Henry Schein, largest LI public company, posts record sales for year

Henry Schein Inc., Long Island’s largest public company by revenue, posted on Wednesday a record $10.6 billion in net sales for 2015 and reported that gains in its medical products unit helped propel a year-over-year increase in fourth-quarter net income.

Net sales for the quarter ended Dec. 26 rose 5.5 percent to $2.9 billion despite a 4.8 percent handicap related to foreign currency exchange. Net income was $129.9 million, or $1.56 per diluted share. That result includes restructuring costs of $12.4 million, or 11 cents per diluted share.

Net sales for 2015 rose 2.5 percent from the prior year for the Melville-based distributor of dental, medical and animal health products.

“We believe we gained market share on an overall basis during the quarter both in North America and internationally, as we successfully continued our long-standing strategy of organic growth complemented by strategic acquisitions,” Stanley M. Bergman, chairman and chief executive of Henry Schein, said in a statement. “We are especially pleased with our worldwide internal sales growth in local currencies for the quarter of 6.5 percent, which represents the highest quarterly growth rate in eight years.”

Fourth-quarter medical sales increased 21.6 percent to $561.6 million, consisting of 22.2 percent growth in local currencies and a 0.6 percent decline related to foreign currency exchange.

In Henry Schein’s largest unit, dental sales rose 1.5 percent to $1.4 billion, consisting of 7.3 percent growth in local currencies and a 5.8 percent decline related to foreign currency exchange.

Piper Jaffray & Co. analyst Kevin Ellich said in a research note that Henry Schein’s fourth-quarter results beat Wall Street estimates, helped by internal sales growth of 6.5 percent and growth based on acquisitions of 3.8 percent.

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Henry Schein also affirmed earnings-per-share guidance for 2016 of $6.55 to $6.65 excluding restructuring costs, which are expected to range from 5 cents to 10 cents per diluted share.

In a late morning conference call after the earnings announcement, Bergman said the company’s acquisition announced Feb. 5 of a majority stake in Dental Cremer S.A., a dental supply distributor in Brazil, would build on Henry Schein’s existing Brazil business launched in 2014. The deal, whose financial terms were not disclosed, is expected to close by the second half of this year. Dental Cremer had 2015 sales of about $70 million, he said.

Bergman also said the company planned to launch global distribution of veterinary products from Jorgen Kruuse A/S, based in Langeskov, Denmark. In September, Henry Schein announced it had closed a deal for 85 percent of Kruuse, which distributes in the Nordic countries.

Shares of Henry Schein rose 6.2 percent Wednesday to close at $156.75.

By Ken Schachter

kenneth.schachter@newsday.comkschach

Ken Schachter covers corporate news, including technology and aerospace, and other business topics for Newsday. He has also worked at The Miami Herald and The Jerusalem Post.