(Reuters) — Stryker (NYSE:SYK) said yesterday that it expects the strong U.S. dollar to have a bigger negative impact on its 2015 earnings than it previously forecast, shaving about 20¢ from its per-share profit.
The maker of artificial hip and knee joints previously forecast a currency impact of 10¢ to 12¢ on its 2015 earnings.
U.S. manufacturers such as Stryker that sell products overseas are hurt by a rising dollar when they exchange revenue earned abroad back into dollars. The dollar has benefited from more upbeat U.S. economic prospects compared with the rest of the world and is trading near a 9-year high against the euro.
Kalamazoo, Michigan-based Stryker also forecast adjusted 4th-quarter earnings of $1.43 to $1.45 per share, with net sales growing 6.1% to $2.6 billion. Fourth-quarter sales rose 12.1% in the company’s medical and surgical products business and 1.7% in orthopedics.
Analysts on average were expecting 4th-quarter earnings of $1.46 per share on revenue of $2.63 billion, according to Thomson Reuters I/B/E/S.
Stryker shares were down 1.3% to $93.00 apiece in pre-market trading today.
