Dental implant maker Nobel Biocare is blaming the economic downturn in certain key markets for a sharper-than-expected 45% drop in first-quarter net profit.
The company reported a net profit of 18 million euros ($23 million) in the first three months of 2009, down from 32.90 million euros ($43.7 million) for the same period a year ago. Sales for the quarter totaled 147 million euros ($195 million).
Due to the elective nature of certain of its products and services, the company said its revenues are being affected by treatment postponements and lower patient flows. Based on its estimates, growth in the dental implant market has declined at a high single-digit rate, and it is "unlikely that the situation will improve in the coming months," the company said.
Nobel Biocare has implemented various cost-saving measures, including cutting 137 jobs during the first quarter. The company had already eliminated 50 jobs in the fourth quarter of 2008.
"Although we see no signs that the market will improve over the coming months, we remain focused on driving our efficiency gains and product launches to offer more treatment options to our customers," CEO Domenico Scala said in a press release. "Despite a continued challenging market environment, we are growing our NobelActive franchise with the newly extended product range and are on track to launch the new NobelProcera CAD/CAM system and product line, which received a very positive response from dental professionals at recent industry trade shows."
Copyright © 2009 DrBicuspid.com
