(RTTNews) - Patterson Companies, Inc. (PDCO: News ) on Thursday reported a 5% increase in profit for the second quarter from last year on higher sales that were boosted by acquisitions, in addition to cost-control measures in recent periods, including company-wide salary reductions enacted in the preceding first quarter.

On a per share basis, earnings for the quarter matched analysts' consensus estimate. Looking ahead, the dental and veterinary products distributor maintained its earnings outlook for fiscal year 2010.

Suppliers of products and equipment to dental practices have been hurt by a decline in sales of dental and medical equipment as dentists and doctors continued to defer purchase of equipment amid the economic slowdown. The recession has also led many patients to defer nonessential dental work, as a big chunk of dental spending is discretionary. Some of the companies have resorted to freezing wages as well as hiring to match the lower demand.

Second-Quarter Results

The St. Paul, Minnesota-based company's net income for the second quarter increased to $49.34 million or $0.41 per share from $46.90 million or $0.40 per share in the same period last year.

On average, ten analysts polled by Thomson Reuters expected the company to report earnings of $0.41 per share for the quarter. Analysts' estimates typically exclude special items.
Consolidated net sales for the quarter grew 7% to $814.95 million from $759.46 million in the year-ago quarter, and beat analysts' consensus revenue estimate of $788.52 million.

The company noted that acquisitions over the past one year accounted for a substantial portion of sales growth during the quarter, while the impact of foreign currency adjustments was minimal.

Net sales from consumable and printed products for the quarter rose to $538.65 million from $493.73 million last year. Equipment and software sales were $210.01 million, up from $200.97 million a year ago. Other sales increased to $66.30 million from $64.76 million in the same period last year.

Commenting on the results , James Wiltz, president and chief executive officer of Patterson Companies, said, "We are generally pleased with Patterson's second quarter performance as our businesses held up relatively well despite the ongoing impact of the recession. Within our Patterson Dental unit, the market for consumable supplies has been affected by high unemployment levels, but our sales of these products have remained generally stable during the first half of fiscal 2010."

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