Stryker reported the COVID-19 pandemic has had a significant negative impact on its operations and financials this year, which started out strong.
Five things to know:
1. Stryker reported first quarter net sales were up 2 percent to $3.6 billion. Organic net sales were up 2.4 percent, driven by strong momentum before the pandemic hit.
2. Orthopedic sales dropped in the first quarter by 2.1 percent, hitting $1.2 billion. Orthopedic surgeries across the U.S. and around the world were canceled or postponed during the quarter due to the pandemic.
3. Stryker's medsurg net sales increased 6.2 percent in the quarter to $1.6 billion, and neurotechnology and spine sales were up 0.7 percent to $700 million.
4. The reported net earnings were up 19.7 percent in the quarter to $493 million, but the company reported the pandemic negatively impacted earnings for the first and second quarters. There was an increase in unit volume in the first quarter, which contributed to the boosted earnings, but most of the company saw dramatic declines in March.
5. Stryker did not provide financial guidance for 2020 due to the pandemic.
"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," said Chairman and CEO Kevin Lobo. "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."