Straumann to cut jobs in Europe
- Details
- Published: Friday, 30 November 2012 11:53
- Written by News Editor
- Hits: 1636
Straumann chief executive Beat Spalinger said the company had decided to cut 150 jobs by the start of 2013 - roughly 6 percent of its global workforce - after operating margins fell below 15 percent in the first half of the year, a level he deemed "unacceptable". The axe will fall on jobs at Straumann's headquarters in Basel as well as sales subsidiaries around the world while manufacturing will be spared, Spalinger said.
Third-quarter sales rose 4 percent to 156.8 million Swiss francs ($167.41 million), compared with an average estimate in a Reuters poll of 158 million. The company said the cost cuts would improve annual operating profit by 35-40 million francs by 2014. It plans to book an exceptional charge of 15-20 million francs in 2012.
Straumann, which makes more than half of its revenue in Europe, said sales in the region fell 2.5 percent in the third quarter to 82.3 million francs, hampered by austerity measures that weakened consumer confidence further.
In the worst affected markets of Spain and Italy, Spalinger said he did not expect any improvement in the near future. The European sales decline was partly offset by North America and Asia Pacific where sales leapt 19 percent and 6 percent respectively buoyed by favourable currency effects.
Straumann also said it would increase its stake in Dental Wings, a maker of dental software and scanners, to 45 percent from 30 percent for an undisclosed sum. The move is part of a trend towards digital dentistry to optimise production.
The company confirmed its outlook for full-year sales to be at least in line with 2011 and for growth in the global tooth replacement market to remain flat at best over the full year.
You need to be logged in to leave comments.
Report