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Swiss dental implants maker Straumann Holding AG (STMN.EB) Thursday reported a slightly steeper-than-expected 4.6% drop in third-quarter sales and gave a lower-than-expected outlook for full-year sales.

Third-quarter sales dropped to 168.2 million Swiss francs ($164.9 million), from CHF176.40 million a year earlier. Analysts had forecast sales of CHF169.45 million.

Straumann for the first time revealed a precise sales outlook for this year--it expects sales of between CHF730 million and CHF740 million, down between 5% and 6.3% from 2008, and an operating margin between 22% and 24%.

Straumann said it expects the dental implants market to fall in a mid-single digit percentage range in 2009 while its own sales should decline between 1% and 2% in local currencies.

"The figures are below estimates and the sales guidance is around 2.5% of what the market had expected," said Christoph Gubler, analyst at Swiss private bank Vontobel. "However, the guided EBIT margin is a tad above what analysts had called for, so the company seems to have its costs under control," he added. Gubler, who rates Straumann at hold, added that Straumann is still doing better than some of its rivals.

Earlier this month, U.S.-based rivals Zimmer Holdings Inc. (ZMH) and Biomet Inc. (BMET) reported a 5% and 6% respective on-year decline in third-quarter sales in their dental implant divisions.

Analyst Sibylle Bischofberger of Zuercher Kantonalbank expects the shares to react negatively to the news. "While we see a stabilization in the market, there's no recovery in sight. Straumann is still doing good, but cannot evade the overall weakness," the analyst, who rates Straumann at marketweight, added.

Year-to-date, Straumann's shares have gained 45%, compared with rival Nobel Biocare Holding AG (NOBN.VX), which gained 35% in the same period. Nobel Biocare will release third-quarter earnings Nov. 4.

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