07.27.09
$2.2 Billion
KEY EXECUTIVES:
KEY EXECUTIVES:
Bret W. Wise, Chairman and CEO
Christopher T, Clark, President and Chief Operating Officer
William R. Jellison, Senior VP and CFO
James G. Mosch, Executive VP
Robert J. Size, Operating Sr. VP
NO. OF EMPLOYEES: 9,400
GLOBAL HEADQUARTERS: York, Pa.
Despite extreme volatility in the foreign exchange markets throughout 2008 and the global economic downturn in the fourth quarter, officials at Dentsply remained bullish about the company’s performance and how it is positioned for 2009.
Their enthusiasm is well-founded. For fiscal 2008 (ended Dec. 31), overall sales increased 9.2 percent to $2.2 billion; sales excluding precious metal content were $2 billion, a 9.6 percent improvement over 2007. Diluted earnings per share, not taking into account restructuring charges and other related items, tax adjustments and certain other adjustments—reflected 13.3 percent growth. Net earnings for the year grew to $283.8 million from $259.6 million in 2007. The increase in sales for the year primarily resulted from strong growth in the specialty product areas of endodontics, implants and orthodontics. Acquisitions and favorable foreign exchange impacts also benefited sales growth for the full year, according to the company. Through its own internal research centers, as well as through its collaborations and partnerships with external research institutions and dental schools, Dentsply fueled new product development with an investment of approximately $52.3 million for 2008. As a result, the company on average releases approximately 20 new products a year.
Recent acquisitions contributed 2.1 percent to the year’s results, while organic growth was 3.8 percent. Dentsply’s leadership also attributed the results, in part, to the company’s “vast geographic footprint and the breadth and depth of our product offerings, which help to dissipate the impact of softness in individual markets.” Further expanding its global reach, Dentsply acquired a majority interest in Italy-based Zhermack (a producer of dental materials) in late 2008. It also purchased Belgium-based E.S. Healthcare, a manufacturer of dental laboratory products. Terms of the deals were not disclosed.
A total of 62 percent of sales, excluding precious metal content (a variety of precious metals are used to manufacture the company’s implants, and the cost is included in the total price of the implant), came from outside the United States. All six of the company’s franchises—preventive, orthodontic, restorative, endodontic, prosthetic and implant—reported increased sales. On a geographic basis, sales in Europe were particularly strong, officials noted, while developing markets such as China, India, the Middle East and Russia continued to grow rapidly.
Fiscal 2008 also brought a series of management promotions. Chris Clark was promoted to president, in addition to his previous role as chief operating officer. Clark has been with the company since 1992. Jim Mosch was elevated to executive vice president from senior vice president and general manager. Mosch continues his responsibilities for both manufacturing operations and selling organizations located in the United States, Europe, Australia, Brazil, Latin America and Mexico. Bert Sterkenburg was promoted to senior vice president. His new responsibilities include the company’s implant franchise, and he continues his operating responsibilities over both manufacturing operations and selling organizations located in the United States, Europe and Asia. Prior to this appointment, Sterkenburg served as vice president and general manger of the VDW division.
Looking at future performance, executives claim Dentsply’s business is less susceptible than other industries to general downturns in the economies in which it operates.
“Many of the products the company offers relate to dental procedures that are considered necessary by patients regardless of the economic environment. Dental specialty products and products that support discretionary dental procedures are the most susceptible to recessionary conditions,” according to the company’s most recent annual report.
Among the positive demographics, Dentsply’s leadership identifies an aging population as bolstering its continued growth (as well as other device sectors). Growth of the global population 65 or older is expected to nearly double by the year 2030. In addition to having significant needs for dental care, the elderly are well-positioned to pay for the required procedures since they control sizable amounts of discretionary income, according to the company. In addition, natural teeth are being retained longer, and individuals with natural teeth are much more likely to visit a dentist in a given year than those without any natural teeth remaining, company executives predict. In addition, dentistry in North America and Western Europe has been “transformed” from a profession primarily dealing with pain, infections and tooth decay to one with increased emphasis on preventive care and cosmetic dentistry.
Dentsply’s net sales in the first quarter of 2009 decreased 9.6 percent to $506.9 million compared to $560.8 million reported for the first quarter of 2008. The change in net sales, excluding precious metal content, was driven by currency translation, which reduced sales by 6.9 percent, according to the company.
