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Stryker Operating Results for Quarter Ended June 30, 2007

07/19/2007

KALAMAZOO, Mich., July 19 /PRNewswire-FirstCall/ -- Stryker Corporation (NYSE: SYK) reported operating results for the quarter ended June 30, 2007 as follows:

    Second Quarter Highlights

     -- Net sales increased 16.0% (14.2% constant currency) to $1,464 million
         * Orthopaedic Implant sales increased 14.6% (12.4% constant currency)
         * MedSurg Equipment sales increased 18.3% (17.0% constant currency)
     -- Diluted net earnings per share increased 25.0% to $.65 and adjusted
        diluted net earnings per share from continuing operations increased
        17.3% to $.61
         * The Company's Physiotherapy Associates business was sold for
           approximately $150 million in the second quarter of 2007, resulting
           in a net gain on sale of $25.7 million ($.06 per diluted share),
           and has been reflected as a discontinued operation
         * The second quarter of 2007 includes an intangible asset impairment
           charge (net of income taxes) of $12.7 million ($.03 per diluted
           share) to write off patents associated with  intervertebral body
           fusion cage products
         * Net earnings from continuing operations increased 13.2% from $212
           million to $240 million and adjusted net earnings from continuing
           operations increased 19.2% from $212 million to $253 million
         * Diluted net earnings per share from continuing operations increased
           11.5% from $.52 to $.58

"We are encouraged to report accelerating growth rates for our Orthopaedic Implant and MedSurg franchises in both the United States and globally," commented Stephen P. MacMillan, President and Chief Executive Officer. "Our U.S. orthopaedic implant businesses had a great quarter with 17% collective growth and worldwide sales of Endoscopy and Instruments products were exceptionally strong with constant currency growth of 20% and 18%, respectively."

Net sales were $1,463.7 million for the second quarter of 2007, representing a 16.0% increase over net sales of $1,261.8 million for the second quarter of 2006, and were $2,889.2 million for the first half of 2007, representing a 14.8% increase over net sales of $2,515.7 million for the first half of 2006. On a constant currency basis, net sales increased 14.2% for the second quarter and 13.0% for the first half.

The Company's second quarter 2007 net earnings from continuing operations were reduced by a $12.7 million intangible asset impairment charge (net of $7.1 million income tax benefit) to write off patents associated with intervertebral body fusion cage products. The impairment follows a United States Food and Drug Administration decision to downgrade certain intervertebral body fusion products to class II devices, along with a weak market for sales of these specific products. The Company's first quarter 2006 net earnings from continuing operations were reduced by a $52.7 million charge to write off purchased in-process research and development associated with the acquisition of Sightline Technologies, Ltd. (Sightline).

Excluding the impact of the $12.7 million intangible asset impairment recorded in the second quarter of 2007, adjusted net earnings from continuing operations for the second quarter of 2007 of $252.8 million increased by 19.2% over net earnings from continuing operations of $212.1 million for the second quarter of 2006 and adjusted diluted net earnings per share from continuing operations for the second quarter of 2007 of $.61 increased by 17.3% over diluted net earnings per share from continuing operations of $.52 for the second quarter of 2006.

Excluding the impact of the $12.7 million intangible asset impairment recorded in the second quarter of 2007 and the $52.7 million charge to write off purchased in-process research and development in the first quarter of 2006, adjusted net earnings from continuing operations for the first half of 2007 of $494.6 million increased 20.5% over adjusted net earnings from continuing operations of $410.4 million for the first half of 2006 and adjusted diluted net earnings per share from continuing operations for the first half of 2007 of $1.19 increased by 19.0% over adjusted diluted net earnings per share from continuing operations of $1.00 for the first half of 2006.

