Patterson reports slow growth

May 19, 2010

Patterson Companies reported little growth in dental consumables for the fourth quarter (end-April 24) compared to the same quarter last year.

The company's quarterly profits increased 15% from year to year, but most of the growth was from currency fluctuations and acquisitions as the market for dental products struggled toward recovery, the company said.

Patterson earned $61.8 million on sales of $812.7 million in the quarter, compared to $54 million on sales of $779.9 million a year ago.

Sales of Patterson Dental Supply, Patterson's largest business, were $547.2 million in the quarter, up 3% from $533.5 in the year-earlier period.

"Patterson's overall fourth-quarter results generally reflect the impact of the nation's slow economic recovery," said President and CEO Scott P. Anderson in a press release. "This impact was particularly evident in the performance of our dental business in terms of uneven patient demand for dental services and the hesitancy of practitioners to commit to new capital investments."

Sales of consumable dental supplies and printed office products rose 2% from last year's fourth quarter, but were essentially flat with last year's fourth quarter before the impact of currency adjustments. Sales of dental equipment and software, including currency adjustments, were largely unchanged from the year-earlier level. Sales of other services and products, a relatively small part of the company's business consisting primarily of technical service parts and labor, software support services and artificial teeth, rose 16% from last year's fourth quarter.

Anderson said he believes the dental market is stabilizing and that there are signs it is starting to strengthen.

"Although a broadly based recovery of the dental market is expected to be gradual, we are taking a proactive approach, having initiated new sales and marketing programs to stimulate sales in several product categories," he said.