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Stryker 2Q profit slips 3 percent after deals(2)

Tue, 07/19/2011 - 3:47pm
The Associated Press

Orthopedic implant and surgical products maker Stryker Corp. said Tuesday its profit fell 3 percent in the second quarter as it bought competitor Orthovita, and paid $1.5 billion for a Boston Scientific Corp. business.

Stryker said its net income declined to $309.1 million, or 79 cents per share, from $319 million, or 80 cents per share, one year ago. Excluding acquisition and integration costs related to the purchase of the neurovascular business and of Orthovita Inc., Stryker said it earned 90 cents per share. Its revenue grew 16 percent, to $2.05 billion from $1.76 billion.

Analysts expected the company to report an adjusted profit of 90 cents per share and $2 billion in revenue, according to a FactSet survey.

The neurovascular business makes devices that are used to treat brain aneurysms and other vascular diseases that affect the brain. Stryker bought it from Boston Scientific in early January. In late June, Stryker acquired former competitor Orthovita for $304 million.

The company said revenue from sales of reconstructive products rose 7.4 percent to $916 million. Most of the growth came from more favorable currency exchange rates, but Stryker said shipments of hip, extremities, and trauma products increased. Sales of knee and other implants decreased.

Revenue from its MedSurg equipment business grew 15 percent to $773 million. Stryker said it sold more surgical equipment and surgical navigation systems, along with endoscopic and communications systems and patients handling and emergency medical equipment. Revenue from the neurotechnology and spine unit rose 53 percent to $356 million following its acquisition of the Boston Scientific unit.

Stryker's stock has traded between $42.74 and $65.21 in the last year, and closed at $59.16 on Tuesday, up 90 cents.

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