Rejuvenate hip recall hits Stryker's Q2 profits
Stryker Corp.'s 2nd-quarter profits plunge nearly 35% on costs related to the recall of its Rejuvenate hip implant, as it misses Wall Street's earnings expectations and lowers its 2013 outlook.
Stryker (NYSE:SYK) said an unexpected, $170 million hit related to its recalled Rejuvenate hip implant pushed its 2nd-quarter profits down nearly 35% and lowered its earnings outlook for the rest of the year.
The Kalamazoo, Mich.-based medical device company posted profits of $213 million, or 56¢ per share, on sales of $2.21 billion during the 3 months ended June 30, for sales growth of 5.0% but a bottom-line slide of 34.5%.
Adjusted to exclude 1-time items like the recall costs, earnings per share were $1 even, coming in 3¢ under Wall Street's forecast.