2nd UPDATE: Nobel Biocare 3Q Net Up On Gains; Outlook Murky
November 04 2009 - 3:25AM
Dow Jones News
Swiss dental implant maker Nobel Biocare Holding AG (NOBN.VX)
Wednesday reported a rise in third-quarter net profit on gains from
investments and saw initial signs of stabilization in demand for
dental implants, but said talk of a full-fledged recovery was
premature.
Nobel, the world's largest maker of dental implants by sales,
again failed to give guidance for 2009, citing low visibility.
Nobel said it sees many markets stabilizing, particularly in
Europe, after an estimated 8% overall market decline in the first
nine months. The company's revenue is highly sensitive to economic
swings because many treatments are elective and can be
postponed.
"Although there are signs of stabilization, it is premature to
talk about a recovery in the marketplace," Nobel Chief Executive
Domenico Scala told journalists on a media call after third-quarter
earnings.
The Zurich-based maker of implants, crowns and bridges said net
profit for the three months ended Sept. 30 more than doubled to
EUR33.6 million, after EUR13.50 million a year earlier, helped by
gains on funding structures and various currency swings. The 10
analysts polled by Dow Jones had called for a net profit of
EUR15.72 million.
Sales fell 5.6% to EUR125.3 million from EUR132.8 million a year
ago, missing analyst forecasts of EUR128 million. Bernstein
Research said Nobel lagged rivals such as Biomet Inc. (BMET),
Zimmer Holdings Inc. (ZMH), and Straumann Holding AG (STMN.EB) in
the quarter.
"This is surprising given Nobel Biocare's recovery to market
growth earlier this year, and the Procera launch that started in
June," Bernstein analyst Lisa Bedell Clive said. Bedell Clive, who
rates Nobel at marketperform with a CHF38 target price, expects
details from Nobel on whether NobelProcera, a new scanner launched
earlier this year, has ramped up more slowly than expected, or
whether Spain is a larger drag on Nobel sales than for rivals.
Scala demurred when asked whether Nobel, which lost market share
to rivals in 2008, could begin winning back share in 2010, or
whether the overall dental implant market would grow next year.
Scala said whether Nobel Biocare can win share depends heavily on
the performance of NobelProcera, a scanner and software system.
Turning to acquisitions, Scala said Nobel is currently looking
at a number of targets, mainly late-stage technology or those early
in marketing phases. The firm has roughly EUR200 million in cash
for acquisitions, he said.
Nobel Biocare shares have gained 35% year-to-date, as its
markets stabilized after having deteriorated as patients deferred
big ticket dentistry treatments. Tuesday, Nobel shares closed at
CHF28.88, giving the company a market capitalization of $3.52
billion.
That compares with a 31% rise at Swiss rival Straumann Holding
AG (STMN.EB) over the same period. Straumann last week reported a
4.6% drop in third-quarter sales and disappointed with its 2009
sales forecast of a drop between 5% and around 6%, while the
Basel-based company's sees an operating margin in the range of 22%
and 24%. Trading in both company's shares resumes at 0800 GMT.
Company Web site: http://www.nobelbiocare.com
-By Katharina Bart, Dow Jones Newswires; +41 43 443 80 43;
katharina.bart@dowjones.com
(Julia Mengewein contributed to this item.)
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