Nobel Biocare 1Q Net Profit Jumps On Cost Cuts, Beats Views

Nobel Biocare Holding AG (NOBN.VX), the world's largest dental implant maker by sales, Wednesday reported a better-than-expected first quarter net profit, saying cost cuts helped it boost profits.

The Zurich-based company said net profit for the three months to the end of March rose to EUR38.7 million from EUR18 million a year earlier. The figure beat estimates for a bottom line result of EUR22 million as Nobel benefited from cost-cutting and staff reductions.

Sales, however, fell as the company, which is the biggest player in the U.S., faced challenging dental implant markets in the U.S. and elsewhere. Overall revenue fell 7.1% to EUR136.7 million from EUR147 million a year earlier. Sales in North America dropped 6.7% to EUR44.5 million. Analysts had expected overall sales to remain flat.

The sales figures were in contrast to that of competitors such as U.S. Zimmer Holdings Inc (ZMH), closely held Biomet Inc (BMET) and Swiss peer Straumann holding AG (STRM.EB), which all benefited from rising demand.

"The dental implant market continued to be challenging in most regions. Our first quarter result was disappointing," said Chief Executive Domenico Scala. While he didn't give a clear outlook for 2010, Nobel Biocare said that some dental implant markets have started to stabilize and may resume growth in 2010.

Web Site:www.nobelbiocare.com

-By Goran Mijuk, Dow Jones Newswires, [phone]; [e-mail]