Net earnings from continuing operations for the second quarter of 2007 were $240.1 million, representing a 13.2% increase over net earnings from continuing operations of $212.1 million for the second quarter of 2006. Diluted net earnings per share from continuing operations for the second quarter of 2007 increased 11.5% to $.58 compared to $.52 for the second quarter of 2006. Net earnings from continuing operations for the first half of 2007 were $481.9 million, representing a 34.7% increase over net earnings from continuing operations of $357.7 million for the first half of 2006. Diluted net earnings per share from continuing operations for the first half of 2007 increased 33.3% to $1.16 compared to $.87 for the first half of 2006.

Net earnings for the second quarter of 2007 were $269.1 million, representing a 25.8% increase over net earnings of $213.9 million for the second quarter of 2006. Diluted net earnings per share for the second quarter of 2007 increased 25.0% to $.65 compared to $.52 for the second quarter of 2006. Net earnings for the first half of 2007 were $512.6 million, representing a 41.8% increase over net earnings of $361.4 million for the first half of 2006. Diluted net earnings per share for the first half of 2007 increased 39.8% to $1.23 compared to $.88 for the first half of 2006.

                                Sales Analysis

Domestic sales were $936.5 million for the second quarter and $1,849.7 million for the first half of 2007, representing increases of 17.4% and 15.7%, respectively, as a result of higher shipments of Orthopaedic Implants and MedSurg Equipment.

International sales were $527.2 million for the second quarter and $1,039.5 million for the first half of 2007, representing increases of 13.6% and 13.4%, 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 favorable by $22.6 million in the second quarter and by $46.8 million in the first half of 2007. On a constant currency basis, international sales increased 8.8% in the second quarter and 8.3% in the first half of 2007.

Worldwide sales of Orthopaedic Implants were $883.3 million for the second quarter and $1,743.3 million for the first half of 2007, representing increases of 14.6% and 13.6%, respectively based on higher shipments of reconstructive (hip, knee and shoulder), trauma, spinal and craniomaxillofacial implant systems; bone cement; and the bone growth factor OP-1. On a constant currency basis, sales of Orthopaedic Implants increased 12.4% in the second quarter and 11.4% in the first half of 2007.

Worldwide sales of MedSurg Equipment were $580.4 million for the second quarter and $1,145.9 million for the first half of 2007, representing increases of 18.3% and 16.8%, respectively based on higher shipments of surgical equipment; surgical navigation systems; endoscopic, communications and digital imaging systems; as well as patient handling and emergency medical equipment. On a constant currency basis, sales of MedSurg Equipment increased 17.0% in the second quarter and 15.5% in the first half of 2007.

                     Physiotherapy Associates Divestiture

On June 4, 2007 the Company announced the sale of its outpatient physical therapy business, Physiotherapy Associates, to Water Street Healthcare Partners, for approximately $150 million in cash. The sale of Physiotherapy resulted in a second quarter 2007 gain of $25.7 million (net of income taxes), or $.06 per diluted share.

The Company's restated financial results reflecting Physiotherapy as a discontinued operation for the first quarter of 2007, each quarter of 2006, and for the years ended December 31, 2006 and 2005 on both a reported basis and an adjusted basis to exclude the impact of charges to write off purchased in-process research and development in 2006 and 2005 and to recognize the income tax expense associated with the repatriation of foreign earnings in 2005 are included as an attachment to this press release.

                                 Income Taxes

The Company's effective income tax rates on earnings from continuing operations for the second quarter and first half of 2007 were 27.6% and 27.9%, respectively, as compared to effective income tax rates on such earnings for the second quarter, first half and year ended December 31, 2006 of 27.8%, 30.9% and 29.5%, respectively. The effective income tax rates for the second quarter and first half of 2007 reflect the impact of the intangible asset impairment charge of $12.7 million (net of $7.1 million income tax benefit). The effective income tax rates for the first half and year ended December 31, 2006 reflect the impact of the non-deductibility for income tax purposes of the purchased in-process research and development charge associated with the acquisition of Sightline.

