Dentsply International reported record sales and earnings for the first quarter of 2011 (end-March 31). However, over the next several quarters, the company is anticipating some negative effects on its business related to the recent earthquake and tsunami in Japan.
Net sales for the quarter increased 4.5% to $570.5 million, compared with $545.9 million for the first quarter of 2010, while net income increased 17%, from $62 million in the first quarter of 2010 to $69.1 million in the first quarter of 2011.
Net sales of dental consumable and specialty products accelerated during the quarter, while sales of dental laboratory products were lower particularly for precious metal-based materials, the company noted.
On March 15, Dentsply reported that it would be negatively impacted by the March 11 earthquake and tsunami in Japan, including supply disruptions from a key supplier. The company is now executing contingency plans in response to supply chain disruptions.
"Although the situation had only minimal impact on the company's results in the first quarter, it is expected that the effect will increase in magnitude over the next several quarters," Dentsply noted.
"We continue to execute our contingency plans to mitigate the impact of the natural disaster in Japan on both our near-term and long-term results," said Bret Wise, chairman and CEO. "Although we have made substantial progress to date, it is clear that our efforts will not fully mitigate the impact on our results in 2011."
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