UPDATE: Straumann 1st Half Net Beats Views, Announces Management Rushuffle
August 11 2009 - 2:27AM
Dow Jones News
Dental implants maker Straumann Holding AG (STMN.EB) Tuesday
reported a better-than-expected 16% drop in second-quarter net
profit due to good cost management and lower taxes, and said it
would make several changes to its management board in March next
year.
Straumann said its current Chief Executive Gilbert Achermann
will become Chairman of the Board, subject to shareholder approval,
succeeding Rudolf Maag who will retire at the annual general
meeting in March 2010.
Current Chief Financial Officer Beat Spalinger will then take
the position of CEO.
The move is to "ensure continuity and sustainability" in what
the company calls "uncertain" times and amid weak customer
demand.
The Basel, Switzerland-based company said net profit for the
second half came in at CHF84.6 million ($78.3 million), after
CHF100.5 million a year ago, and beating analysts estimates of
CHF74.62 million.
Lower tax payments than in the prior-year period and cost
measures somewhat cushioned the impact of weak demand, low capacity
utilization and unfavorable currency movements on profitability in
the first half of 2009, Straumann said.
For 2009, the company said the dental market should shrink to
between 5% to 10%, but still expects to outperform the market this
year in terms of sales development.
Straumann also still expects an operating margin of more than
20% for 2009, "depending on currency developments."
Sales in the first half fell 6.9% to CHF384.1 million, coming in
below analyst estimates of CHF393 million.
Year-to-date, Straumann shares have gained 27% as investors are
hoping for a recovery of the market for dental implants. They
closed Monday at CHF236.
This compares to a 29% rise in shares of Zurich-based rival
Nobel Biocare Holding AG (NOBN.VX) which will report second-quarter
figures Wednesday.
Straumann and Nobel Biocare rivals Zimmer Holdings Inc. (ZMH)
and Biomet Inc. (BMET) have already reported one of their weakest
quarters, prompting analysts to take a more cautious stance on the
sector as customers remain hesitant to undergo big-ticket
treatments, such as bridges and implants, during recession.
Company Web Site: www.straumann.com; www.nobel-biocare.com
-By Julia Mengewein, Dow Jones Newswires; +41 43 443 80 45;
julia.mengewein@dowjones.com