The importance of properly testing metal products and components is evident in the steep drop in profits that medical device maker Stryker Corp. reported, which the company said was directly caused by product recall charges, Dow Jones Newswires reports.
According to the news source, the orthopedic product maker, which has been struggling anyway as the down economy has prompted many patients to opt out of or delay surgery, had difficulty recovering from recalls in the first quarter. After several devices were called into question in addition to others that had to be recalled, profits fell further.
The company’s latest quarterly report showed Stryker’s profits were down 13 percent to $304 million, compared with $350 million in the same period last year. The company’s hip products division, which made up the bulk of the recalls, saw sales drop 0.8 percent, while knee product sales dropped 1 percent.
According to Michigan Live, the biggest impact on earnings was the recall of the Neptune surgical waste removal system, which saw sales fall by $20 million. The company said the slump in sales will likely continue in the next quarter, when they could fall by as much as another $20 million.
Such steep profit drops can be prevented through advanced product testing procedures.