Henry Schein 4th-qtr profit climbs due to greater international revenue, lack of big charges

Henry Schein 4Q profit jumps on overseas sales

MELVILLE, N.Y. — Medical and dental device maker Henry Schein Inc. said Tuesday its profit climbed 54 percent in the fourth quarter as its international sales grew and one-time costs decreased.

For the quarter ended Dec. 26, the company earned $86.4 million, or 94 cents per share. That’s up from $56 million, or 63 cents per share, a year earlier. Its fourth-quarter 2009 results included a small credit, while the 2008 results included $23.2 million in restructuring costs and a $7.1 million loss from discontinued operations.

Excluding items, adjusted profit rose to 93 cents per share from 88 cents per share.

Henry Schein said its revenue increased 13 percent to $1.79 billion from $1.58 billion. That was mostly due to better dental group and international group revenue, which increased in foreign markets largely due to favorable currency exchange rates.

Thomson Reuters said analysts were expecting a profit of 91 cents per share and revenue of $1.67 billion.

In midday trading, shares of Henry Schein rose 29 cents to $57.47. Earlier they reached an annual high of $57.83.

In the fourth quarter, the company’s dental group revenue rose 1.5 percent to $671.7 million. Most of the growth was due to the weaker dollar. Excluding the effects of currency exchange rates, Henry Schein said dental consumable merchandise revenue grew 4 percent and dental equipment and service revenue fell 7.2 percent.

The company’s international group sales rose 32 percent to $699.1 million. The majority of the growth came from greater sales, but foreign currency rates added 13 percent to that growth.

Medical group revenue rose 5.5 percent to $368.2 million, and technology and value added service revenue grew 11 percent to $47.1 million.

For the full year 2009, Henry Schein said its profit grew 30 percent to $311.2 million, or $3.44 per share, from $239.5 million, or $2.63 per share. Revenue edged up 2 percent to $6.54 billion from $6.38 billion.

The company backed its outlook for the 2010, calling for a profit of $3.40 to $3.56 per share. Analysts expect $3.47 per share, on average.