Straumann Q3 sales up; workforce cuts loom

Despite a sluggish European market,Straumann saw a year-over-year increase in sales for the third quarter of 2012 (end-September 30). Even so, the company plans to cut some 150 jobs by early next year

The company reported net revenues of 157 million Swiss francs ($168 million), a 4% increase over net revenues of 151 million Swiss francs ($162 million) for the same quarter a year ago.

North America was the key driver, accompanied by strong growth in China and Latin America. However, these solid performances were not enough to compensate for sluggish sales elsewhere -- particularly in Europe, where the tooth replacement market has suffered from further deterioration in the economic environment, according to the company.

As a result, Straumann will reduce its global workforce by about 150 by early 2013; this is approximately 6% of its workforce, which stood at 2,575 at the end of September. About 90 of the eliminated positions will come from redundancies.

In addition, Straumann plans to strengthen its collaboration with Dental Wings by transferring its software development teams and increasing its stake in Dental Wings to about 45% by the end of 2012.

"With our margins reaching unacceptable levels in the first half of the year, we scrutinized our cost structure and determined substantial, balanced resizing measures that will not compromise our growth prospects," said Beat Spalinger, Straumann president and CEO, in a press release. "The initiatives we are announcing will help restore decent margins, even if the market remains sluggish."

Page 1 of 272
Next Page