In a press release yesterday, Stryker Corp. reported a 71% decrease in profits in Q3 due to costs associated with the recalls of their Rejuvenate/ABG II hip devices and a surgical waste management system. The company’s gross sales totaled $2.2 billion for Q3, showing a growth of 4.8%. Profits, on the other hand, totaled just $103 million – less than one third of 2012 Q3 profits.
The company admitted that hip and waste management recalls cost the company $313 million in Q3 alone and $700 million total so far.
Stryker president and CEO Kevin A. Lobo released an optimistic statement that focused on the sales growth:
“We are pleased with our strong third quarter sales growth of 6.8% in constant currency, and 6.1% excluding currency and acquisitions…We believe these results not only represent gradual improvement in our key markets but also underscore our commitment to delivering above market growth. We are on track to meet our full year adjusted EPS guidance of $4.20 to $4.26.”
However, the press release gave no indication as to whether the company could see similar hits next quarter.
Back in July, Mass Device reported that Stryker’s Q2 profits plunged nearly 35% due to costs related to the recall of the hip devices.