Nobel Biocare still losing market share, stock tumbles
* Q2 profit 19.6 mln euros, misses poll
* Average estimate in Reuters poll was 22 mln euros
* Still losing market share
* Says market may return to growth in 2010
* Shares slump nearly 11 percent
(Adds analyst comment, shares, background)
By Katie Reid
ZURICH, Aug 11 (Reuters) - Struggling Swiss dental implant maker Nobel Biocare (NOBN.VX) will lose more market share this year and may soon surrender top spot as patients hold off on the more complicated treatments offered by the group.
The company's shares tumbled almost 11 percent, close to an 18-month low and standing at 16.85 Swiss francs at 0858 GMT. The stock has already slumped 46 percent this year.
Nobel Biocare has been losing market share for over a year and may be overtaken after quarterly results from Swiss rival Straumann (STMN.S) on Aug. 19.
Nobel Biocare's second-quarter sales edged up 1 percent, reversing a slump in the first quarter, but it is still trailing peers as sales in Spain and the United States remained weak.
"While marginal improvement in top line growth is evident, the reported sales performance and associated market share losses are still very worrying," analysts at Credit Suisse said in a note.
Nobel Biocare's net profit also fell short of expectations, sliding to 19.6 million euros from 28.2 million euros in the year-ago period.
MARKET RECOVERY
The dental implant market could return to growth this year but Chief Executive Domenico Scala cautioned a recovery was likely to be slow.
The group is hoping its restructuring efforts should allow it to return to at least market growth within the next 9-12 months.
There have been signs that the beleaguered market is starting to stabilise, with peers such as Zimmer (ZMH.N) and Biomet recently posting sales rises.
Demand for dental implants fell sharply during the economic crisis and Nobel Biocare was particularly hard hit due to its focus on more costly, larger case treatments and also because of its U.S. exposure.
Most analysts still view the industry's long-term prospects as bright, thanks to ageing populations in Europe and the United States as well as an increased awareness of the cosmetic advantages of implants and veneers.
Nobel Biocare is trading at around 15 times 2011 earnings, at a discount to Straumann at 20.5 times. (Editing by David Cowell)
Wed Aug 11, 2010 5:03am EDT
* Average estimate in Reuters poll was 22 mln euros
* Still losing market share
* Says market may return to growth in 2010
* Shares slump nearly 11 percent
(Adds analyst comment, shares, background)
By Katie Reid
ZURICH, Aug 11 (Reuters) - Struggling Swiss dental implant maker Nobel Biocare (NOBN.VX) will lose more market share this year and may soon surrender top spot as patients hold off on the more complicated treatments offered by the group.
The company's shares tumbled almost 11 percent, close to an 18-month low and standing at 16.85 Swiss francs at 0858 GMT. The stock has already slumped 46 percent this year.
Nobel Biocare has been losing market share for over a year and may be overtaken after quarterly results from Swiss rival Straumann (STMN.S) on Aug. 19.
Nobel Biocare's second-quarter sales edged up 1 percent, reversing a slump in the first quarter, but it is still trailing peers as sales in Spain and the United States remained weak.
"While marginal improvement in top line growth is evident, the reported sales performance and associated market share losses are still very worrying," analysts at Credit Suisse said in a note.
Nobel Biocare's net profit also fell short of expectations, sliding to 19.6 million euros from 28.2 million euros in the year-ago period.
MARKET RECOVERY
The dental implant market could return to growth this year but Chief Executive Domenico Scala cautioned a recovery was likely to be slow.
The group is hoping its restructuring efforts should allow it to return to at least market growth within the next 9-12 months.
There have been signs that the beleaguered market is starting to stabilise, with peers such as Zimmer (ZMH.N) and Biomet recently posting sales rises.
Demand for dental implants fell sharply during the economic crisis and Nobel Biocare was particularly hard hit due to its focus on more costly, larger case treatments and also because of its U.S. exposure.
Most analysts still view the industry's long-term prospects as bright, thanks to ageing populations in Europe and the United States as well as an increased awareness of the cosmetic advantages of implants and veneers.
Nobel Biocare is trading at around 15 times 2011 earnings, at a discount to Straumann at 20.5 times. (Editing by David Cowell)
Wed Aug 11, 2010 5:03am EDT
posted by Zo Heri at 11:49 AM
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