                               Outlook for 2007

The Company's outlook for 2007 continues to be optimistic regarding underlying growth rates in orthopaedic procedures and sales growth rates in the Company's broadly based range of products in orthopaedics and other medical specialties, despite the potential for continued pricing pressure in certain markets. The Company projects that adjusted diluted net earnings per share from continuing operations for 2007 will approximate $2.40, an increase of 20% over adjusted diluted net earnings per share from continuing operations of $2.00 in 2006. The latest financial forecast for 2007 includes a constant currency net sales increase in the range of 12% to 13%, up from the previous forecast of 11% to 13% growth, as a result of growth in shipments of Orthopaedic Implants and MedSurg Equipment. If foreign currency exchange rates hold near current levels, the Company anticipates a favorable impact on net sales of approximately 1.0% to 1.5% in the third quarter of 2007 and a favorable impact on net sales of approximately 1.0% to 2.0% for the full year of 2007.

                               Conference Call

As previously announced, the Company will conduct a conference call for financial analysts at 4:30 p.m., Eastern Time, today. To participate in the conference call dial 866-272-9941 (domestic) or 617-213-8895 (international) and enter the participant passcode 37696038. A simultaneous webcast of the call will be accessible via the Company's website at www.stryker.com. The call will be archived on this site for 90 days.

A recording of the call will also be available from 6:30 p.m., Eastern Time, today until 6:30 p.m. on Saturday, July 21, 2007. To hear this recording dial 888-286-8010 (domestic) or 617-801-6888 (international) and enter the passcode 48324012.

                          Forward-Looking Statements

This press release contains information that includes or is based on forward-looking statements within the meaning of the federal securities law that are subject to various risks and uncertainties that could cause the Company's actual results to differ materially from those expressed or implied in such statements. Such factors include, but are not limited to: pricing pressures generally, including cost-containment measures that could adversely affect the price of or demand for the Company's products; regulatory actions; unanticipated issues arising in connection with clinical studies and eventual United States Food and Drug Administration approval of new products; changes in reimbursement levels from third-party payors; a significant increase in product liability claims; changes in economic conditions that adversely affect the level of demand for the Company's products; changes in foreign exchange markets; changes in financial markets; and changes in the competitive environment. Additional information concerning these and other factors are contained in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

Stryker Corporation is one of the world's leading medical technology companies with the most broadly based range of products in orthopaedics and a significant presence in other medical specialties. Stryker works with respected medical professionals to help people lead more active and more satisfying lives. The Company's products include implants used in joint replacement, trauma, craniomaxillofacial and spinal surgeries; biologics; surgical, neurologic, ear, nose & throat and interventional pain equipment; and endoscopic, surgical navigation, communications and digital imaging systems; as well as patient handling and emergency medical equipment. For more information about Stryker, please visit the company web site at http://www.stryker.com.

                               STRYKER CORPORATION
        For the Three Month and Six Month Periods Ended June 30, 2007
                (Unaudited - In Millions Except Per Share Amounts)

    CONDENSED STATEMENTS        Second Quarter             Six Months
     OF EARNINGS         2007       2006  % Change   2007    2006    % Change

      Net sales        $1,463.7  $1,261.8    16.0 $2,889.2  $2,515.7    14.8
      Cost of sales       444.3     393.9    12.8    883.7     787.3    12.2

        GROSS PROFIT    1,019.4     867.9    17.5  2,005.5   1,728.4    16.0
          % of Sales       69.6      68.8             69.4     68.7

      Research, development
       and engineering
       expenses            92.1      75.9    21.3    176.7     153.0    15.5
      Selling, general and
       administrative
       expenses           581.6     493.0    18.0  1,149.7     994.7    15.6
      Intangibles
       amortization        11.0      10.1     8.9     22.2      20.3     9.4
      Intangible asset
       impairment          19.8        -       --     19.8        -       --
      Purchased in-process
       research and
       development           -         -       --       -       52.7  (100.0)

                          704.5     579.0    21.7  1,368.4   1,220.7    12.1

        OPERATING INCOME  314.9     288.9     9.0    637.1     507.7    25.5
          % of Sales       21.5      22.9             22.1      20.2

