Sales of medical and technology products spiked at Melville, N.Y.-based supplies distributor Henry Schein Inc., which reported positive income growth in the third quarter.
While the company's traditional dental and animal health strongholds saw 2% to 3% declines in sales—largely related to unfavorable currency rates—medical sales grew 24% to $597.2 million, consisting almost entirely of growth in local currencies. About 11% of the growth was due to acquisitions.
The distributor has seen particular success with large group practices and integrated delivery networks. That has consistently been boosted by Henry Schein's partnership with Cardinal Health, handling the company's physician office-focused business.
Sales of technology and value-added services were up 3% to $89.7 million.
Total sales across the company were $2.7 billion, up 2% from last year's third quarter. That led to $127.7 million in quarterly profit, up 11% from the same period the year before.
Expenses were relatively tame, though Henry Schein did report a $8.4 million restructuring charge related to previously announced initiatives to rationalize operations and cut costs. Restructuring costs were about $7.2 million last quarter.
This year's third quarter ended Sept. 26, while last year's third quarter ended Sept. 27.
Nine-month income was $349.1 million, up 5% from the year before and impacted by $22.5 million in restructuring costs. Total year-to-date sales were $7.8 million, up from $7.7 million the year before.
The company tightened its 2015 guidance, expecting $5.90 to $5.96 adjusted diluted earnings per share, narrowed slightly from $5.90 to $6. That would be growth of about 8% to 10% from 2014.
Henry Schein also introduced its 2016 financial guidance: The company expects $6.55 to $6.65 adjusted diluted earnings per share, about 10% to 12% higher than the midpoint of its new 2015 guidance.
