Nobel Biocare Holding AG (NOBN), the world’s second-biggest maker of dental implants, reported profit that beat analysts’ estimates after the company reduced costs and sales were boosted by a weaker euro.
Earnings before interest and taxes were 21.6 million euros ($26.9 million) in the second quarter, compared with 22.4 million euros a year earlier, the Glattbrugg, Switzerland based- company said in a statement today. Analysts had expected 20.3 million euros, according to the average of 13 estimates in a Bloomberg survey.
Nobel Biocare is retraining sales staff and developing new products in a bid to regain market share lost to Straumann Holding AG (STMN) over the last few years amid management changes and a disappointing sales start for its Procera implant design system.
“We are aware the market is softening and have already made adjustments for that,” Chief Executive Officer Richard Laube said during a conference call today.
Revenue increased to 149 million euros from 142.9 million euros, missing the 152.6-million-euro average estimate of 15 analysts.
Nobel Biocare gained 0.5 percent to 9.22 Swiss francs in Zurich trading, giving the company a market value of 1.14 billion francs ($1.18 billion).
Markets developed “less favorably than anticipated” during the first half of the year and the economic situation in many countries will probably remain challenging, Nobel Biocare said in the statement. The company still forecasts earnings before interest and taxes this year will be in line with 2011 and now says it expects sales “in line with the market” compared with a previous forecast for “modest” revenue growth at constant exchange rates.
Straumann, the market leader by sales, dropped the most in almost four years in Zurich trading yesterday after first-half profit missed analysts’ estimates. The company now expects the overall dental implant market will be stable “at best” this year and may contract.
Nobel Biocare’s profit was above expectations and a “positive surprise” following Straumann’s results yesterday, Oliver Metzger, an analyst with Commerzbank AG, said in an interview.
“It’s important to mention that the business performed in line with the market, which shows the company had achieved the turnaround,” he said.
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