Portage, Michigan, July 30, 2024 (GLOBE NEWSWIRE) -- Stryker (NYSE:SYK) reported operating results for the second quarter of 2024: Second Quarter Results Reported net sales increased 8.5% to $5.4 billion Organic net sales increased 9.0% Reported operating income margin of 19.4% Adjusted operating income margin(1) increased 30 bps to 24.6% Reported EPS increased 10.9% to $2.14 Adjusted EPS(1) increased 10.6% to $2.81   Second Quarter Net Sales Growth Overview   Reported   Foreign Currency Exchange   Constant Currency   Acquisitions / Divestitures   Organic MedSurg and Neurotechnology         9.0         %           (0.8)        %           9.8         %           0.1         %           9.7         % Orthopaedics and Spine         7.9                     (1.0)                      8.9                     0.9                     8.0           Total         8.5         %           (0.9)        %           9.4         %           0.4         %           9.0         % "We delivered another quarter of strong organic sales growth," said Kevin A. Lobo, Chair and CEO. "We remain committed to our margin expansion goals and are excited about our product and M&A pipelines." Sales Analysis Consolidated net sales of $5.4 billion increased 8.5% in the quarter and 9.4% in constant currency. Organic net sales increased 9.0% in the quarter including 7.9% from increased unit volume and 1.1% from higher prices. MedSurg and Neurotechnology net sales of $3.1 billion increased 9.0% in the quarter and 9.8% in constant currency. Organic net sales increased 9.7% in the quarter including 7.6% from increased unit volume and 2.1% from higher prices. Orthopaedics and Spine net sales of $2.3 billion increased 7.9% in the quarter and 8.9% in constant currency. Organic net sales increased 8.0% in the quarter including 8.4% from increased unit volume partially offset by 0.4% from lower prices. Earnings Analysis Reported net earnings of $825 million increased 11.8% in the quarter. Reported net earnings per diluted share of $2.14 increased 10.9% in the quarter. Reported gross profit margin and reported operating income margin were 63.0% and 19.4% in the quarter. Reported net earnings include certain items, such as charges for acquisition and integration-related activities, the amortization of purchased intangible assets, structural optimization and other special charges (including asset write-offs and impairments), costs to comply with certain medical device regulations, recall-related matters, regulatory and legal matters and tax matters. Excluding the aforementioned items, adjusted gross profit margin(1) was 64.2% in the quarter, and adjusted operating income margin(1) was 24.6% in the quarter. Adjusted net earnings(1) of $1,085 million increased 11.2% in the quarter. Adjusted net earnings per diluted share(1) of $2.81 increased 10.6% in the quarter. 2024 Outlook Based on our year-to-date performance and our positive outlook related to sustained procedural volumes and a healthy demand for our capital products, we now expect full year 2024 organic net sales growth(2) to be in the range of 9.0% to 10.0% with a favorable pricing impact of approximately 0.5%. If foreign exchange rates hold near current levels, we anticipate a moderately unfavorable impact on full year net sales and now expect adjusted net earnings per diluted share(2) will be negatively impacted in the range of $0.10 to $0.15. This is reflected in our guidance. Given our sales momentum, we now expect adjusted net earnings per diluted share(2) to be in the range of $11.90 to $12.10. (1) A reconciliation of the non-GAAP financial measures: adjusted gross profit margin, adjusted operating income and adjusted operating income margin, adjusted net earnings and adjusted net earnings per diluted share, to the most directly comparable GAAP measures: gross profit margin, operating income and operating income margin, net earnings and net earnings per diluted share, and other important information accompanies this press release. (2) We are unable to present a quantitative reconciliation of our expected net sales growth to expected organic net sales growth as we are unable to predict with reasonable certainty and without unreasonable effort the impact and timing of acquisitions and divestitures and the impact of foreign currency exchange rates. We are unable to present a quantitative reconciliation of our expected net earnings per diluted share to expected adjusted net earnings per diluted share as we are unable to predict with reasonable certainty and without unreasonable effort the impact and timing of structural optimization and other special charges, acquisition-related expenses and the outcome of certain regulatory, legal and tax matters. The financial impact of these items is uncertain and is dependent on various factors, including timing, and could be material to our Consolidated Statements of Earnings. Conference Call on Tuesday, July 30, 2024 As previously announced, we will host a conference call on Tuesday, July 30, 2024 at 4:30 p.m., Eastern Time, to discuss our operating results for the quarter ended June 30, 2024 and provide an operational update. Please register for this conference call at: https://www.veracast.com/webcasts/stryker/events/SYK2Q24.cfm. After registering, a confirmation will be sent via email, including dial-in details and unique conference call access codes required for call entry. Registration is open throughout the live call. To ensure you are connected prior to the beginning of the call, we suggest registering a minimum of 15 minutes before the start of the call. A simultaneous webcast of the call will be accessible via the Investor Relations page of our website at www.stryker.com. For those not planning to ask a question of management, we recommend listening via the webcast. Please allow 15 minutes to register, download and install any necessary software. Following the conference call, a replay will be available on our website