Summary
Stryker Corporation reported total revenues of $9.02 billion for the fiscal year ended December 30, 2013, a 4.2% increase over the prior year. Net earnings for the period were $1.01 billion, a decrease of 22.5% compared to $1.30 billion in 2012. This decline in net earnings was significantly influenced by charges related to product recalls, specifically the Rejuvenate and ABG II hip stems, as well as acquisition and integration costs. The company demonstrated revenue growth across its three main segments: Reconstructive, MedSurg, and Neurotechnology and Spine, driven primarily by increased unit volumes, particularly in trauma and extremities products, neurotechnology, hips, and endoscopy. Stryker continued its strategic acquisition approach, notably acquiring MAKO Surgical Corp. for approximately $1.68 billion to enhance its robotic-assisted surgery capabilities and Trauson Holdings Company Limited for $751 million to expand its presence in China and the value segment of emerging markets. The company also announced its intent to acquire Patient Safety Technologies, Inc. in early 2014. Despite ongoing legal and regulatory matters, including reserves for the hip stem recalls totaling between $790 million and $1.235 billion, Stryker maintained a strong balance sheet with significant cash and cash equivalents. The company also increased its dividend payments and continued share repurchases, signaling confidence in its financial position and future prospects.
Financial Highlights
53 data points| Revenue | $9.02B |
| Cost of Revenue | $3.00B |
| Gross Profit | $6.02B |
| R&D Expenses | $536.00M |
| SG&A Expenses | $3.47B |
| Operating Expenses | $4.76B |
| Operating Income | $1.26B |
| Interest Expense | $83.00M |
| Net Income | $1.01B |
| EPS (Basic) | $2.66 |
| EPS (Diluted) | $2.63 |
| Shares Outstanding (Basic) | 378.60M |
| Shares Outstanding (Diluted) | 382.10M |
Key Highlights
- 1Revenue grew by 4.2% to $9.02 billion in 2013, indicating continued top-line expansion.
- 2Significant strategic acquisitions of MAKO Surgical Corp. ($1.68 billion) and Trauson Holdings Company Limited ($751 million) were completed, aimed at bolstering robotic surgery capabilities and emerging market presence.
- 3Net earnings decreased by 22.5% to $1.01 billion, impacted by substantial charges related to product recalls (Rejuvenate and ABG II hip stems) and acquisition-related expenses.
- 4The Reconstructive segment saw a 4.8% increase in net sales, driven by trauma and extremities, and hips, despite the ongoing hip recall issues.
- 5Stryker maintained a strong financial position with $3.98 billion in cash, cash equivalents, and marketable securities at year-end 2013.
- 6The company raised $1 billion in senior unsecured notes in March 2013 to support general corporate purposes, including potential acquisitions and stock repurchases.
- 7Despite significant recall-related charges, the company continued to return capital to shareholders through a 24.7% increase in dividend payments per share in 2013.