* 3rd quarter adjusted EPS $0.97 vs Street view $0.98
* Sales rise 1 pct
* 2012, 2013 earnings estimates lowered
* Shares fall 2 percent afte -hours
Oct 17 Orthopedic implant maker Stryker Corp
said third-quarter sales rose just 1 percent on soft
pricing and unfavorable foreign currency rates and it now
expects lower earnings for the rest of this year and 2013.
The company forecast full-year 2012 and 2013 earnings below
Wall Street's estimates, and its shares fell more than 2 percent
in after-hours trading.
"We expect market conditions to remain challenging in Europe
and for capital equipment, and as a result we are lowering our
earnings outlook for 2012 and 2013," Kevin Lobo, Stryker's chief
executive, said in a statement.
Stryker, which makes artificial hips and knees, as well as
hospital beds and surgical instruments, earned 97 cents a share,
excluding one-time charges. Analysts on average expected 98
cents a share, according to Thomson Reuters I/B/E/S.
Net sales totaled $2.05 billion, just short of the $2.07
billion forecast by analysts.
Stryker said sales volumes rose, but price decreases cut the
total by 0.9 percent and unfavorable currency exchange rates
lopped off another 1.9 percent.
The Kalamazoo, Michigan-based company expects full-year
adjusted earnings of $4.04 to $4.07 per share for 2012 and $4.25
to $4.40 for 2013.
Analysts had projected 2012 adjusted earnings of $4.09 per
share and 2013 EPS of $4.45.
Stryker said, if currency exchange rates hold near current
levels, it expects a negative impact of as much as 1 percent on
Third-quarter sales of reconstructive joints, including hips
and knees, fell 1.1 percent, while net sales of medical and
surgical instruments rose 1.7 percent and neurotechnology and
spine net sales rose 4.7 percent.
The orthopedic implant sector was especially hard hit in the
economic downturn as patients delayed elective medical
procedures, either because they lacked insurance, faced higher
out-of-pocket costs with the insurance they had, or feared
taking time off from work.
Stryker's net profit for the third quarter totaled $383.5
million, or 92 cents per share, compared with $388.4 million, or
84 cents per share, a year earlier.
The company's shares, which closed at $52.82 on the New York
Stock Exchange, were trading at $51.60 after hours.