stryker corp (SYK) Key Developments
Stryker Corporation Announces Pricing of $750 Million Senior Notes Offering
Oct 26 15
Stryker Corporation announced that it has priced an offering to sell $750 million of senior unsecured notes due 2025. The Notes will bear interest at 3.375% per year and, unless previously redeemed, will mature on November 1, 2025. The Notes are expected to settle on October 29, 2015, subject to customary closing conditions. The company intends to use the net proceeds from the offering to repay $200 million of existing commercial paper at its maturity and for working capital and other general corporate purposes, including acquisitions, stock repurchases and other business opportunities. Barclays Capital Inc., Citigroup Global Markets Inc. and Goldman, Sachs & Co. are acting as active joint book-running managers for the offering.
Stryker Eyes Acquisitions
Oct 26 15
Stryker Corporation (NYSE:SYK) has announced a Fixed-Income Offering. The company intends to use the net proceeds from the offering to repay $200 million of existing commercial paper at its maturity and for working capital and other general corporate purposes, including acquisitions, stock repurchases and other business opportunities.
Stryker Corporation Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2015; Provides Earnings Guidance for the Full Year of 2015
Oct 22 15
Stryker Corporation reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2015. For the quarter, the company’s net sales were $2,420 million compared to $2,389 million a year ago, increased 1.3% in the quarter as reported and 5.9% in constant currency, as net sales were negatively impacted by 4.6% due to the impact of foreign currency exchange rates. Excluding the 0.6% impact of acquisitions, net sales in the quarter increased 5.3% in constant currency, including 6.6% from increased unit volume partially offset by 1.3% lower prices. Operating income was $378 million compared to $450 million a year ago. Earnings before income taxes were $345 million compared to $425 million a year ago. Net earnings were $301 million or $0.79 per diluted share, compared to $57 million or $0.16 per diluted share, a year ago. Reported net earnings include charges for the Rejuvenate and ABG II recall, tax matters, acquisition and integration related activities, additional cost of sales for inventory sold that was "stepped up" to fair value related to acquisitions, and restructuring to related activities. The effect of each of these matters on reported net earnings and diluted net earnings per share appears in the reconciliation of GAAP to non to GAAP financial measures provided below. Excluding the impact of these charges, reduces reported gross profit margin in the quarter from 67.1% to 66.9% and increases reported operating income margin in the quarter from 15.6% to 24.9%. Excluding the impact of the items described above, adjusted net earnings of $476 million increased 8.4% in the quarter compared to $439 million a year ago. Adjusted diluted net earnings per share of $1.25 increased 8.7% in the quarter compared to $1.15 a year ago.
For the nine months, the company’s net sales were $7,231 million compared to $7,057 million a year ago. Operating income was $1,213 million compared to $778 million a year ago. Earnings before income taxes were $1,123 million compared to $699 million a year ago. Net earnings were $917 million or $2.40 per diluted share, compared to $255 million or $0.67 per diluted share, a year ago. Net cash provided by operating activities was $228 million compared to $1,103 million a year ago. Purchases of property, plant and equipment were $191 million compared to $172 million a year ago. Adjusted net earnings were $1,358 million or $3.56 per share, compared to $1,258 million or $3.29 per share a year ago.
The company provided earnings guidance for the full year of 2015. The company expects 2015 constant currency sales growth in the range of 6.5% to 7.5%, including organic sales growth in the range of 5.5% to 6.5%. Based on current foreign currency exchange rates, the company expects adjusted diluted net earnings per share to be in the range of $5.07 to $5.12 for the full year. If foreign currency exchange rates hold near current levels, the company expects sales in the full year of 2015 to be negatively impacted by approximately 4.0% and adjusted diluted net earnings per share to be negatively impacted by approximately $0.25 in the full year. The tax rate third quarter of 2015 brings the company's adjusted rate to 17.5% on a year-to-date basis. The company still expects the extenders to be approved late in the fourth quarter. However, if not approved, it would negatively impact the company's full year per-share earnings guidance by $0.03 per share to $0.04 per share.
Stryker Corporation Mulls Acquisitions
Oct 22 15
Stryker Corporation (NYSE:SYK) is seeking acquisitions. Kevin Lobo, Chairman and Chief Executive Officer of Stryker Corporation, said, “And as it relates to inorganic, all of our divisions are constantly looking for acquisitions. I certainly don't feel compelled to do a deal, because you can see we're posting nice growth with our organic performance, but we're always on the lookout for acquisitions, but that's not unique to spine. That applies to all of our divisions”.
Ziehm Imaging Inc. and Stryker Partner to Provide Surgical Navigation with Ziehm Vision RFD 3D
Oct 14 15
Ziehm Imaging Inc. and the Navigation Division of Stryker Corporation announced a co-marketing agreement in which Stryker Navigation will promote Ziehm Vision RFD 3D for the specialties of neurosurgery, spine surgery, orthopedic surgery and trauma surgery. Ziehm Vision RFD 3D is the only mobile 3D Carm with a 30 cm x 30 cm flatpanel detector that combines 2D and 3D functionality in one device providing surgeons the ability to create 3D reconstructions in the operating room to ensure all implants have been optimally placed. Ziehm Vision RFD 3D offers a 25 kW generator with an iterative reconstruction algorithm and patented SmartScan rotation to offer 180° image information of anatomical structures. With up to 7 vertebrae in one scan volume, it offers the 3D image volume in the market. The new mobile Carm delivers gamechanging 3D imaging and is ideally suited for orthopedics, traumatology and spinal surgery, but also for demanding cardiovascular hybrid applications. Ziehm Vision RFD 3D can be utilized with surgical navigation products to facilitate the guidance of surgical instruments relative to a patient's anatomy, improving visualization and precision during minimally invasive surgical interventions. The agreement will enable Stryker and Ziehm Imaging, to offer a turnkey surgical solution for customers seeking to acquire these innovative technologies.