Henry Schein cuts outlook, plans layoffs

MELVILLE, N.Y. - Medical-products provider Henry Schein Inc. cut its 2008 profit outlook Wednesday as it plans layoffs and facility closings amid a weaker sales market.

The company said it expects profit of $2.94 to $2.96 per share for all of this year, down from prior guidance of $2.93 to $3 per share. Analysts polled by Thomson Reuters expect profit of $2.97.

For 2009, it estimates profit at between $3.27 and $3.36 per share. Analysts anticipate earnings of $3.39 per share.

The lowered guidance for this year comes as the company reports third-quarter profit and revenue inline with Wall Street expectations, but warned of slowing sales.

It will cut 300 jobs, or 2.5 percent of its work force worldwide and close several small facilities. The company said it expects to record costs associated with the move of between $22 million and $25 million in the fourth quarter. When complete, the company expects to save between $24 million and $27 million.

"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 care to patients," said Chairman and Chief Executive Stanley M. Bergman, in a statement.

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