Stryker Operating Results for Quarter Ended September 30, 2009

KALAMAZOO, Mich., Oct. 20 /PRNewswire-FirstCall/ — Stryker Corporation (NYSE: SYK – News) reported operating results for the quarter ended September 30, 2009 as follows:
Third Quarter Highlights
•Net sales of $1,653 million increased 1.2% on a constant currency basis (flat as reported)
•Orthopaedic Implants sales increased 6.9% on a constant currency basis (5.5% increase as reported)
•MedSurg Equipment sales decreased 6.7% on a constant currency basis (7.7% decrease as reported)
•Recorded restructuring charges of $48 million (net of income tax benefits)
•Adjusted net earnings increased 1.3% from $274 million to $277 million and adjusted diluted net earnings per share increased 4.5% from $0.66 to $0.69
•Reported net earnings decreased 16.4% from $274 million to $229 million and reported diluted net earnings per share decreased 13.6% from $0.66 to $0.57

“We are pleased to deliver solid results in a challenging environment with all of our orthopaedic implant businesses posting accelerated worldwide revenue growth, led by strong performances in the U.S. In addition, both our Endoscopy and Medical franchises showed a modest rebound with sequentially higher sales over the second quarter of 2009 despite continued softness in hospital spending,” commented Stephen P. MacMillan, President and Chief Executive Officer.

Net sales were $1,653 million in both the third quarter of 2009 and the third quarter of 2008. On a constant currency basis, net sales increased 1.2% for the third quarter.

Net earnings for the third quarter of 2009 were reduced by $48 million of restructuring charges (net of income tax benefits) related to decisions to terminate certain third-party agent agreements at the Company’s EMEA Division, to simplify the organization structure at its Biotech, EMEA, Japan and Canada divisions and to discontinue selling certain products.

Excluding the impact of the 2009 restructuring charges, adjusted net earnings for the third quarter of 2009 were $277 million, representing a 1.3% increase compared to net earnings of $274 million for the third quarter of 2008. Adjusted diluted net earnings per share for the third quarter of 2009 were $0.69, representing a 4.5% increase compared to $0.66 for the third quarter of 2008.

Net earnings for the third quarter of 2009 were $229 million, representing a 16.4% decrease compared to net earnings of $274 million for the third quarter of 2008. Diluted net earnings per share for the third quarter of 2009 were $0.57, representing a 13.6% decrease compared to $0.66 for the third quarter of 2008.