Dental implant maker Nobel Biocare Holding AG (NOBN.VX) Wednesday reported a better-than-expected second-quarter net profit on lower restructuring costs, but said its market remains challenging.

Nobel failed to give a quantitative guidance for 2009.

It said net profit for the three months to June 30 rose to EUR28.2 million from EUR24.3 million a year earlier, beating analysts' estimates of a drop to EUR21.86 million. The figure includes restructuring costs of EUR5.8 million, while most analysts had penciled in costs of around EUR10 million.

The Zurich-based maker of implants, crowns and bridges said sales for the period fell 8.7% to EUR153.5 million, after EUR168.20 million, while the 10 analysts polled by Dow Jones had called for sales of EUR158.68 million.

Nobel Biocare shares have gained around 24% year-to-date driven by recent M&A speculation and hopes the company will benefit from its restructuring efforts once demand for its products picks up again.

Its shares closed Tuesday at EUR26.50.

Straumann and Nobel Biocare rivals Zimmer Holdings Inc. (ZMH) and Biomet Inc. (BMET) have already reported one of their weakest quarters, prompting analysts to take a more cautious stance on the sector as customers remain hesitant to undergo big-ticket treatments, such as bridges and implants, during recession.

Company Web site: www.nobelbiocare.com; www.straumann.com

-By Julia Mengewein, Dow Jones Newswires; +41 43 443 80 45; julia.mengewein@dowjones.com