DOW JONES NEWSWIRES
Patterson Cos.' (PDCO) fiscal third-quarter profit declined 1.2%
as lower dental and veterinary supply revenue more than offset an
increase in rehabilitation supply sales and higher operating
expenses.
The wholesaler of dental, veterinary and other products had seen
especially strong sales in its dental business, although in the
latest quarter, sales within the dental supply business dropped
2.6%. Patterson last week hinted sales in the dental equipment
category were much softer than expected during the latest
quarter.
Still, President and Chief Executive Scott P. Anderson said the
company believed the fundamentals of the North American dental
market are strengthening, as growth was seen for consumables during
the quarter. However, Anderson said the dental technology equipment
business "did not perform at planned levels."
For the quarter ended Jan. 29, Patterson posted a profit of
$55.4 million, down from $56 million a year earlier. On a per-share
basis, results were flat at 47 cents, as the company had 0.5% fewer
shares outstanding in the latest period. Revenue inched up 0.6% to
$824.7 million.
Last week, the company projected earnings of 46 cents to 47
cents on revenue of $825 million, a view that missed Wall Street's
then expectations.
Gross margin jumped to 34.1% from 33.7%. Operating margins,
however, narrowed to 11.2% from 11.4% as operating expenses grew
3.2%.
Sales of consumable and printed products--Patterson's biggest
top-line contributor--rose 3.8%, while equipment and software
revenue decreased 6.7%.
Shares closed at $32.74 Wednesday and were inactive in premarket
trading.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com