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Stryker Swings to 2Q Loss as Covid-19 Delays Medical Procedures

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)

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