* H1 net profit 85 million Sfr vs forecast 72 million Sfr
* Says expects market to contract 5-10 percent in 2009
* Says to outperform in shrinking market
* Announces succession plan, effective from March 2010
* Shares down 0.4 percent
(Adds detail, background)
By Martin de Sa'Pinto and Oliver Hirt
ZURICH, Aug 11 (Reuters) - Swiss dental implant maker Straumann Holding AG reported a 16 percent drop in first-half net profit on Tuesday after patients postponed treatment in response to the global recession.
The world's second-largest maker of dental implants said it was confident of outperforming sector peers this year, although it saw the overall market for implant, restorative and regenerative dentistry shrinking by between 5 and 10 percent.
Net profit fell to 84 million Swiss francs ($77.6 million) in the first six months, well ahead of the average forecast of 72 million in a Reuters poll.
Straumann shares were down 0.4 percent at 235.10 Swiss francs at 0727 GMT compared with a 0.2 percent weaker DJ Stoxx European healthcare index.
Vontobel analyst Christoph Gubler said in a research note Straumann had a "lousy market but well-protected margins", but while the company was gaining market share, its equities were richly priced when compared with others in the sector.
"Although there is little sign of a sustained market recovery yet, we have continued to win new customers across all regions and have outpaced our main competitors," said Straumann Chief Executive Gilbert Achermann in a statement.
In an interview with Reuters, Achermann added that the company does not plan any further job cuts following cuts made earlier in the year, but shorter working hours would be reintroduced in September after being lifted in July and August.
Acherman said he sees no further worsening of the market but was cautious about a recovery. He said he saw stable to slightly positive market trends in 2010 and a single to low double-digit percentage growth in 2011.
The company also announced a succession plan that would come into effect after the shareholder meeting in March 2010.
Achermann will, provided he is re-elected to the board of directors, succeed Rudolf Maag as chairman, while Chief Financial Officer Beat Spalinger will replace Achermann in the chief executive role.
Straumann's revenue was 384 million francs in the first half, a 3.3 percent decline on the same period in 2008 after stripping out currency effects and below forecasts for 394 million francs.
Straumann has suffered less during the recession so far than other dental implant producers thanks to its stronger focus on less costly smaller-case treatments. Achermann said the company is now only slightly behind global market leader, Nobel Biocare , and expects to gain further market share.
Nobel Biocare reports second-quarter earnings on Wednesday. (Editing by David Holmes) ($1=1.082 Swiss Franc)