Stryker 4Q revenue rises 11 percent

KALAMAZOO, Mich. — Medical device maker Stryker Corp. said Tuesday its sales grew about 11 percent in the fourth quarter.

The company said its sales increased to approximately $2.2 billion from $1.99 billion a year ago. Excluding the effects of changes in foreign currency exchange rates, Stryker said sales from its reconstructive business grew about 1 percent, and sales at its MedSurg equipment business increased 11 percent. Sales from its neurotechnology and spine business grew about 47 percent.

Stryker said its quarterly results will include a benefit of 26 cents per share, or $99 million after taxes, from a favorable settlement with the Internal Revenue Service, which was looking into Stryker's tax returns for 2003 through 2007. It also expects charges of 16 cents per share, or $60 million after taxes, for job cuts and other restructuring activities.

FactSet says analysts expect the company to report a profit of $1.03 per share in the fourth quarter, excluding one-time items, and $2.23 billion in revenue.

In the fourth quarter of 2010, Stryker reported a profit of 74 cents per share, or 93 cents per share excluding one-time items.

Stryker narrowed its full-year profit guidance and said it expects to report income of $3.72 to $3.74 per share excluding one-time items for 2011. Previously the company said it expected to earn $3.70 to $3.74 per share. It said revenue will total about $8.3 billion. Stryker said it plans to report its quarterly and full-year results Jan. 24.

Stryker said its adjusted per-share profit will grow more than 10 percent in 2012, implying $4.09 to $4.11 a share based on its latest guidance. Analysts are expecting $4.12 a share according to FactSet.

It said it believes revenue will grow 3.5 to 6.5 percent if changes in currency exchange rates are excluded. The company said changes in those exchange rates will reduce its revenue by 0.5 to 1.5 percent for the full year.

Shares of Stryker rose 46 cents to $52.26 Tuesday, and gained $1.05, or 2 percent, to $53.31 in aftermarket trading.