Stryker Corporation reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2013. For the quarter, the company has posted net sales were $2,468 million against $2,337 million a year ago. Operating income was $430 million against $370 million a year ago. EBIT was $431 million against $358 million a year ago. Net earnings were $386 million or $1.02 diluted per share against $270 million or $0.71 diluted per share a year ago. Adjusted diluted net earnings per share of $1.23 against $1.14 last year. Net cash provided by operating activities was $672 million against $596 million a year ago. Purchases of property, plant and equipment were $56 million against $49 million a year ago. Organic sales growth, which excludes currency and acquisitions, was solid again this quarter, increasing roughly 6%. With the same number of selling days in the quarter, this represents strong growth with all 3 segments, Reconstructive, MedSurg and Neurotechnology and Spine, delivering year-over-year gains. Growth was also balanced geographically, with the U.S. up 7% and international increasing 8% in constant currency.

For the year, the company has posted net sales were $9,021 million against $8,657 million a year ago. Operating income was $1,256 million against $1,741 million a year ago. EBIT was $1,212 million against $1,705 million a year ago. Net earnings were $1,006 million or $2.63 diluted per share against $1,298 million or $3.39 diluted per share a year ago. Adjusted diluted net earnings per share were $4.23 against $4.07 last year. Net cash provided by operating activities was $1,886 million against $1,657 million a year ago. Purchase of property, plant and equipment were $195 million compared to $210 million a year ago. FX negatively impacted the full year results by approximately $0.20 per share, and the med-tech tax had a negative impact of approximately $0.13 per share. 2013 cash flow benefited from improved operational performance and lower tax payments.

The company provided earnings guidance for the first quarter, first half and full year of 2014. For the year, organic sales growth in 2014 is expected to be in the range of 4.5% to 6.0%. If foreign currency exchange rates hold near current levels, the company expects net sales in the first quarter and full year of 2014 to be negatively impacted by less than 1.0%. Beginning in 2014 will also exclude amortization of intangible assets from adjusted net earnings per share which expect to be in the range of $4.75 to $4.90 using this new measure. The company expects adjusted effective tax rate will run closer to 23% with a higher rate in the first half. Capital expenditures are expected to run closer to $250 million to $300 million in 2014, as some capital spending is carrying over into 2014 and the company continues to invest in operations and IT infrastructure. The company's expectations in general are for modest improvement on the gross margin rate.

The company expects 45% of full year adjusted earnings per share to be achieved in the first half of 2014, with the first quarter facing the steepest headwinds. In the first quarter, the company will be negatively impacted by a greater negative FX impact based on current rate assumptions.