Stryker Corporation reported 2015 operating results for the fourth quarter and full year. Consolidated net sales of $2.7 billion and $9.9 billion increased 3.7% and 2.8% as reported in the quarter and full year.
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This is an increase of 7% in constant currency in both periods, as foreign currency exchange rates negatively impacted net sales by 3.2% and 4.2%.
Excluding the 0.6% and 0.9% impact of acquisitions, net sales increased 6.4% and 6.1% in constant currency including 8.1% and 7.6% from increased unit volumes partially offset by 1.7% and 1.6% in lower prices.
Orthopaedics net sales of $1.1 billion and $4.2 billion increased 3.3% and 1.7% as reported in the quarter and full year and 7.1% and 6.7% in constant currency, as foreign currency exchange rates negatively impacted net sales by 3.8% and 5.0%. Acquisitions had no impact on net sales in the quarter and 0.5% in the full year.
Excluding the impact of acquisitions, net sales increased 7.1% and 6.1% in constant currency including 9.1% and 8.6% from increased unit volumes partially offset by 2.1% and 2.4% in lower prices.
MedSurg net sales of $1.1 billion and $3.9 billion increased 3.0% in both periods and 5.6% and 6.2% in constant currency in the quarter and full year, as foreign currency exchange rates negatively impacted net sales by 2.6% and 3.2%.
Excluding the 1.5% and 1.7% impact of acquisitions, net sales increased 4.2% and 4.5% in constant currency including 5.1% and 4.8% from increased unit volumes partially offset by 0.9% and 0.3% in lower prices.
Neurotechnology and Spine net sales of $483 million and $1.8 billion increased 6.5% and 5.0% as reported in the quarter and full year and 9.9% and 9.5% in constant currency, as foreign currency exchange rates negatively impacted net sales by 3.4% and 4.5%.
Acquisitions had no impact on net sales in the quarter and 0.1% in the full year. Excluding the impact of acquisitions, net sales increased 9.9% and 9.4% in constant currency including 12.3% and 11.6% from increased unit volumes partially offset by 2.4% and 2.3% in lower prices.
Reported net earnings of $522 million and $1.4 billion increased 100.8% and 179.4% in the quarter and full year. Reported net earnings per diluted share of $1.38 and $3.78 increased 106.0% and 182.1%.
Reported net earnings includes charges for the Rejuvenate and ABG II recall, amortization of intangible assets, restructuring-related activities and acquisition and integration related activities. The effect of each of these matters on reported net earnings and net earnings per diluted share appears in the reconciliation of actual results to adjusted results.
Excluding the impact of these charges, reported gross profit margin increased in the quarter from 67.0% to 67.1% and for the full year from 66.4% to 66.5% and reported operating income margin increased in the quarter from 23.9% to 27.4% and for the full year from 18.7% to 24.9%.
Excluding the impact of the items described above, adjusted net earnings(2) of $591 million and $1.9 billion increased 7.1% and 7.7%, in the quarter and full year. Adjusted net earnings per diluted share(1) of $1.56 and $5.12 increased 8.3% and 8.2% in the quarter and full year.
Stryker expects 2016 constant currency sales growth in the range of 5.0% to 6.0% and adjusted net earnings per diluted share to be in the range of $1.17-$1.22 and $5.50-$5.70 for the first quarter and full year.
If foreign currency exchange rates hold near current levels, Stryker expects net sales in the first quarter and full year of 2016 to be negatively impacted by approximately 1.1% and 1% and adjusted net earnings per diluted share to be negatively impacted by approximately $0.02-$0.03 and $0.12-$0.13 in the first quarter and full year. ■