Henry Schein to Cut 300 Jobs
In an effort to reduce costs in the current economic environment, Henry Schein of Melville, N.Y., will eliminate about 300 positions from its operations around the world, or about 2.5 percent of its workforce. The company will also close several smaller facilities.
“Given the recent changes in the economic climate, we expect that the markets Henry Schein serves will continue to grow, but at somewhat slower rates during these challenging economic times,” said Stanley Bergman, chairman and chief executive officer of the company. “While we remain confident in our ability to achieve our financial goals, we are taking these actions in light of our view that sales growth for 2009 may moderate somewhat from what we have experienced over the past several years.
“This is a difficult decision, but by taking these steps to reduce costs, Henry Schein will remain well positioned to help our customers operate more successful practices and deliver high quality of care to patients.”
Henry Schein reported net income of $68.43 million on revenue of $1.65 billion for its third quarter ended Sept. 27, compared to net income of $59.57 million on revenue of $1.51 billion.
Year to date, the company reported net income of $186.23 million on revenue of $4.82 billion, compared to net income of $136.9 million on revenue of $4.2 billion in the year-ago period.
MWI Sees 18% Revenue Increase
MWI Veterinary Supply Inc. of Meridian, Idaho, recently reported net income of $5.42 million on revenue of $224.77 million for its fourth quarter ended Sept. 30, compared to net income of $4.32 million on revenue of $190.15 million. This represents a net income increase of 25.4 percent and a revenue increase of 18.2 percent.
Internet sales to independent veterinary practices and producers grew about 43 percent for the quarter compared to the year-ago period and 39 percent year to date compared to the year-ago period.
Year to date, the company reported net income of $19.92 million on revenue of $831.36 million, compared to net income of $16.88 million on revenue of $710.11 million in the year-ago period. This represents a net income increase of 18 percent and a revenue increase of 17.1 percent.
Hill’s Sales Grow While Unit Volume Decreases
Colgate-Palmolive Co. reported in October that Hill’s Pet Nutrition sales grew 13 percent during the third quarter, ended Sept. 30, compared to the same time period in 2007.
At the same time, unit volume decreased 4 percent, pricing increased 15 percent and foreign exchange added 2 percent, the New York, N.Y.-based company reported.
“While Hill’s overall sales growth was strong, volume itself was negative , primarily impacted by the timing of price increase,” Bina Thompson, vice president of investor relations, told analysts in a conference call.
This year, Colgate made selling – price increases effective July 1, which drew volume out of the third quarter and into the second quarter. In 2007, however, the company took price increases effective Oct. 1, drawing volume out of the fourth quarter and into the third.
“The net effect was an usually high volume in the third quarter of last year and an unusually low volume in the third quarter of this year,” Thompson said. “Volume in the fourth quarter is expected to increase in the low single digits.
While Colgate has increased it prices to offset the steep rise in commodity costs, Thompson said the company has instituted a new program in the U.S. and Europe to “clearly communicate the value proposition of Hill’s Science Diet to pet owners.”
New products contributing to sales in the U.S. specialty channel include Science Diet Nature’s Best for cats and dogs, Science Diet Tender Chunks in Gravy cat food pouches and Science Diet Adult High Energy for dogs. Prescription Diet Hypo-Allergenic dog and cat treats contributed to sales in the U.S. veterinary channel.
New pet food products contributing to international sales include Science Plan Nature’s Best for cats and dogs, Prescription Diet Canine w/d, r/d and j/d Reduced Calorie and Prescription Diet Hypo-Allergenic dog treats.
Overall, Colgate reported a growth in sales of 13 percent to $ 3.9 billion its third-quarter and a rise in profit to $4.9 billion from $4.2 billion a year ago.