Feb. 25--Dental and medical equipment supplier Henry Schein Inc., Long Island's third-largest company in terms of sales, said yesterday that net income fell 27 percent in the fourth quarter, and sales were down too, the result of a weakening economy.

Henry Schein, one of the world's largest dental and medical equipment suppliers, also lowered its 2009 earnings forecast, citing "worsening economic conditions, our expectation for continued economic weakness and the strengthening of the U.S. dollar."

Melville-based Henry Schein Inc. said that fourth-quarter net income fell to $56.9 million, or 64 cents a share, compared with profits of $78.3 million, or 85 cents a share, in the same period a year ago.

Sales dropped 7.5 percent in the latest quarter, to $1.6 billion.

The company said that dental sales declined 2.4 percent.

"Our fourth quarter dental group results reflect the current economic environment and uncertainty, particularly impacting overall demand for dental equipment," Henry Schein chief executive Stanley Bergman said in a statement.

The company said, however, excluding restructuring costs, operating margins expanded 8 percent in the quarter.

In a Webcast, Bergman told analysts Henry Schein's "business is solid" but slowing.

"But obviously, we don't know where the economy is going, so we're being a little bit more conservative than in the past."

Medical group sales declined 12.6 percent, and international group sales were down 10.8 percent.

Technology and value-added services group sales rose 6.5 percent.

In November, Henry Schein said it would eliminate about 300 jobs around the world. Henry Schein said the costs of the reductions were $23.2 million in the fourth quarter. In lowering its guidance, Henry Schein said earnings will be $3.11 to $3.26 a share, below a previous estimate of $3.27 to $3.36.

Company shares closed $2.54 higher yesterday at $38.57.

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