Dental implants maker Straumann Holding AG (STMN.EB) Tuesday reported a better-than-expected 16% drop in second-quarter net profit due to good cost management and lower taxes, and said it would make several changes to its management board in March next year.

Straumann said its current Chief Executive Gilbert Achermann will become Chairman of the Board, subject to shareholder approval, succeeding Rudolf Maag who will retire at the annual general meeting in March 2010.

Current Chief Financial Officer Beat Spalinger will then take the position of CEO.

The move is to "ensure continuity and sustainability" in what the company calls "uncertain" times and amid weak customer demand.

The Basel, Switzerland-based company said net profit for the second half came in at CHF84.6 million ($78.3 million), after CHF100.5 million a year ago, and beating analysts estimates of CHF74.62 million.

Lower tax payments than in the prior-year period and cost measures somewhat cushioned the impact of weak demand, low capacity utilization and unfavorable currency movements on profitability in the first half of 2009, Straumann said.

For 2009, the company said the dental market should shrink to between 5% to 10%, but still expects to outperform the market this year in terms of sales development.

Straumann also still expects an operating margin of more than 20% for 2009, "depending on currency developments."

Sales in the first half fell 6.9% to CHF384.1 million, coming in below analyst estimates of CHF393 million.

Year-to-date, Straumann shares have gained 27% as investors are hoping for a recovery of the market for dental implants. They closed Monday at CHF236.

This compares to a 29% rise in shares of Zurich-based rival Nobel Biocare Holding AG (NOBN.VX) which will report second-quarter figures Wednesday.

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.straumann.com; www.nobel-biocare.com

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