(Adds detail, analyst comment)
By Julia Mengewein
Of DOW JONES NEWSWIRES
ZURICH -(Dow Jones)- Switzerland-listed surgical implant and device company Synthes Inc. (SYST.VX) Wednesday confirmed its 2009 goals as it reported a stronger-than expected 7.5% rise in third-quarter sales, helped by new products and strong volumes in the existing portfolio, especially in its Trauma unit.
The U.S.-based maker of surgical instruments and products such as nails and plates to fix fractured bones and support the spine, said it expects to maintain its current performance for the balance of the year of low double-digit sales growth in local currencies.
Sales for the three months to September 30 rose 7.5% to $868.3 million, from $807.7 million a year earlier and above analysts' estimates of $865.09 million. Calculated in the currencies where sales were generated, the figure was up 10%.
"Sales, especially in Synthes' most important market, North America, beat expectations, which should lift the shares today," said Christoph Gubler, analyst at Swiss private bank Vontobel.
Synthes, which generates about 60% of its sales in North America, said revenue there rose 9.8% in the third quarter to $528.6 million, coming in above analysts' estimates of $520.8 million.
The company said new trauma product launches and sales of existing products, as well as new spine product sales and an expansion of the spine products sales team had boosted North American sales.
"Synthes did much better than its U.S. rival Stryker Corp. (SYK)," Gubler said.
Stryker Tuesday reported flat sales in U.S.-dollars and shaved the top half of its year guidance, citing weak hospital spending.
Synthes shares have fallen 9% year-to-date, underperforming the Stoxx Europe 600 healthcare sector, which has gained 6.7% over the period.
The market has been cautious on the stock as it's still hard to gauge the impact on Synthes of the U.S. health care reform and its exposure to the economic downturn, especially in the U.S., its most important market.
Synthes, based in West Chester (PA), U.S., is one of the global market leaders in spine and trauma surgery, alongside U.S. rivals Medtronic Inc. (MDT) and Johnson & Johnson's DePuy Orthopaedics Inc. (JNJ), and Stryker.
Company Web site: www.synthes.com
-By Julia Mengewein, Dow Jones Newswires; +41 43 443 80 45; julia.mengewein@dowjones.com