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Straumann Holding AG (STMN), the world’s biggest maker of dental implants, dropped the most in six months after first-half profit missed analysts’ estimates.
The shares fell as much as 7.5 percent, the most since Feb. 22. First-half net income climbed to 43.8 million Swiss francs ($45.1 million) from 38.5 million francs a year earlier, the Basel, Switzerland-based company said in an e-mailed statement today. That missed the 47.4 million-franc average estimate of 10 analysts surveyed by Bloomberg.
Straumann bought a 49 percent stake in Brazilian dental- implant maker Neodent for 260 million francs in June to reduce reliance on Europe, its biggest market. The Swiss company said it doesn’t expect demand in the crisis-stricken region to improve “in the near term.”
“Our environment has been disappointing and the gradual market improvement that we were expecting has not materialized,” Chief Executive Officer Beat Spalinger said. “Furthermore, the market slowdown has coincided with several cost-intensive strategic initiatives, including our new organizational structure and the addition of sales power in North America.”
Straumann shares were down 6.1 percent at 117 Swiss francs at 9:20 a.m. in Zurich, reducing the company’s market value to 1.83 billion francs.
Martin Brunninger, an analyst with Nomura International Plc, reduced his recommendations on Straumann and its next- biggest rival, Nobel Biocare Holding AG (NOBN), to neutral from buy on Aug. 17, citing a risk that the companies may reduce their forecasts for the year.
Last year’s profit included a 40 million-franc charge to revalue Straumann’s Japanese distributor as demand weakened in the wake of a tsunami.
“With the euro zone in recession, it really affects patients’ willingness to spend money,” Carmen Chan, an analyst with Millennium Research Group in Toronto, said Aug. 10 by phone.
Earnings before interest and taxes rose to 53.3 million francs during the period from 38.9 million francs a year earlier. That compares with the 59.3 million-franc average estimate of 10 analysts surveyed by Bloomberg.
Sales declined to 361.7 million francs from 367.3 million francs a year earlier, short of the 363.1 million-franc average estimate of 14 analysts. Last year’s sales were reduced by 42 million francs by the strength of the Swiss currency.
Straumann expects to perform above the market and revenue this year will be “at least in line” with the 2011 level of 693.6 million francs. The Ebit margin will be similar to the first-half level, which was 14.7 percent, it said.
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