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Henry Schein CEO Stanley Bergman on the company’s success in the pet health-care market and the impact of the health-care law and taxes on the compa...
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Henry -- provider of health care products and services reporting a strong second quarter today.
The company does business and dental medical and animal health and the growth in sales in its animal health division is actually the strongest.
Train now Stanley Bergman.
And -- chairman and CEO.
Thank you for joining us are -- and Sandra and have these lean back and people taking care of their pets before they're getting their key -- going to the doctor.
Some of the yes I wouldn't say that taking care of the -- before they go to the dentist -- the doctor about the animal health business has been particularly strong how do you explain that well first of all the markets quite -- but it also gaining market share.
I think we have a very good formula.
For helping -- veterinarians run very good clinics so that -- can provide very good health care does not specific trend.
In the actual sales of these things I thought of -- -- my head at -- market is quite strong but in the United States and in Europe today unanimous and in his.
And just on -- -- you you deal with a lot of different parts I'm wondering how that the new health care laws in effect that because.
There is a pay as you well know there's a medical equipment tax is due to kicking in as a result of payment for this -- that wasn't supposed to cost anything.
You have -- ended medical instruments house -- can affect you.
When you're asking two very good questions how -- impact us and how does the Texas impact that's festival.
The the health -- Reform is all about providing access.
To care so that -- so that the population doesn't have to view the emergency room.
-- as the pace for primary case.
That this is particularly the case with people face with a lack of insurance so where people have insurance.
And -- going to get insurance through Health Care Reform.
That lucky to go and see.
A position the private practice before turning to the hospital and acute care setting for primary -- services preventative care is a big part of that suit.
Of course who's gonna pay for this big debate.
-- Henry -- -- well positioned to service the office space practitioner.
And in particular the primary -- by the way the government wants you to pay for that's well either second on this medical -- cents.
I'm getting into politics but darn it I'm wondering whether or not it's gonna change your business behavior because sometimes it -- -- -- -- the the challenge is that there's going to be greater demand in the primary -- Citi.
The issue is who's going to pay for this tax.
So the Texas going to be -- on to products it's gonna be passed on to us and of course we have had to have to pass this -- the customers.
And the customers of the for the for the practitioner.
And the practitioners going to be caught between reimbursement -- pay more for products having said that they'll be a greater demand for services the primary case that.
But -- -- company like any other area near in the year but obligation is to shareholders in your job is to make money.
In your job is to forecast the future with so much uncertainty right now.
How do you behave how do you act going for well.
Have to that's under act very very conservatively and that's the way we've acted for flat and not good news for the economy.
Well when you say enough with the economy we will be a next.
Editor of in employees over the next year or so we expect that to be the case.
We I think that quite well as a company during the so -- Great Recession.
We added employees during that time we had growth.
But of course we have to be very modest in our expense control and we also have to be very careful.
To fight for every dollar of sales that.
Is available in the market place.
Again let's and by not burying the lead to delete is that you were doing quite well and animal division was what went up 14% -- that gradually in the North America and overall -- growth was in local currency about six and a half percent and -- cells and not an -- shiver up 10% we generate a lot of cash we didn't -- K net sales 2.2 billion dollars yes and it's not only companion animal.
Dental and physician sales Stanley Bergman -- in the cash Stanley good job Henry -- chairman and CEO good to see it.
