Nobel Biocare continues with its organizational re-alignment of corporate functions in Sweden

Posted on 26, June 2013 by | This entry was posted in Business, Management, Pharma & Biotech, Sweden, Switzerland and tagged , , . Bookmark the permalink.

26-6-2013 — /europawire.eu/ — Nobel Biocare announced today the continuation of its functional re-alignment program, affecting primarily the corporate functions in Gothenburg, Sweden. The company has initiated an appropriate and responsible negotiation process with the respective local labor unions. This re-alignment does not affect the Nordic commercial entity located in Gothenburg, nor the manufacturing sites in Karlskoga and in Stockholm.

In 2012, Nobel Biocare initiated a continuous efficiency and effectiveness program of which part of the benefits are being reinvested to build market share through innovation, customer partnering activities and training and education efforts. Globally, over 250 positions have already been successfully re-aligned and over 70 positions reduced since mid 2012. The company is now moving to the next phase of re-alignment.

Approximately 70 employees in Gothenburg are involved in this next step over a period of 18 months, which will include relocation and early retirement offers. This process will reduce the complexity of the organization, streamline processes and improve communication within the group. It will result in some further headcount reduction in the group over this period. Estimated additional non-recurring costs of EUR 6.2 million for departures, severance, relocation and retention will be booked in the second quarter 2013.

These measures will not change Nobel Biocare’s short-term revenue outlook, which remains to target modest market share gains and to deliver modest revenue growth in 2013. Subsequently, barring any unforeseen events Nobel Biocare expects to deliver an EBIT margin improvement of 50 to 100 bps at constant exchange rates (CER),excluding the above stated additional non-recurring cost.

Within the next 3 to 5 years, assuming markets improve beyond 2013 to modest mid single-digit growth, Nobel Biocare targets growing at least in line with the market and improving the EBIT margin also continually between 50 to 100 bps per annum at CER.

Further information is available from:

Süha Demokan
Head of Investor & Corporate Relations
Tel: +41 43 211 42 30, +41 79 430 81 46
suha.demokan@nobelbiocare.com

Nobel Biocare (NOBN, SIX Swiss Exchange) is a world leader in innovative restorative and esthetic dental solutions. As a complete solutions provider, Nobel Biocare offers the most comprehensive range of solutions from tooth to root, for single tooth to fully edentulous indications. The solutions portfolio covers dental implants (including the key brands NobelActive®, Brånemark System® and NobelReplace®, individualized prosthetics and equipment (NobelProcera®, guided surgerysolutions and biomaterials). Nobel Biocare has  approximately 2’500 employees and recorded revenue of EUR 580.5 million in 2012. The company is headquartered in Zurich, Switzerland. Production takes place at seven sites located in Canada, Israel, Japan, Sweden, and the US. Nobel Biocare has 34 direct sales organizations.

Disclaimer
This media release contains forward-looking statements based on beliefs of Nobel Biocare’s management. When used in this media release, words such as “anticipate”, “believe”, “estimate”, “expect”, “intend”, “plan” and “project” are intended to identify forward-looking statements. They may involve risks and uncertainties, including technological advances in the medical field, product demand and market acceptance, the effect of economic conditions, the impact of competitive products and pricing, foreign currency exchange rates and other risks. These forward-looking statements reflect the views of Nobel Biocare as of the date made with respect to future events and are subject to risks and uncertainties. All of these forward-looking statements are based on estimates and assumptions made by management of the company and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results or experience could differ materially from the forward-looking statements. Nobel Biocare disclaims any intention or obligation to update these forward-looking statements.

Media contact

Süha Demokan
Vice President Investor & Corporate Relations
Address:
Nobel Biocare Management AG
P.O. Box
CH – 8058 Zurich-Airport
Switzerland
Tel: +41 43 211 42 30
Mobile: +41 79 430 81 46
Fax: +41 43 211 58 11
E-mail: suha.demokan@nobelbiocare.com

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