Henry Schein reports another jump in profits
Henry Schein Inc., a distributor of medical products, reported another jump in profits on Thursday as its sales of medical and veterinary supplies continued to grow.
The Melville-based company's net income rose 3.8 percent, to $98 million, during April, May and June, compared to the same period last year. Sales rose 3.3 percent, to $2.2 billion.
Earnings per share were up nearly 7 percent, to $1.08 a share, compared to $1.01 last year.
Despite the increases, Schein's largest unit, sales of dental products, dipped 1.3 percent, to $1.2 billion, compared to the same period last year. The company attributed the dip to several factors, including a lackluster economy and exchange rates for the euro and Canadian dollar.
"While we are pleased with the performance of each of our business units during the quarter, our financial results were adversely affected by foreign currency exchange," Henry Schein chairman and chief executive Stanley M. Bergman said in a prepared statement.
The company's sale of veterinary products swelled by 11.4 percent, to $586.3 million. The growth was particularly strong in North America, where an unseasonably warm winter caused animal parasites to grow faster, boosting sales of flea and tick products.
Henry Schein's medical sales increased 5.9 percent, to $361.1 million. That growth stemmed primarily from North America, where revenue climbed 7.2 percent. International sales dipped 11.7 percent.
Profits at the 80-year-old company have risen steadily in recent years as international demand has grown for dental implants, surgical instruments and other medical supplies. In the United States that growth has been fueled by baby boomers, who are more likely than members of previous generations to visit doctors, dentists or take pets to the vet.
Henry Schein's stock fell .15 percent to $74.92 Thursday, as investors reacted broadly to the European Central Bank's indication that it was not taking immediate steps to shore up the euro-zone economies.