      Other income
       (expense)           16.9       4.9   244.9     31.1      10.3   201.9

        EARNINGS BEFORE
         INCOME TAXES     331.8     293.8    12.9    668.2     518.0    29.0

      Income taxes         91.7      81.7    12.2    186.3     160.3    16.2

        NET EARNINGS FROM
         CONTINUING
         OPERATIONS       240.1     212.1    13.2   481.9      357.7    34.7

      Net earnings from
       discontinued
       operations           3.3      1.8     83.3     5.0        3.7    35.1
      Net gain on sale of
       discontinued
       operations          25.7       -        --    25.7         -       --

        NET EARNINGS FROM
         DISCONTINUED
         OPERATIONS        29.0      1.8       --    30.7        3.7      --

        NET EARNINGS     $269.1   $213.9     25.8  $512.6     $361.4    41.8

      Net Earnings Per
       Share From
       Continuing
       Operations
        Basic             $0.59    $0.52     13.5   $1.18      $0.88    34.1
        Diluted           $0.58    $0.52     11.5   $1.16      $0.87    33.3

      Net Earnings Per
       Share From
       Discontinued
       Operations
        Basic             $0.07       $-       --   $0.08      $0.01      --
       Diluted            $0.07       $-       --   $0.07      $0.01      --

      Net Earnings Per
       Share
        Basic             $0.66    $0.53     24.5   $1.25      $0.89    40.4
        Diluted           $0.65    $0.52     25.0   $1.23      $0.88    39.8

      Average Shares
       Outstanding
        Basic             409.4    406.4            409.0      406.0
        Diluted           416.9    410.7            416.5      411.0



    RECONCILIATION OF REPORTED NET EARNINGS FROM CONTINUING OPERATIONS
     TO ADJUSTED NET EARNINGS FROM CONTINUING OPERATIONS

                              Second Quarter                Six Months
                         2007       2006   % Change  2007    2006    % Change

      NET EARNINGS FROM
       CONTINUING
       OPERATIONS
      Reported net
       earnings from
       continuing
       operations        $240.1   $212.1     13.2  $481.9     $357.7    34.7
      Intangible asset
       impairment          12.7       -        --    12.7         -       --
      Purchased in-process
       research and
       development           -        -        --      -        52.7  (100.0)
      Adjusted net
       earnings
       from
       continuing
       operations        $252.8   $212.1     19.2  $494.6     $410.4    20.5

      DILUTED NET EARNINGS
       PER SHARE FROM
       CONTINUING
       OPERATIONS
      Reported diluted
       net earnings
       per share from
       continuing
       operations         $0.58    $0.52     11.5   $1.16     $0.87     33.3
      Intangible asset
       impairment         $0.03      $-        --   $0.03       $-        --
      Purchased in-process
       research and
       development          $-       $-        --     $-      $0.13   (100.0)
      Adjusted diluted
       net earnings per
       share from
       continuing
       operations        $0.61    $0.52      17.3  $1.19      $1.00     19.0



                               STRYKER CORPORATION
          For the Three Month and Six Month Periods Ended June 30, 2007
                            (Unaudited - In Millions)

                                              Second Quarter
                                                               % Change
                                                                     Constant
    CONDENSED SALES ANALYSIS     2007           2006      Reported   Currency

      Domestic                  $936.5         $797.9       17.4       17.4
      International              527.2          463.9       13.6        8.8


        NET SALES             $1,463.7       $1,261.8       16.0       14.2


      Orthopaedic Implants      $883.3          $771.1      14.6       12.4
      MedSurg Equipment          580.4           490.7      18.3       17.0

        NET SALES             $1,463.7        $1,261.8      16.0       14.2


                                               Six Months
                                                               % Change
                                                                     Constant
    CONDENSED SALES ANALYSIS     2007           2006      Reported   Currency

      Domestic                $1,849.7        $1,598.8      15.7       15.7
      International            1,039.5           916.9      13.4        8.3

