DENTSPLY 2010 net sales increase 2.9% to record $2.221 billion

-- Full year net sales were a record $2.221 billion and increased 2.9% or 2.1%, excluding precious metal content
-- Full year Fully Diluted Earnings Per Share on a GAAP basis were $1.82 per share and were a record $1.90 on a non-GAAP fully diluted basis and increased 3.3% for the year

DENTSPLY International Inc. (Nasdaq:XRAY) today announced sales and earnings for the three months and year ended December 31, 2010.

Fourth Quarter Results

Net sales in the fourth quarter of 2010 were $568.2 million, essentially the same level as reported in the fourth quarter of 2009. Net sales, excluding precious metal content, increased 0.3% in total, and 2.5% on a constant currency basis in the fourth quarter of 2010. However, sales were negatively impacted by foreign exchange translation resulting from a generally stronger U.S. dollar during the quarter when compared to the same period last year.

Net income attributable to DENTSPLY International for the fourth quarter of 2010 was $67.8 million, or $0.47 per diluted share, compared to $74.8 million, or $0.50 per diluted share, in the fourth quarter of 2009. Net income attributable to DENTSPLY International in the fourth quarter of 2010 included tax adjustments, charges for restructuring and other costs, impacts related to recent acquisitions and investments that on a net basis decreased diluted earnings per share by $0.04. Net income attributable to DENTSPLY International in 2009 included positive tax adjustments, charges for restructuring, costs related to recent acquisitions and other related items that on a net basis increased diluted earnings per share by $0.02.

Adjusted earnings (excluding tax adjustments, charges for restructuring, costs related to recent acquisitions and other related items), which constitute a non-GAAP measure, were $73.7 million, or $0.51 per diluted share, in the fourth quarter of 2010. This compares to $72.6 million, or $0.48 per diluted share, in the fourth quarter of 2009, or an increase in adjusted earnings per diluted share of 6.3% for the quarter. A reconciliation of this non-GAAP measure to earnings per share on a GAAP basis is provided in the attached table.

Full Year Results

Net sales for the full year were $2,221.0 million in 2010, compared to $2,159.4 million in 2009. Net sales, excluding precious metal content, were $2,031.8 million, an increase of 2.1% compared to 2009. Net sales, excluding precious metal content, increased 2.6% in 2010 in constant currency, including acquisitions. The Company experienced positive constant currency growth for dental consumable products and dental specialty products for the year.

Net income attributable to DENTSPLY International for 2010 was $265.7 million, or $1.82 per diluted share, compared to $274.3 million, or $1.83 per diluted share in 2009. Net income for the full year of 2010 included a net negative impact from tax adjustments, charges for restructuring, costs related to recent acquisitions and other items, which reduced earnings per diluted share by $0.08, and 2009 included tax adjustments, charges for restructuring, costs related to recent acquisitions and other related items that, on a net basis, reduced earnings per diluted share by $0.01 for the year. 

For comparability analysis, net income attributable to DENTSPLY International on a non-GAAP basis was $277.9 million or $1.90 per diluted share for 2010. This compares with $275.7 million, or $1.84 per diluted share, in 2009, an increase of 3.3%. A reconciliation of this non-GAAP measure to earnings per share on a GAAP basis is provided in the attached table.

2011 Outlook

Bret Wise, Chairman and Chief Executive Officer, stated, "Moving into 2011, we are fortunate to have a number of new and exciting product launches planned. This, along with a gradually improving dental market, should allow us to improve both our growth rates in sales and earnings for the year. We are cautiously optimistic based on this outlook along with the current exchange rates, and are initiating our 2011 earnings guidance in the range of $2.00 to $2.08 per diluted share."