UPDATE: Straumann 3Q Sales, 2009 Outlook Below Views
October 29 2009 - 3:48AM
Dow Jones News
Swiss dental implants maker Straumann Holding AG (STMN.EB)
Thursday reported a slightly steeper-than-expected 4.6% drop in
third-quarter sales and gave a lower-than-expected outlook for
full-year sales.
Third-quarter sales dropped to 168.2 million Swiss francs
($164.9 million), from CHF176.40 million a year earlier. Analysts
had forecast sales of CHF169.45 million.
Straumann for the first time revealed a precise sales outlook
for this year--it expects sales of between CHF730 million and
CHF740 million, down between 5% and 6.3% from 2008, and an
operating margin between 22% and 24%.
Straumann said it expects the dental implants market to fall in
a mid-single digit percentage range in 2009 while its own sales
should decline between 1% and 2% in local currencies.
"The figures are below estimates and the sales guidance is
around 2.5% of what the market had expected," said Christoph
Gubler, analyst at Swiss private bank Vontobel. "However, the
guided EBIT margin is a tad above what analysts had called for, so
the company seems to have its costs under control," he added.
Gubler, who rates Straumann at hold, added that Straumann is still
doing better than some of its rivals.
Earlier this month, U.S.-based rivals Zimmer Holdings Inc. (ZMH)
and Biomet Inc. (BMET) reported a 5% and 6% respective on-year
decline in third-quarter sales in their dental implant
divisions.
Analyst Sibylle Bischofberger of Zuercher Kantonalbank expects
the shares to react negatively to the news. "While we see a
stabilization in the market, there's no recovery in sight.
Straumann is still doing good, but cannot evade the overall
weakness," the analyst, who rates Straumann at marketweight,
added.
Year-to-date, Straumann's shares have gained 45%, compared with
rival Nobel Biocare Holding AG (NOBN.VX), which gained 35% in the
same period. Nobel Biocare will release third-quarter earnings Nov.
4.
-By Julia Mengewein, Dow Jones Newswires; +41 43 443 80 45;
julia.mengewein@dowjones.com