DENTSPLY International, the dental devices manufacturer, has withdrawn its 2011 guidance following the earthquake and tsunami in Japan because one of its key suppliers is located in an evacuation zone.
The company has not named the supplier but says its business partner is the source of a product that provided roughly 9 per cent of DENTSPLY’s consolidated net sales for last year.
‘While our global business has started the year strong and we remain on track to meet our targets for 2011, the negative impact of the situation in Japan is difficult to quantify at this early stage,’ comments DENTSPLY’s chief executive and chairman Bret Wise, in a statement.
‘As such we are withdrawing our previously issued earnings guidance for 2011 until more information is available.’
NASDAQ-listed DENTSPLY has several suppliers in Japan, including two in the north east of the country, the area worst hit by the March 11 earthquake and subsequent tsunami. The company says it has been informed that all the employees at these suppliers appear to be safe and the facilities have not suffered serious damage.
The situation presents an immediate challenge to DENTSPLY’s new vice president of IR Derek Leckow, who joined the company on Monday this week.