UPDATE 3-Straumann FY lags forecast, cautious on outlook
* Misses forecast for 152 mln francs in Reuters poll
* Sees flat or low-single-digit growth in dental implant mkt
* Shares down 6 pct, underperforming flat sector index
(Adds CEO comments, analyst, share price)
By Katie Reid
ZURICH, Feb 16.010 (Reuters) - Swiss dental implant maker Straumann Holding AG (STMN.S) said full-year profits lagged forecasts and it was wary on 2010 after more clients opted to shelve non-urgent mouthcare, further weighing on the sector.
Net profit dropped 19 percent on a like-for-like basis to 146.4 million Swiss francs ($136.1 million), trailing a forecast for 152 million in a Reuters poll after consumers struggled to get credit for dental treatments. [ID:nLDE6181VZ]
The world's second largest maker of dental implants said the market was likely to be flat or grow at a low-single-digit pace in 2010, hitting a more cautious tone than analysts who had predicted the sector would grow in the mid-digit range.
Straumann's comments were also likely to prompt brokers to lower their estimates for the group this year, analysts said.
At 1044 GMT, shares in the group were trading almost 6 percent lower at 250.25 Swiss francs, underperforming a near flat DJ Stoxx European healthcare index .SXDP and a near 2 percent drop in rival Nobel Biocare (NOBN.VX).
Straumann, which controls about 19 percent of the dental implant market, expects to see the market returning to high-single-digit growth next year and is eyeing double-digit growth in 2012, Group Chief Executive Gilbert Achermann said.
The group is aiming this year for sales and an operating profit margin at 2009's levels, as it seeks to gain market share.
DENTAL IMPLANT MARKET LOSES BITE
Straumann's update comes days after Nobel Biocare cautioned visibility in the market remained low and markets such as the United States and Spain were still grappling with soft demand. [ID:nLDE61821T]
Demand for dental implants eroded during the crisis as consumers scaled back on expensive treatments in the same way that many patients have also decided against going for elective procedures that require out-of-pocket payments.
Some analysts said the dental implant market was rather unappealing at the moment given that Straumann and Nobel Biocare are already trading at a premium to other medtech companies like Synthes (SYST.VX) and Zimmer (ZMH.N).
"Given the sluggish business momentum, very limited visibility and high relative valuation, we still believe there are more attractive companies in the European healthcare universe," Credit Suisse analyst Christoph Gretler said.
Straumann has held up better during the downturn than Nobel Biocare which is more exposed to the United States, but some analysts say Nobel's presence there means it is better placed to benefit from a recovery as the U.S. market is likely to pick up faster than other markets this year.
Sales at Straumann slipped 5 percent to 736.4 million Swiss francs in 2009, while it posted an operating margin of 22.5 percent. (Additional reporting by Oliver Hirt; Editing by Hans Peters and Simon Jessop) ($1=1.076 Swiss Franc)
Full-year net profit 146.4 mln Swiss francs
* Sees flat or low-single-digit growth in dental implant mkt
* Shares down 6 pct, underperforming flat sector index
(Adds CEO comments, analyst, share price)
By Katie Reid
ZURICH, Feb 16.010 (Reuters) - Swiss dental implant maker Straumann Holding AG (STMN.S) said full-year profits lagged forecasts and it was wary on 2010 after more clients opted to shelve non-urgent mouthcare, further weighing on the sector.
Net profit dropped 19 percent on a like-for-like basis to 146.4 million Swiss francs ($136.1 million), trailing a forecast for 152 million in a Reuters poll after consumers struggled to get credit for dental treatments. [ID:nLDE6181VZ]
The world's second largest maker of dental implants said the market was likely to be flat or grow at a low-single-digit pace in 2010, hitting a more cautious tone than analysts who had predicted the sector would grow in the mid-digit range.
Straumann's comments were also likely to prompt brokers to lower their estimates for the group this year, analysts said.
At 1044 GMT, shares in the group were trading almost 6 percent lower at 250.25 Swiss francs, underperforming a near flat DJ Stoxx European healthcare index .SXDP and a near 2 percent drop in rival Nobel Biocare (NOBN.VX).
Straumann, which controls about 19 percent of the dental implant market, expects to see the market returning to high-single-digit growth next year and is eyeing double-digit growth in 2012, Group Chief Executive Gilbert Achermann said.
The group is aiming this year for sales and an operating profit margin at 2009's levels, as it seeks to gain market share.
DENTAL IMPLANT MARKET LOSES BITE
Straumann's update comes days after Nobel Biocare cautioned visibility in the market remained low and markets such as the United States and Spain were still grappling with soft demand. [ID:nLDE61821T]
Demand for dental implants eroded during the crisis as consumers scaled back on expensive treatments in the same way that many patients have also decided against going for elective procedures that require out-of-pocket payments.
Some analysts said the dental implant market was rather unappealing at the moment given that Straumann and Nobel Biocare are already trading at a premium to other medtech companies like Synthes (SYST.VX) and Zimmer (ZMH.N).
"Given the sluggish business momentum, very limited visibility and high relative valuation, we still believe there are more attractive companies in the European healthcare universe," Credit Suisse analyst Christoph Gretler said.
Straumann has held up better during the downturn than Nobel Biocare which is more exposed to the United States, but some analysts say Nobel's presence there means it is better placed to benefit from a recovery as the U.S. market is likely to pick up faster than other markets this year.
Sales at Straumann slipped 5 percent to 736.4 million Swiss francs in 2009, while it posted an operating margin of 22.5 percent. (Additional reporting by Oliver Hirt; Editing by Hans Peters and Simon Jessop) ($1=1.076 Swiss Franc)
Full-year net profit 146.4 mln Swiss francs
posted by Zo Heri at 5:19 PM
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