Christopher T, Clark, President and Chief Operating Officer
William R. Jellison, Senior VP and CFO
James G. Mosch, Executive VP
Robert J. Size, Operating Sr. VP
NO. OF EMPLOYEES: 9,400
GLOBAL HEADQUARTERS: York, Pa.
Despite extreme volatility in the foreign exchange markets throughout 2008 and the global economic downturn in the fourth quarter, officials at Dentsply remained bullish about the company’s performance and how it is positioned for 2009.
Their enthusiasm is well-founded. For fiscal 2008 (ended Dec. 31), overall sales increased 9.2 percent to $2.2 billion; sales excluding precious metal content were $2 billion, a 9.6 percent improvement over 2007. Diluted earnings per share, not taking into account restructuring charges and other related items, tax adjustments and certain other adjustments—reflected 13.3 percent growth. Net earnings for the year grew to $283.8 million from $259.6 million in 2007. The increase in sales for the year primarily resulted from strong growth in the specialty product areas of endodontics, implants and orthodontics. Acquisitions and favorable foreign exchange impacts also benefited sales growth for the full year, according to the company. Through its own internal research centers, as well as through its collaborations and partnerships with external research institutions and dental schools, Dentsply fueled new product development with an investment of approximately $52.3 million for 2008. As a result, the company on average releases approximately 20 new products a year.
Recent acquisitions contributed 2.1 percent to the year’s results, while organic growth was 3.8 percent. Dentsply’s leadership also attributed the results, in part, to the company’s “vast geographic footprint and the breadth and depth of our product offerings, which help to dissipate the impact of softness in individual markets.” Further expanding its global reach, Dentsply acquired a majority interest in Italy-based Zhermack (a producer of dental materials) in late 2008. It also purchased Belgium-based E.S. Healthcare, a manufacturer of dental laboratory products. Terms of the deals were not disclosed.
A total of 62 percent of sales, excluding precious metal content (a variety of precious metals are used to manufacture the company’s implants, and the cost is included in the total price of the implant), came from outside the United States. All six of the company’s franchises—preventive, orthodontic, restorative, endodontic, prosthetic and implant—reported increased sales. On a geographic basis, sales in Europe were particularly strong, officials noted, while developing markets such as China, India, the Middle East and Russia continued to grow rapidly.
Fiscal 2008 also brought a series of management promotions. Chris Clark was promoted to president, in addition to his previous role as chief operating officer. Clark has been with the company since 1992. Jim Mosch was elevated to executive vice president from senior vice president and general manager. Mosch continues his responsibilities for both manufacturing operations and selling organizations located in the United States, Europe, Australia, Brazil, Latin America and Mexico. Bert Sterkenburg was promoted to senior vice president. His new responsibilities include the company’s implant franchise, and he continues his operating responsibilities over both manufacturing operations and selling organizations located in the United States, Europe and Asia. Prior to this appointment, Sterkenburg served as vice president and general manger of the VDW division.
Looking at future performance, executives claim Dentsply’s business is less susceptible than other industries to general downturns in the economies in which it operates.
“Many of the products the company offers relate to dental procedures that are considered necessary by patients regardless of the economic environment. Dental specialty products and products that support discretionary dental procedures are the most susceptible to recessionary conditions,” according to the company’s most recent annual report.
Among the positive demographics, Dentsply’s leadership identifies an aging population as bolstering its continued growth (as well as other device sectors). Growth of the global population 65 or older is expected to nearly double by the year 2030. In addition to having significant needs for dental care, the elderly are well-positioned to pay for the required procedures since they control sizable amounts of discretionary income, according to the company. In addition, natural teeth are being retained longer, and individuals with natural teeth are much more likely to visit a dentist in a given year than those without any natural teeth remaining, company executives predict. In addition, dentistry in North America and Western Europe has been “transformed” from a profession primarily dealing with pain, infections and tooth decay to one with increased emphasis on preventive care and cosmetic dentistry.
Dentsply’s net sales in the first quarter of 2009 decreased 9.6 percent to $506.9 million compared to $560.8 million reported for the first quarter of 2008. The change in net sales, excluding precious metal content, was driven by currency translation, which reduced sales by 6.9 percent, according to the company.