
NET SALES $709.8 $612.4 15.9 $2,602.3 $2,289.4 13.7
STRYKER CORPORATION
(Unaudited - In Millions)
December 31 December 31
CONDENSED BALANCE SHEET 2001 2000
ASSETS
Cash and investments $50.1 $54.0
Accounts receivable (net) 332.1 343.7
Inventories 399.8 392.1
Other current assets 211.1 207.2
TOTAL CURRENT ASSETS 993.1 997.0
Property, Plant and Equipment (net) 444.0 378.1
Goodwill and Other Intangibles (net) 802.3 839.3
Other Assets 184.2 216.4
TOTAL ASSETS $2,423.6 $2,430.8
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities $533.4 $617.4
Long-Term Debt 720.9 876.5
Other Liabilities 113.1 82.0
Stockholders' Equity 1,056.2 854.9
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $2,423.6 $2,430.8
STRYKER CORPORATION
(Unaudited - In Millions)
Year Ended December 31
CONDENSED STATEMENT OF CASH FLOWS 2001 2000
OPERATING ACTIVITIES
Net earnings $267.0 $221.0
Depreciation 74.5 74.7
Amortization 97.5 93.9
Proceeds from accounts receivable
securitization 2.7 30.3
Changes in working capital (32.6) (123.7)
Other 59.2 35.6
NET CASH PROVIDED BY OPERATING ACTIVITIES 468.3 331.8
INVESTING ACTIVITIES
Purchases of property, plant and equipment (161.9) (80.7)
Business acquisitions, net of cash acquired (43.0) (24.5)
Other 9.0 11.9
NET CASH USED IN INVESTING ACTIVITIES (195.9) (93.3)
FINANCING ACTIVITIES
Repayments on borrowings, net (275.6) (253.4)
Dividends (15.7) (12.7)
Other 13.7 7.4
NET CASH USED IN FINANCING ACTIVITIES (277.6) (258.7)
Effect of exchange rate changes on
cash and cash equivalents 1.3 (5.8)
CHANGE IN CASH AND CASH EQUIVALENTS $(3.9) $(26.0)
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SOURCE Stryker Corporation
Web site: http: //www.strykercorp.com
CONTACT: David J. Simpson, Vice President, Chief Financial Officer and Secretary of Stryker Corporation, +1-616-385-2600