3rd UPDATE: Nobel Biocare 3Q Net Up On Gains; Outlook Murky
04 Novembre 2009 - 1:54PM
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.
Investors welcomed the company's results, despite its muted
outlook, and at 1150 GMT shares in Nobel Biocare traded CHF2.96
higher, or up 10.3% at CHF31.84, in a slightly firmer Swiss
market.
"The company's profitability continued to be strong, even
including restructuring charges in the third quarter, which is
usually the seasonally weakest," said Sal. Oppenheim analyst
Stephan Vollert, who rates the stock at buy.
Not all analysts were pleased by the result, however.
"Given the outlook for unemployment figures it's possible that
the market in Europe may fall again," Sal. Oppenheim analyst
Stephan Vollert, who rates Nobel Biocare at neutral, said.
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.
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.
In 2009, Nobel Biocare plans to sell 500 of those new scanners
and CFO Dirk Kirsten said the company is on track with the
shipments.
Turning to acquisitions, Scala said Nobel is currently looking
at a number of targets. The firm has roughly EUR200 million in cash
for acquisitions, he said.
"But right now we don't have any plans to tap our financial
resources," CFO Kirsten said.
Nobel Biocare shares gained 35% year-to-date, as its markets
stabilized after having deteriorated as patients deferred big
ticket dentistry treatments.
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%.
Company Web site: http://www.nobelbiocare.com
-By Katharina Bart, Dow Jones Newswires; +41 43 443 80 43;
katharina.bart@dowjones.com; julia.mengewein@dowjones.com
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