Dentsply International Inc. Q3 2008 Earnings Conference Call Transcript

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2008-10-29 13:31:12.0

Tags: Chairman, Settlement, Analyst, Call Transcript, Earnings, DENTSPLY International Inc., Litigation, Corporate Law, Financial Accounting, Business Operations, Finance, Seeking Alpha, Chairman, Settlement, Analyst, Call Transcript, Earnings, DENTSPLY International Inc., Litigation, Corporate Law, Financial Accounting, Business Operations, Finance, Seeking Alpha

Question-and-Answer Session

Thank you very much. Ladies and gentlemen, today's question and answer session will be conducted electronically. [Operator Instructions]. Our first question will come from Eric Lowe [ph] of Merrill Lynch, please go ahead.

Unidentified Analyst

Good morning, guys.

Bret W. Wise - Chairman, President and Chief Executive Officer

Good morning, Eric.

Unidentified Analyst

I want to talk a little bit about Q4 and perhaps even 2009. I know you guys aren't giving guidance right now. But if organic growth were to slow faster than expected, how quickly do you think you guys could realign the cost structure to maintain profitability?

Bret W. Wise - Chairman, President and Chief Executive Officer

Well, history has shown we can adapt pretty quickly. I must say that what's happened in the last 30 days in the financial markets has been extraordinary, and we would not have anticipated that. So... and as well as the currency market. So, things are moving rapidly but past experience would tell us we can adjust reasonably quicklier and to preserve earnings power of the company.

The one cavy I would have on that is the currency movements which Bill described which are a little hard to adjust to as fast as they have moved.

Unidentified Analyst

Would the focus be on top-line growth next year or would it be on bottom line profit body and bottom line earnings growth?

Bret W. Wise - Chairman, President and Chief Executive Officer

Well, when we do our call in February, early February we'll give you our guidance for 2009. Obviously, at that point, we'll have a much better view of the market that we are going to participate in next year. And I think it is probably premature to try to set forth goals for next year at this point.

Unidentified Analyst

You guys had a large restructuring charge in Q3 about a little over $18 million. What was that related to, specifically?

Bret W. Wise - Chairman, President and Chief Executive Officer

Well, I think as Bill commented, that was primarily the settlement of two law suits that we had that related to the anti-trust matter that first arose in the early 90s.

Unidentified Analyst

Okay. So, it's all settlement charges as opposed to cost reductions from SG&A or from the business?

Bret W. Wise - Chairman, President and Chief Executive Officer

It was primarily those settlements.

Unidentified Analyst

Okay, great. And I know you guys were investing in additional sales people in the quarter. Can you comment on what type of impact that had specifically on SG&A this quarter? How many basis points was it about?

 

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