UPDATE: Nobel Biocare's Turnaround Stalls, Says Outlook Tough
11 Agosto 2010 - 7:23AM
Noticias Dow Jones
Nobel Biocare Holding AG (NOBN.VX) Wednesday warned the Swiss
dental implant maker may struggle for up to another year before
catching up with peers due to slow demand in its key markets such
as the U.S. and Spain, sending its shares, which have already shed
45% this year, more than 10% lower.
Nobel Biocare, which reported a second-quarter net profit fall
of 30.5% to EUR19.6 million from EUR28.2 million, said that
although sales notched up to EUR155 million from EUR153.5 million
on the back of currency gains, it continued to lose market share
and may continue to do so during the remainder of the year.
Chief Executive Domenico Scala said that while he expects the
dental implant market to start to grow again in 2010, it may take
between nine to 12 months before Nobel Biocare can "return to at
least market growth", pouring cold water on hopes for a faster
turnaround.
To close the gap to its key competitors, Scala said the company
would increase investments in research and development and
marketing, a step analysts view as necessary although it will hit
margins in the medium term. "We are confident that our strategy of
broadening Nobel Biocare's product ... portfolio, as well as the
measures that have already been taken, will allow us to return to
growth," CEO Scala said.
Once the world's largest dental implant maker by sales, the
company slithered into troubles in the U.S. before the economic
crisis began as customers complained about an overly aggressive
marketing strategy under its former management.
Revamp efforts under its then fresh CEO Scala were undermined by
the financial and economic crisis as many customers postponed
costly dental surgery and as health care insurance firms started to
curtail reimbursements for certain dental operations.
Nobel Biocare's troubles were intensified due to its
comparatively costly products and its strong presence in the U.S.
and Spain, which were among the hardest hit economies during the
financial crisis. CEO Scala noted that without an improvement of
the job situation in these countries, dental implant market would
remain under pressure.
Nobel Biocare's troubles, meanwhile, were good news for its key
competitors, which were all able to improve sales during the second
quarter. Dentsply International Inc (XRAY), Zimmer Holdings Inc
(ZMH) and Biomet Inc (BMET) were able to grow at the expense of
Nobel Biocare and Swiss peer Straumann Holding AG (STMN.EB), which
will report figures on August 18, is expected to have extended its
lead over Nobel Biocare, analysts said.
"Hopes that results may signal that the worst is over for Nobel
have been clearly premature," said Sarasin analyst David Kaegi. He
expects the company to remain under pressure for the time being,
adding that the company's hopes to turn around looked "optimistic"
given the current market situation.
At 1126 GMT, shares of Nobel Biocare were down 12.25%, or
CHF2.31, at CHF16.54.
-By Goran Mijuk, Dow Jones Newswires, +41 43 443 80 47;
goran.mijuk@dowjones.com
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