Stryker 2010 Annual Review / The Next Level

Our financial performance in 2010 reflected our preparation and discipline. Our company generated net sales of $7.32 billion, an increase of 8.9% over 2009. This growth continued Stryker’s unbroken streak of year-on-year sales increases, and exemplified our ability to adapt to—and take advantage of—evolving marketplace and economic conditions. Adjusted diluted net earnings per share increased 13% to $3.33 in 2010, exceeding our early projections. But it was our ongoing focus on operational cash flow—which exceeded $1.5 billion for the first time—that fueled our progress this year. The availability of cash enabled us to take a number of important steps to reshape the company, diversify our offerings and enhance our competitive position.

This generation of cash from operations also directly benefitted our shareholders, who saw a 20% increase in dividends paid per share in the year. Our repurchase of 8.3 million shares at a cost of $426 million also strengthens the ownership stake of each of our shareholders.