Henry Schein Inc., Long Island's largest public company based on 2014 revenue, Wednesday posted a second-quarter net sales increase of 0.5 percent over the year-ago period, to $2.6 billion, as the strong U.S. dollar stunted growth.
Revenue rose 7.5 percent based on local currencies, including the euro, with about half of that gain driven by acquisitions, the company said.
Restructuring costs of 6 cents per share lowered diluted earnings per share to $1.40. Earnings per share in the prior year's quarter came in at $1.35. Overall net income was $117.9 million compared with $116.2 million in the 2014 quarter for the global distributor of dental, veterinary and medical products to practitioners' offices.
In a telephone interview from Paris, chairman and chief executive Stanley M. Bergman said "currency fluctuations" hurt the quarter's sales.
Bergman said the company is focusing capital on animal health, specialty dental and the software business.
"Customers who use our software tend to buy more consumables from us," Bergman said.
The Melville company reaffirmed its financial guidance for 2015 of diluted earnings per share of $5.90 to $6 excluding restructuring costs.
Henry Schein shares fell 2.1 percent Wednesday to $146.54.
In a research note, Evercore ISI analyst Michael Cherny said that the quarterly results show that Henry Schein can deliver growth while navigating "through a multitude of headwinds."
The strong dollar makes goods sent to Europe and other areas with weaker currencies more expensive and less competitive. And when U.S. companies make sales in euros, the translation back to dollars reduces their sales and earnings numbers.
Sales of Henry Schein's largest unit, its dental group, fell 3.5 percent to $1.3 billion after accounting for an 8 percent decline related to foreign currency exchange.
Animal health sales edged down 0.8 percent to $748.6 million, with an 8.7 percent decline from foreign currency exchange. Medical sales climbed 16.7 percent to $470.5 million despite a 1 percent decline related to currency fluctuations.