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Dental implant maker Nobel Biocare Holding AG (NOBN.VX) Wednesday reported a better-than-expected second-quarter net profit on lower restructuring costs and higher cost savings, but said its market remains challenging.

Nobel failed to give a quantitative guidance for 2009, but said it sees a stabilization in the market for dental implants, which it saw shrink 10% to 12% in the first half of 2009.

It said net profit for the three months to June 30 rose to EUR28.2 million from EUR24.3 million a year earlier, beating analysts' estimates of a drop to EUR21.86 million. The figure includes restructuring costs of EUR5.8 million, while most analysts had penciled in costs of around EUR10 million.

"Our cost saving measures and efficiency efforts showed good results and Nobel Biocare remains highly profitable," Chief Executive Dominco Scala said during a conference call with journalists. Scala said right now, it doesn't look like more job cuts will be necessary, and he sees the company well prepared for a future recovery of the market.

The Zurich-based maker of implants, crowns and bridges said sales for the period fell 8.7% to EUR153.5 million as patients defer costly treatments in time of recession, while the 10 analysts polled by Dow Jones had called for sales of EUR158.68 million.

"Our growth (in the first six months of 2009) is in line with the market despite deferred scanner revenues and an unfavorable country mix," the company said.

Nobel Biocare is currently launching a new scanner and software system, called Nobel Procera, which will bolster sales as the year progresses, Scala said in the conference call.

While the company has been gaining market share in Asia, especially in Japan, it's losing ground in Europe, Scala said.

Nobel Biocare shares have gained around 24% year-to-date driven by recent M&A speculation and hopes the company will benefit from its restructuring efforts once demand for its products picks up again.

Its shares closed Tuesday at EUR26.50.

Tuesday, Nobel Biocare's Swiss rival Straumann Holding AG (STMN.EB) reported a 6.9% drop in first-half sales, but said it had gained market share in the first six months of the year, also from Nobel.

Company Web site: www.nobelbiocare.com; www.straumann.com

-By Julia Mengewein, Dow Jones Newswires; +41 43 443 80 45; julia.mengewein@dowjones.com