Stryker Swings to 2Q Loss as Covid-19 Delays Medical Procedures
July 30 2020 - 4:53PM
Dow Jones News
By Kimberly Chin
Stryker Corp. swung to a loss in the fiscal second quarter as
the company's sales were dented by the postponement of deferrable
medical procedures amid measures to contain the spread of the
coronavirus.
"While we reported overall decreased unit volume in the quarter,
most of our businesses saw gradual recoveries in the month of June
2020," Stryker said.
Stryker said it wasn't providing guidance at this time. "The
global response to the COVID-19 pandemic has had, and we expect
will continue to have, a significant negative impact on Stryker's
operations and financial results," the company said.
The medical-technology company posted a loss of $83 million, or
22 cents a share, compared with a profit of $480 million, or $1.26
a share, a year earlier. Adjusted profit was 64 cents a share.
Analysts polled by FactSet were expecting adjusted earnings of 56
cents a share.
Stryker recorded $170 million in charges related to asset
impairments, product line and other exit costs on the company's
decision to hold off on certain investments because of
pandemic-related constraints, the company said.
The Kalamazoo, Mich., company cut total operating expenses by
11% from the year earlier to $1.57 billion.
Net sales were $2.76 billion, down from $3.65 billion in the
prior year's second quarter. Analysts were expecting revenue of
$2.59 billion.
Write to Kimberly Chin at kimberly.chin@wsj.com
(END) Dow Jones Newswires
July 30, 2020 16:38 ET (20:38 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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