8-KEarnings & ResultsExhibits & Filings

STRYKER CORP 8-K Report, Financial Results (Oct 20, 2009)

Filed October 20, 2009For Securities:SYK

Summary

Stryker Corporation (SYK) filed an 8-K on October 20, 2009, reporting its third quarter 2009 financial results, which were released via press release on the same date. The filing highlights the company's use of non-GAAP financial measures, including "constant currency," "adjusted net earnings," and "adjusted diluted net earnings per share," to provide a more consistent and comparable view of its operational performance. These measures are presented to offer insights into underlying business trends, excluding the impact of foreign currency fluctuations and restructuring charges. The company emphasizes that these non-GAAP measures are supplemental and should not replace GAAP-reported results. Management utilizes these metrics for internal reviews, trend analysis, and bonus plan calculations. For investors, these adjusted figures are intended to aid in evaluating period-to-period performance and understanding potential future operating results on a comparable basis, particularly in navigating the impact of currency exchange rates and one-time restructuring costs.

Key Highlights

  • 1Stryker announced its third quarter 2009 financial results via a press release filed as an exhibit.
  • 2The company disclosed its use of non-GAAP financial measures: "constant currency," "adjusted net earnings," and "adjusted diluted net earnings per share."
  • 3Constant currency measures are used to remove the impact of foreign currency exchange rate fluctuations for sales performance analysis.
  • 4Adjusted net earnings and EPS exclude restructuring charges from both 2009 and 2008 to ensure comparability.
  • 5Management uses these non-GAAP measures for business segment reviews, future trend analysis, and bonus plan calculations.
  • 6The company advises investors to review both GAAP and non-GAAP measures and not rely solely on any single metric.
  • 7The filing includes a reconciliation for 2008 adjusted diluted net earnings per share, showing $2.78 reported EPS with $0.05 in restructuring charges, leading to $2.83 adjusted EPS.

Frequently Asked Questions

The main purpose of this 8-K filing is to report Stryker Corporation's third quarter 2009 operating results, which were announced in a press release on the same day. It also details the non-GAAP financial measures the company uses for performance analysis.

Stryker uses these non-GAAP measures to provide investors with a more consistent and comparable view of its financial performance. 'Constant currency' removes foreign exchange rate impacts on sales, while 'adjusted net earnings' and 'adjusted diluted net earnings per share' exclude restructuring charges from prior periods (2008 and 2009) that can distort the trend of earnings.

Constant currency results are calculated by translating current year financial results using the average foreign currency exchange rates from the prior year. This method helps to isolate sales performance by removing the volatility and impact of currency fluctuations.

Stryker encourages investors to review its consolidated financial statements and other publicly filed reports in their entirety. The company specifically advises against relying solely on any single financial measure, urging a comprehensive review of both GAAP-reported results and the supplemental non-GAAP measures provided.