        NET SALES             $2,889.2        $2,515.7      14.8       13.0

      Orthopaedic Implants    $1,743.3        $1,534.7      13.6       11.4
      MedSurg Equipment        1,145.9           981.0      16.8       15.5

        NET SALES             $2,889.2        $2,515.7      14.8       13.0



                                                   Second Quarter
                                                     % Change

                                  Domestic   International        Total
                                                    Constant          Constant
                                  Reported Reported Currency Reported Currency
    SUPPLEMENTAL SALES
     GROWTH ANALYSIS

    Orthopaedic Implants sales:
      Hips                               6      10       5        8        6
      Knees                             16      14       9       15       13
      Trauma                            35      11       7       20       18
      Spine                             30      17      13       26       24
      Craniomaxillofacial               27       8       4       20       18
      Total Orthopaedic Implants        17      12       7       15       12

    MedSurg Equipment sales:
      Surgical equipment and surgical
       navigation systems               18      22      16       19       18
      Endoscopic, communications and
       digital imaging systems          21      22      17       22       20
      Patient handling and emergency
       medical equipment                13       3       0       11       11
      Total MedSurg Equipment           18      19      14       18       17



                                                  Six Months
                                                   % Change

                                  Domestic   International        Total
                                                    Constant          Constant
                                  Reported Reported Currency Reported Currency
    SUPPLEMENTAL SALES
     GROWTH ANALYSIS

    Orthopaedic Implants sales:
      Hips                               5      10       4        7        5
      Knees                             17      14       8       16       13
      Trauma                            33       8       4       17       14
      Spine                             26      20      15       24       23
      Craniomaxillofacial               25       9       5       19       17
      Total Orthopaedic Implants        16      11       6       14       11

    MedSurg Equipment sales:
      Surgical equipment and surgical
       navigation systems               15      23      17       17       16
      Endoscopic, communications and
       digital imaging systems          17      24      18       19       18
      Patient handling and emergency
       medical equipment                14       4       2       12       12
      Total MedSurg Equipment           16      20      15       17       16



                               STRYKER CORPORATION
                            (Unaudited - In Millions)

                                                  June 30         December 31
    CONDENSED BALANCE SHEETS                        2007              2006

       ASSETS

       Cash and cash equivalents                    $170.0            $416.6

       Marketable securities                       1,610.2             998.2

       Accounts receivable (net)                     940.5             867.2

       Inventories                                   733.4             677.6

       Other current assets                          608.2             574.7

         TOTAL CURRENT ASSETS                      4,062.3           3,534.3

       Property, Plant and Equipment (net)           932.7             914.9

       Goodwill and Other Intangibles (net)          905.3             914.8

       Other Assets                                  519.6             509.8

         TOTAL ASSETS                             $6,419.9          $5,873.8

       LIABILITIES AND SHAREHOLDERS' EQUITY

       Current Liabilities                        $1,039.9          $1,351.5

       Other Liabilities                             578.6             331.3

       Shareholders' Equity                        4,801.4           4,191.0

       TOTAL LIABILITIES AND
        SHAREHOLDERS' EQUITY                      $6,419.9          $5,873.8



                               STRYKER CORPORATION
          For the Three Month and Six Month Periods Ended June 30, 2007
                            (Unaudited - In Millions)

                                             Second Quarter      Six Months
    CONDENSED STATEMENTS OF CASH FLOWS       2007      2006    2007      2006

      OPERATING ACTIVITIES

      Net earnings from continuing
       operations                            $240.1  $212.1   $481.9   $357.7

      Depreciation                             32.8    28.7     64.7     55.8

      Amortization                             57.5    51.1    112.7     99.9

      Intangible asset impairment              19.8     -       19.8      -

      Gain on sale of discontinued
       operations                             (40.7)    -      (40.7)     -

      Purchased in-process research and
       development                              -       -        -       52.7

      Changes in working capital and other    (98.6)  (96.1)  (274.8)  (349.6)

