In the first three months of 2013, the Straumann Group generated revenue of 175 million Swiss francs ($187 million), down 6% from revenues of 185 million francs ($197 million) for the same quarter a year ago.
While revenue developments were stable in North America and positive in China and Latin America, the large European and Japanese markets suffered further from the weak economy and competition from lower cost players, the company noted in a press release.
In response to the longer-than-anticipated delay in market recovery, Straumann announced further restructuring and cost-saving initiatives, including the reduction of approximately 200 jobs, bringing the global workforce to about 2,230 by year end. Most of the reductions (110) are planned at the group's headquarters in Basel, Switzerland.
"The first quarter provided further evidence that consumer sentiment is not recovering at the expected pace and our environment is changing faster than anticipated," said CEO Marco Gadola in the release. "We are therefore stepping up our efforts to adapt organizationally and strategically. Our present organization was built based on rather bullish market growth expectations but, in view of current developments and the midterm economic outlook, today's level of staffing is no longer sustainable."
Implant sales in the first quarter benefited from the recently introduced NNC implant and the Bone Level range, but were generally softer than in the comparative period of last year, the company noted.
The restoratives business, which comprises digital products, CAD/CAM milled elements, and standard prosthetics, also was slower. This reflects the competitive landscape in general, the discontinuation of the intraoral scanner distribution business in October, and transfer of Straumann's software and guided surgery business to Dental Wings, according to Straumann.