up to one year from the time of the earnings call. Caution Concerning Forward-Looking Statements This press release contains information that includes or is based on forward-looking statements within the meaning of the federal securities law that are subject to various risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in such statements. Such factors include, but are not limited to: weakening of economic conditions, or the anticipation thereof, that could adversely affect the level of demand for our products; geopolitical risks, including from international conflicts and elections in the United States and other countries, which could, among other things, lead to increased market volatility; pricing pressures generally, including cost-containment measures that could adversely affect the price of or demand for our products; changes in foreign currency exchange markets; legislative and regulatory actions; unanticipated issues arising in connection with clinical studies and otherwise that affect approval of new products by the United States Food and Drug Administration and foreign regulatory agencies; inflationary pressures; increased interest rates or interest rate volatility; supply chain disruptions; changes in labor markets; changes in reimbursement levels from third-party payors; a significant increase in product liability claims; the ultimate total cost with respect to recall-related and other regulatory and quality matters; the impact of investigative and legal proceedings and compliance risks; resolution of tax audits; changes in tax laws and regulations; the impact of legislation to reform the healthcare system in the United States or other countries; costs to comply with medical device regulations; changes in financial markets; changes in our credit ratings; changes in the competitive environment; our ability to integrate and realize the anticipated benefits of acquisitions in full or at all or within the expected timeframes; our ability to realize anticipated cost savings; potential negative impacts resulting from climate change or other environmental, social and governance and sustainability related matters; the impact on our operations and financial results of any public health emergency and any related policies and actions by governments or other third parties; and breaches or failures of our or our vendors' or customers' information technology systems or products, including by cyber-attack, data leakage, unauthorized access or theft. Additional information concerning these and other factors is contained in our filings with the United States Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We disclaim any intention or obligation to publicly update or revise any forward-looking statement to reflect any change in our expectations or in events, conditions or circumstances on which those expectations may be based, or that affect the likelihood that actual results will differ from those contained in the forward-looking statements. Stryker is a global leader in medical technologies and, together with our customers, we are driven to make healthcare better. We offer innovative products and services in MedSurg, Neurotechnology, Orthopaedics and Spine that help improve patient and healthcare outcomes. Alongside our customers around the world, we impact more than 150 million patients annually. More information is available at www.stryker.com. For investor inquiries please contact: Jason Beach, Vice President, Finance and Investor Relations at 269-385-2600 or For media inquiries please contact: Yin Becker, Vice President, Chief Corporate Affairs Officer at 269-385-2600 or STRYKER CORPORATION For the Three and Six Months June 30 (Unaudited - Millions of Dollars, Except Per Share Amounts)                         CONSOLIDATED STATEMENTS OF EARNINGS                   Three Months   Six Months     2024              2023             % Change     2024               2023             % Change Net sales $         5,422             $         4,996                     8.5         %   $         10,665             $         9,774                     9.1         % Cost of sales           2,006                       1,815                     10.5                       3,916                       3,577                     9.5           Gross profit $         3,416             $         3,181                     7.4         %   $         6,749             $         6,197                     8.9         % % of sales           63.0         %             63.7         %                 63.3         %             63.4         %     Research, development and engineering expenses           363                       346                     4.9                       731                       685                     6.7           Selling, general and administrative expenses           1,847                       1,709                     8.1                       3,687                       3,490                     5.6           Amortization of intangible assets           155                       161                     (3.7)                      308                       322                     (4.3)          Total operating expenses $         2,365             $         2,216                     6.7         %   $         4,726             $         4,497                     5.1         % Operating income $         1,051             $         965                     8.9         %   $         2,023             $         1,700                     19.0         % % of sales           19.4         %             19.3         %                 19.0         %             17.4         %     Other income (expense), net           (53)                       (66)                   (19.7)                      (102)                      (122)            (16.4)          Earnings before income taxes $         998             $         899                     11.0         %   $         1,921             $         1,578                     21.7         % Income taxes           173                       161                     7.5                       308                       248                     24.2         % Net earnings $         825             $         738                     11.8         %   $         1,613             $         1,330                     21.3         % Net earnings per share of common stock:                       Basic $         2.17             $         1.95                     11.3         %   $         4.24             $         3.51                     20.8         % Diluted $         2.14             $         1.93                     10.9         %   $         4.19             $         3.47                     20.7         % Weighted-average shares outstanding (in millions):                       Basic   381.0       379.7           380.7       379.4       Diluted   385.4       383.9           385.2       383.6       CONDENSED CONSOLIDATED BALANCE SHEETS                   June 30          December 31     2024              2023          Assets       Cash and cash equivalents $         1,874           $         2,971         Marketable securities           83                     82         Accounts receivable, net           3,622                     3,765         Inventories           5,044                     4,843         Prepaid expenses and other current assets           1,022                     857         Total current assets $         11,645           $         12,518         Property, plant and equipment, net           3,318                     3,215         Goodwill and other intangibles, net           19,771                     19,836         Noncurrent deferred income tax assets           1,606                     1,670         Other noncurrent assets           2,790                     2,673         Total assets $         39,130           $         39,912         Liabilities and shareholders' equity       Current liabilities $         6,926           $         7,921         Long-term debt, excluding current maturities           10,127                     10,901         Income taxes           350                     567         Other noncurrent liabilities           1,965                     1,930         Shareholders' equity           19,762                     18,593         Total liabilities and shareholders' equity $         39,130           $         39,912         CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS   Six Months     2024                2023           Operating activities       Net earnings $         1,613             $         1,330           Depreciation           210                       194           Amortization of intangible assets           308                       322           Changes in operating assets, liabilities, income taxes payable and other, net           (1,294)                      (713)          Net cash provided by operating activities $         837             $         1,133           Investing activities       Acquisitions, net of cash acquired $         (334)            $         (390)         Purchases of property, plant and equipment           (319)                      (282)         Other investing, net           128                       7          Net cash used in investing activities $         (525)            $         (665)         Financing activities       Borrowings (payments) of debt, net $         (600)            $         (205)         Payments of dividends           (609)                      (569)         Other financing, net           (175)                      (112)         Net cash provided by (used in) financing activities $         (1,384)           $         (886)          Effect of exchange rate changes on cash and cash equivalents           (25)                     (25)         Change in cash and cash equivalents $         (1,097)           $         (443)         STRYKER CORPORATION For the Three and Six Months June 30 (Unaudited - Millions of Dollars) SALES GROWTH ANALYSIS   Three Months   Six Months           Percentage Change           Percentage Change     2024             2023           As Reported ConstantCurrency     2024             2023           As Reported ConstantCurrency Geographic:                           United States $         4,047           $         3,711                   9.1         %         9.1         %   $         7,961           $         7,223                   10.2         %         10.2         % International           1,375                     1,285                   7.0                   10.5                       2,704                     2,551                   6.0                   8.7           Total $         5,422           $         4,996                   8.5         %         9.4         %   $         10,665           $         9,774                   9.1         %         9.8         % Segment:                           MedSurg and Neurotechnology $         3,117           $         2,860                   9.0         %         9.8         %   $         6,116           $         5,550                   10.2         %         10.8         % Orthopaedics and Spine           2,305                     2,136                   7.9                   8.9                       4,549                     4,224                   7.7                   8.5           Total $         5,422           $         4,996                   8.5         %         9.4         %   $         10,665           $         9,774                   9.1         %         9.8         % SUPPLEMENTAL SALES GROWTH ANALYSIS   Three Months             United States   International       Percentage Change     2024            2023           As Reported Constant Currency   As Reported   As Reported Constant Currency MedSurg and Neurotechnology:                       Instruments $         698           $         622                   12.3         %         12.9