Dentsply International Inc. said Thursday its first-quarter net income rose 12 percent on higher sales of dental products.
But, the company set new, lower profit guidance for 2011 after considering supply chain disruptions in the Japanese market in the aftermath of the March 11 earthquake and tsunami.
The company earned $69.1 million, or 48 cents per share, in the three months that ended March 31, up from $61.8 million, or 41 cents per share, in the prior-year quarter. Revenue rose 45 percent to $570.5 million from $545.9 million.
Excluding charges, the company said it earned 49 cents per share. Analysts polled by FactSet expected 48 cents per share in profit on $555.9 million in revenue.
During the quarter, the company said sales of dental consumable and specialty products gained ground while laboratory product sales fell.
Meanwhile, the company reinstated a 2011 profit outlook after factoring in the negative impact from March 11 earthquake and tsunami in Japan. Dentsply had pulled its guidance on March 15 after saying it had implemented contingency plans in response to the supply chain disruptions.
Dentsply now expects 2011 profit between $1.86 and $1.98 per share, down from prior guidance issued in February of $2 to $2.08 per share. Analysts had forecast profit of $2.01 per share.
"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," the company said.
Shares of Dentsply rose $1.38, or 3.8 percent, to $38.14 in morning trading.