Henry Schein cuts annual profit forecast as cyber attack takes a toll

Nov 13 (Reuters) - Dental products distributor Henry Schein Inc cut its adjusted 2023 profit forecast on Monday after a cyber attack it reported in October disrupted its manufacturing and distribution divisions.

Shares of the company fell 3.3% in premarket trading to $61.94.

The Melville, New York-based company had said on Oct 15 that it had taken some of its systems offline after the cyber attack, contacted law enforcement authorities, and engaged outside experts to investigate the breach.

Henry Schein said it was reactivating its e-commerce platform, which it had closed after the attack, later in the week.

The company said it will be filing an insurance claim related to the incident, although the final resolution is subject to insurer approval, it said.

The medical products supplier now expects full-year adjusted profit between $4.43 and $4.71 per share, down from its prior forecast of $5.18 to $5.35 per share.

The forecast reflects an estimated hit of 55 cents to 75 cents per share from the cyber attack. The new forecast also assumes "softening macroeconomic conditions," the company said.

High interest rates and a weak consumer outlook have reduced demand for non-urgent procedures, including orthodontic treatment and higher-end dental restorative procedures.

The company reported sales of $3.16 billion in the third quarter versus LSEG estimates of $3.21 billion.

(Reporting by Pratik Jain and Manas Mishra in Bengaluru; Editing by Tasim Zahid)