      NET CASH PROVIDED BY OPERATING
       ACTIVITIES                             210.9   195.8    363.6    216.5

      INVESTING ACTIVITIES

      Acquisitions, net of cash acquired      (31.9)  (31.7)   (37.6)   (76.2)

      Proceeds from sale of discontinued
       operations                             144.7     -      144.7      -

      Purchases of marketable securities,
       net                                   (437.7)  (62.3)  (609.1)  (172.7)

      Purchases of property, plant and
       equipment                              (39.1)  (49.5)   (79.9)   (99.0)

      Proceeds from sales of property,
       plant and equipment                      0.1     0.1      0.3      0.2

      Other                                    (0.4)   (3.0)    (1.6)    (8.3)

        NET CASH USED IN INVESTING
         ACTIVITIES                          (364.3) (146.4)  (583.2)  (356.0)

      FINANCING ACTIVITIES

      Borrowings (repayments) of debt, net      1.9  (128.7)     2.3   (226.8)

      Dividends paid                            -       -      (89.7)   (44.6)

      Other                                    25.8     8.1     56.3     46.3

        NET CASH PROVIDED BY (USED IN)
         FINANCING ACTIVITIES                  27.7  (120.6)   (31.1)  (225.1)

      Effect of exchange rate changes on
       cash and cash equivalents                1.4     2.5      4.1      3.1

        CHANGE IN CASH AND CASH EQUIVALENTS $(124.3) $(68.7) $(246.6) $(361.5)




                             STRYKER CORPORATION
                       CONDENSED STATEMENTS OF EARNINGS
   RESTATED TO REFLECT PHYSIOTHERAPY ASSOCIATES AS A DISCONTINUED OPERATION
                (Unaudited - In Millions Except Per Share Amounts)

                                        Quarter Ended
                     2007                            2006
                    March 31      Dec 31     Sept 30    June 30    March 31

    Net sales       $1,425.5     $1,400.4     $1,231.1    $1,261.8   $1,253.9
    Cost of sales      439.4        444.5        384.8       393.9      393.4


      GROSS PROFIT     986.1        955.9        846.3       867.9      860.5
        % of Sales      69.2         68.3         68.7        68.8       68.6

    Research, development
     and engineering
     expenses           84.6         91.2         80.4        75.9       77.1
    Selling, general
     and administrative
     expenses          568.1        549.5        502.8       493.0      501.7
    Intangibles
     amortization       11.2         11.4         11.0        10.1       10.2
    Purchased in-process
     research and
     development          -            -            -           -        52.7

                       663.9        652.1        594.2       579.0      641.7

      OPERATING INCOME 322.2        303.8        252.1       288.9      218.8
        % of Sales      22.6         21.7         20.5        22.9       17.4

    Other income
     (expense)          14.2         11.8          8.1         4.9        5.4

      EARNINGS BEFORE
       INCOME TAXES    336.4        315.6        260.2       293.8      224.2

    Income taxes        94.6         88.9         73.2        81.7       78.6

      NET EARNINGS
       FROM CONTINUING
       OPERATIONS      241.8        226.7        187.0       212.1      145.6

      NET EARNINGS
       FROM
       DISCONTINUED
       OPERATIONS        1.7          1.2          1.4         1.8        1.9

      NET EARNINGS    $243.5       $227.9       $188.4      $213.9      $147.5


    Net Earnings Per
     Share From
     Continuing
     Operations
      Basic            $0.59        $0.56        $0.46       $0.52       $0.36
      Diluted          $0.58        $0.55        $0.45       $0.52       $0.35

    Net Earnings Per
     Share From
     Discontinued
     Operations
      Basic             $-           $-           $-          $-          $-
      Diluted           $-           $-           $-          $-          $-

    Net Earnings Per Share
      Basic          $0.60        $0.56       $0.46       $0.53         $0.36
      Diluted        $0.59        $0.55       $0.46       $0.52         $0.36

