COVID-19 had ‘significant negative impact’ on first-quarter operating results for Stryker
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The global response to the COVID-19 pandemic, including the postponement of elective surgeries and social restrictions, has had a “significant negative impact” on first-quarter financial results for Stryker, according to a press release from the company.
The company reported an initial growth in unit volume to begin 2020, which was followed by a swift decline in March – shortly after the novel coronavirus reportedly reached the United States.
The press release reported the following first-quarter results for the company:
- reported net sales increased 2% to $3.6 billion;
- organic net sales increased 2.4%;
- reported operating income margin of 17.7%;
- adjusted operating income margin contracted 110 basis points to 24%;
- reported earnings per diluted share (EPS) increased 19.3% to $1.30; and
- adjusted EPS decreased 2.1% to $1.84
Stryker chair and CEO Kevin Lobo acknowledged the adverse effects of the COVID-19 pandemic on the company’s operations for the period.
“Our first-quarter organic sales growth of 2.4% reflects strong momentum through much of the quarter before experiencing a significant negative impact from the COVID-19 pandemic,” Lobo said in the release. He added, “While the fluidity of the current environment makes it difficult to predict our financial performance for the remainder of 2020, given the strength of our balance sheet and cost containment efforts underway, we believe we are well positioned to manage through this unprecedented situation. And as patients who have deferred surgical procedures begin to return over the coming weeks and months, we will work with our customers to help meet the expected demand.”
According to the release, the company will not be releasing a second-quarter or full-year organic sales guidance for the remainder of 2020.