UPDATE 2-Straumann sales slip, sees no quick recovery
* Sales down 1 pct when stripping out currency effects
* Confirms guidance, sees FY sales at 730-740 mln Sfr
* Cautious outlook disappoints, shares fall 4 pct
(Rewrites throughout, adds CEO comments, analyst, share price)
By Sven Egenter
ZURICH, Oct 29, 2009 (Reuters) - Sales at Straumann (STMN.S), the world's second-largest producer of dental implants, fell a little more than expected in the third quarter, and it doesn't expect consumers to spend much more on their teeth until 2011.
The Swiss company, which has narrowed the gap on market leader Nobel Biocare (NOBN.VX) during the recession, has suffered less than rivals thanks to its less costly product mix, and it repeated its goal to win more market share.
But Straumann shares, which have risen 45 percent so far this year, were down 4.6 percent at 256 Swiss francs by 0912 GMT, while shares in Nobel, which reports results on Nov. 4, had fallen 2.5 percent.
"The results clearly show how difficult the dental implant market is and that Straumann cannot fully decouple," ZKB analyst Sibylle Bischofberger said.
Straumann said the market for implant, restorative and regenerative dentistry would fall by a mid-single digit percentage figure in 2009, and its chief executive did not expect it to return to pre-crisis growth rates soon.
"We think it's too early to talk about a significant recovery," Gilbert Achermann told Reuters. "We are still very cautious with regard to future developments."
Achermann said the market might grow slightly in 2010 and growth rates could reach high-single digit or low-double digit rates in 2011.
FALLING SALES
Straumann continued to outperform competitors such as U.S. companies Biomet and Zimmer (ZMH.N) in the third quarter with a 1 percent dip in sales when adjusted for currency swings.
Straumann's net revenue fell 5 percent compared with the third-quarter 2008 to 168 million Swiss francs ($164 million), the group said, taking its nine-month sales to 552 million, slightly below analysts' average forecast of 555 million in a Reuters poll.
Straumann gave the first quantitative guidance for 2009, saying full-year net revenue would be 730-740 million francs, below the average forecast in the poll of 751 million, and the operating (EBIT) margin would be around 22-24 percent.
Straumann shares trade at 24.7 times 2010 forecast earnings, a 22 percent premium over Nobel. ($1=1.025 Swiss Franc)
Dental implant maker's sales Q3 fall 5 pct to 168 mln Sfr
* Confirms guidance, sees FY sales at 730-740 mln Sfr
* Cautious outlook disappoints, shares fall 4 pct
(Rewrites throughout, adds CEO comments, analyst, share price)
By Sven Egenter
ZURICH, Oct 29, 2009 (Reuters) - Sales at Straumann (STMN.S), the world's second-largest producer of dental implants, fell a little more than expected in the third quarter, and it doesn't expect consumers to spend much more on their teeth until 2011.
The Swiss company, which has narrowed the gap on market leader Nobel Biocare (NOBN.VX) during the recession, has suffered less than rivals thanks to its less costly product mix, and it repeated its goal to win more market share.
But Straumann shares, which have risen 45 percent so far this year, were down 4.6 percent at 256 Swiss francs by 0912 GMT, while shares in Nobel, which reports results on Nov. 4, had fallen 2.5 percent.
"The results clearly show how difficult the dental implant market is and that Straumann cannot fully decouple," ZKB analyst Sibylle Bischofberger said.
Straumann said the market for implant, restorative and regenerative dentistry would fall by a mid-single digit percentage figure in 2009, and its chief executive did not expect it to return to pre-crisis growth rates soon.
"We think it's too early to talk about a significant recovery," Gilbert Achermann told Reuters. "We are still very cautious with regard to future developments."
Achermann said the market might grow slightly in 2010 and growth rates could reach high-single digit or low-double digit rates in 2011.
FALLING SALES
Straumann continued to outperform competitors such as U.S. companies Biomet and Zimmer (ZMH.N) in the third quarter with a 1 percent dip in sales when adjusted for currency swings.
Straumann's net revenue fell 5 percent compared with the third-quarter 2008 to 168 million Swiss francs ($164 million), the group said, taking its nine-month sales to 552 million, slightly below analysts' average forecast of 555 million in a Reuters poll.
Straumann gave the first quantitative guidance for 2009, saying full-year net revenue would be 730-740 million francs, below the average forecast in the poll of 751 million, and the operating (EBIT) margin would be around 22-24 percent.
Straumann shares trade at 24.7 times 2010 forecast earnings, a 22 percent premium over Nobel. ($1=1.025 Swiss Franc)
Dental implant maker's sales Q3 fall 5 pct to 168 mln Sfr
posted by Zo Heri at 4:11 PM
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