The economic downturn is being blamed for a 62% drop in net profits for dental implant maker Nobel Biocare in the third quarter of 2008 (end-September 30). The Swiss company reported net profit of 13.5 million euros ($17 million U.S.) for the quarter, compared to 35.5 million euros ($45 million) for the same quarter a year ago and well below analyst estimates, which had called for 22.8 million euros ($28.6 million).
Nobel Biocare does not expect the downward trend to reverse itself in the current quarter. In the company's latest interim report, issued November 3, CEO Domenico Scala said, "In view of the increased economic uncertainty and discretionary nature of some of the company's products, Nobel Biocare expects a further slowdown in growth for the remainder of 2008. Nobel Biocare anticipates that its growth will underperform the market average this year due to its geographic and business mix, which is weighted toward large-case treatments, as well as several country-specific issues."
While the company is confident in the long-term fundamentals of its business, Scala added "given the current economic environment, it is not possible at this time to provide any reliable quantitative guidance."
