Stryker Recalls Hurt First Quarter Earnings
Stryker Corp. reported sharply lower quarterly earnings on April 23, 2014. Stryker, manufacturer of medical implants, devices and equipment announced sales of $2.3 billion for its first quarter of 2014, a 5 percent increase from last year. According to the company, net income declined to $7 million, or 18 cents per share; last year, the company reported $304 million, or 79 cents per share.
Stryker maintained that the decline in earnings was attributed to regulatory and legal matters, restructuring, acquisitions made during the last year, product recalls and other factors. With the exception of the charges, Stryker’s adjusted income was $404 million, off only 3 percent from its first quarter in 2013.
Stryker also reiterated that it expects to level out over the course of the year and anticipates sales growth between 4.5 percent and 6 percent in 2014 and estimates that its annual net income will increase $4.75 per share to $4.90 per share.
One of the biggest causes for the 77 percent decline in sales may be attributed to several Stryker recalls that are in place. In July 2012, the manufacturer issued Stryker recalls for its Rejuvenate and ABG II hip replacement devices after reviewing evidence that suggested that the implants could fret, corrode or cause serious injuries to patients.
As a result of the Stryker recalls, patients throughout the U.S. who have been fitted with the devices are filing lawsuits against the manufacturer, alleging that the devices caused pain, inflammation and metal poisoning, among other complications. Additionally, many patients underwent revision surgeries to correct the problems allegedly caused by the implants. However, additional procedures are often more complex and may worsen problems as there is less bone with which the surgeon has to work.
Patients who have been fitted with a hip implant named in the Stryker recalls may consider seeking legal counsel to learn more about pursuing a claim for compensation. According to Stryker’s website, patients should request cross sectional imaging and blood testing to determine if they have developed metallosis, or metal toxicity, or if they may be at an increased risk of early device failure.
Stryker Recalls Affect Thousands
Contact the American Injury Attorney Group today if you or a loved one received the Stryker ABG II or Rejuvenate modular-neck hip stems and later suffered from life-threatening complications or adverse side effects. We can provide you with a no-obligation consultation at no cost, and connect you with an affiliated attorney. You may be able to seek damages for lost wages, medical expenses and pain and suffering. The time to file is limited, so call us as soon as you feel you have a claim.