    Average Shares
     Outstanding
      Basic          408.6        407.4       406.7       406.4         405.7
      Diluted        416.0        413.8       411.6       410.7         411.3


                                                     Year Ended December 31
                                                        2006         2005

    Net sales                                       $5,147.2       $4,608.9
    Cost of sales                                    1,616.6        1,489.2

      GROSS PROFIT                                   3,530.6        3,119.7
        % of Sales                                      68.6           67.7

    Research, development and
     engineering expenses                              324.6          284.7
    Selling, general and
     administrative expenses                         2,047.0        1,839.4
    Intangibles amortization                            42.7           47.6
    Purchased in-process research and development       52.7           15.9

                                                     2,467.0        2,187.6

      OPERATING INCOME                               1,063.6          932.1
        % of Sales                                      20.7           20.2

    Other income (expense)                              30.2            4.9

      EARNINGS BEFORE INCOME TAXES                   1,093.8          937.0

    Income taxes                                       322.4          304.5

      NET EARNINGS FROM CONTINUING OPERATIONS          771.4          632.5

      NET EARNINGS FROM DISCONTINUED OPERATIONS          6.3           11.1

      NET EARNINGS                                    $777.7         $643.6


    Net Earnings Per Share From Continuing Operations
      Basic                                            $1.90          $1.57
      Diluted                                          $1.87          $1.54

    Net Earnings Per Share From Discontinued Operations
      Basic                                            $0.02          $0.03
      Diluted                                          $0.02          $0.03

    Net Earnings Per Share
      Basic                                            $1.91          $1.59
      Diluted                                          $1.89          $1.57

    Average Shares Outstanding
      Basic                                            406.5          403.7
      Diluted                                          411.8          410.8


     RECONCILIATION OF REPORTED NET EARNINGS FROM CONTINUING OPERATIONS TO
      ADJUSTED NET EARNINGS FROM CONTINUING OPERATIONS

                                        Quarter Ended
                     2007                           2006
                    March 31      Dec 31     Sept 30    June 30    March 31
    NET EARNINGS
     FROM CONTINUING
     OPERATIONS
    Reported net
     earnings from
     continuing
     operations      $241.8      $226.7      $187.0       $212.1       $145.6
    Purchased
     in-process
     research and
     development         -           -           -            -          52.7
    Income taxes on
     repatriation of
     foreign earnings    -           -           -            -            -
    Adjusted net
     earnings from
     continuing
     operations       $241.8      $226.7    $187.0        $212.1       $198.3

    DILUTED NET EARNINGS PER SHARE FROM
    CONTINUING OPERATIONS
    Reported diluted
     net earnings per
     share from
     continuing
     operations        $0.58       $0.55     $0.45         $0.52       $0.35
    Purchased
     in-process
     research and
     development        $-          $-        $-            $-         $0.13
    Income taxes on
     repatriation of
     foreign earnings   $-          $-        $-            $-          $-
    Adjusted diluted
     net earnings per
     share from
     continuing
     operations        $0.58      $0.55      $0.45         $0.52      $0.48


                                                   Year Ended December 31
                                                       2006           2005
    NET EARNINGS FROM CONTINUING OPERATIONS
    Reported net earnings from continuing operations  $771.4         $632.5
    Purchased in-process research and development       52.7           15.9
    Income taxes on repatriation of foreign earnings       -           27.4
    Adjusted net earnings from continuing operations  $824.1         $675.8

    DILUTED NET EARNINGS PER SHARE FROM
     CONTINUING OPERATIONS
    Reported diluted net earnings per share
     from continuing operations                        $1.87          $1.54
    Purchased in-process research and development      $0.13          $0.04
    Income taxes on repatriation of foreign earnings    $-            $0.07
    Adjusted diluted net earnings
     per share from continuing operations              $2.00          $1.65

SOURCE Stryker Corporation
CONTACT: Katherine A. Owen, Vice President, Strategy and Investor
Relations of Stryker Corporation, +1-269-385-2600/
/Web site: http://www.stryker.com/
(SYK)

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