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Swiss dental implant maker Nobel Biocare Holding AG (NOBN.VX) Wednesday reported a rise in third-quarter net profit on gains from investments and saw initial signs of stabilization in demand for dental implants, but said talk of a full-fledged recovery was premature.

Nobel, the world's largest maker of dental implants by sales, again failed to give guidance for 2009, citing low visibility. Nobel said it sees many markets stabilizing, particularly in Europe, after an estimated 8% overall market decline in the first nine months. The company's revenue is highly sensitive to economic swings because many treatments are elective and can be postponed.

"Although there are signs of stabilization, it is premature to talk about a recovery in the marketplace," Nobel Chief Executive Domenico Scala told journalists on a media call after third-quarter earnings.

The Zurich-based maker of implants, crowns and bridges said net profit for the three months ended Sept. 30 more than doubled to EUR33.6 million, after EUR13.50 million a year earlier, helped by gains on funding structures and various currency swings. The 10 analysts polled by Dow Jones had called for a net profit of EUR15.72 million.

Investors welcomed the company's results, despite its muted outlook, and at 1150 GMT shares in Nobel Biocare traded CHF2.96 higher, or up 10.3% at CHF31.84, in a slightly firmer Swiss market.

"The company's profitability continued to be strong, even including restructuring charges in the third quarter, which is usually the seasonally weakest," said Sal. Oppenheim analyst Stephan Vollert, who rates the stock at buy.

Not all analysts were pleased by the result, however.

"Given the outlook for unemployment figures it's possible that the market in Europe may fall again," Sal. Oppenheim analyst Stephan Vollert, who rates Nobel Biocare at neutral, said.

Sales fell 5.6% to EUR125.3 million from EUR132.8 million a year ago, missing analyst forecasts of EUR128 million. Bernstein Research said Nobel lagged rivals such as Biomet Inc. (BMET), Zimmer Holdings Inc. (ZMH), and Straumann Holding AG (STMN.EB) in the quarter.

"This is surprising given Nobel Biocare's recovery to market growth earlier this year, and the Procera launch that started in June," Bernstein analyst Lisa Bedell Clive said. Bedell Clive, who rates Nobel at marketperform.

Scala demurred when asked whether Nobel, which lost market share to rivals in 2008, could begin winning back share in 2010, or whether the overall dental implant market would grow next year. Scala said whether Nobel Biocare can win share depends heavily on the performance of NobelProcera, a scanner and software system.

In 2009, Nobel Biocare plans to sell 500 of those new scanners and CFO Dirk Kirsten said the company is on track with the shipments.

Turning to acquisitions, Scala said Nobel is currently looking at a number of targets. The firm has roughly EUR200 million in cash for acquisitions, he said.

"But right now we don't have any plans to tap our financial resources," CFO Kirsten said.

Nobel Biocare shares gained 35% year-to-date, as its markets stabilized after having deteriorated as patients deferred big ticket dentistry treatments.

That compares with a 31% rise at Swiss rival Straumann Holding AG (STMN.EB) over the same period. Straumann last week reported a 4.6% drop in third-quarter sales and disappointed with its 2009 sales forecast of a drop between 5% and around 6%.

Company Web site: http://www.nobelbiocare.com

-By Katharina Bart, Dow Jones Newswires; +41 43 443 80 43; katharina.bart@dowjones.com; julia.mengewein@dowjones.com

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