Henry Schein Inc., Long Island's largest public company based on revenue, Monday reported higher first-quarter net sales, and slightly higher net income, despite the impact of the stronger U.S. dollar.
Net sales for the quarter ended March 28 were $2.5 billion, an increase of 1.4 percent compared with the prior year's period. A 7.4 percent increase based on local currencies was blunted by a 6 percent decline tied to foreign currency exchange.
The Melville-based distributor of health care products to dentists, veterinarians and doctors posted net income of $103.4 million, or $1.22 per diluted share. That compared to $102.1 million, or $1.18 per diluted share, in the year-earlier period.
"Our first-quarter financial results were solid . . . as we continued to gain market share in each of our four business groups," said Stanley M. Bergman, chief executive and chairman of Henry Schein. "Total sales growth was negatively impacted by the strengthening of the U.S. dollar, particularly against the euro."
The company reaffirmed its forecast of adjusted diluted earnings per share of $5.90 to $6 in 2015, an increase of 8 percent to 10 percent versus 2014.
Shares of Henry Schein gained 2.32 percent to close at $142.06.
Bergman pointed to weakness in the quarterly performance of the dental business, which reported sales of $1.3 billion, a year-over-year decline of 3.6 percent. Foreign currency exchange accounted for a 6.9 percent decrease, offsetting 3.3 percent growth in local currencies.
Currency fluctuations trimmed about 6 cents from diluted earnings per share, and a previously announced restructuring cut an additional 6 cents per share.
For the quarter, Schein's animal health unit reported sales of $684.3 million for the quarter, an increase of 4.6 percent; medical sales of $443.5 million, an increase of 11.6 percent, and technology and value-added services sales of $85.7 million, an increase of 5.4 percent.In a conference call with analysts, Bergman said that there is more in the company's merger and acquisition pipeline than the company "could possibly execute on" to properly integrate the targets. Henry Schein often targets family-owned companies seeking to sell part of the business, while keeping at least some managers in place, he said.