Fresenius Medical Care News - Quarterly results http://www.freseniusmedicalcare.com en_EN Wed, 18 Jul 2018 11:37:53 +0200 Wed, 18 Jul 2018 11:37:53 +0200 TYPO3 EXT:news news-1105 Thu, 27 Oct 2016 00:00:00 +0200 Fresenius Medical Care reports strong third quarter and confirms full year guidance /en/media/news/details/detail/News/fresenius-medical-care-reports-strong-third-quarter-and-confirms-full-year-guidance/ Investor News Financials Financials Press Release

  • Group revenue +9% (+9% at constant currency), driven by a strong performance in Health Care services
  • EBIT growth in line with revenue growth, supported by very good development in Latin America and Asia-Pacific
  • Significant net income growth of 27% (+17% excluding special items1)
  • Care Coordination with positive growth momentum (revenue +29%) and improved sequential margin of 5% (+60 basis points) in line with expectations
  • Full year 2016 guidance confirmed

Key figures – third quarter and first nine months 2016:

$ million Q3 2016 Q3 2015 Growth
yoy
9m 2016 9m 2015 Growth
yoy
Net revenue 4,598 4,231 +9% 13,224 12,390 +7%
Operating income (EBIT) 670 614 +9% 1,851 1,665 +11%
Net income2typo3/#_ftn2 333 262 +27% 855 713 +20%
Net income (excl. special items)1,2 333 284 +17% 855 735 +16%
Basic earnings per share (in $) 1.09 0.86 +26% 2.80 2.34 +19%

 

“We are very pleased with our performance in the third quarter of 2016, which is the result of a strong execution in all regions, the success of our Global Efficiency Program as well as further expansion of our global footprint,” said Rice Powell, Chief Executive Officer of Fresenius Medical Care. “Care Coordination services maintain excellent growth momentum which will help us to extend our range of health care services even further. Based on our strong result for the third quarter, we hereby confirm our guidance for the full-year 2016.”

Revenue & earnings

Net revenue for the third quarter improved by 9% and reached $4,598 million (+9% at constant currency), mainly driven by a strong performance in Health Care services. Contributing revenues of $3,734 (+10%), Health Care services was largely supported by an improvement in US revenue per treatment (+$3) as well as a strong organic growth. Dialysis products revenue increased by 4% to $864 million in the third quarter, mainly driven by higher sales of machines, dialyzers and products for acute care.

Net revenue in the first nine months of 2016 increased by 7% (Health Care services revenue +8%/+9% at constant currency; dialysis products revenue +2%/+4% at constant currency).

In the third quarter, operating income (EBIT) increased by 9% to $670 million, in line with revenue growth. The operating income margin increased by 10 basis points to 14.6%, underlining a stable earnings quality. The increase in EBIT margin was mainly driven by the positive development in Latin America after the divestiture of our dialysis service business in Venezuela in the previous year’s third quarter as well as a strong performance in Asia-Pacific. The EBIT margin in North America was impacted by higher personnel expenses for dialysis services, partially offset by lower costs for health care supplies and a higher volume with commercial payers.

For the first nine months of 2016, operating income (EBIT) increased by 11% to $1,851 million.

Net interest expense in the third quarter remained at the previous year’s level ($100 million). For the first nine months of 2016, net interest expense increased by 1% to $308 million, mainly due to lower interest income as a result of the repayment of interest bearing notes receivables in the fourth quarter of 2015, partially offset by a lower debt level.

Income tax expense decreased by 2% to $164 million in the third quarter. This translates into an effective tax rate of 28.8%, a decrease of 400 basis points compared to the third quarter of 2015 (32.8%). This decrease was mainly driven by a lower tax expense as a result of released tax liabilities in the third quarter of 2016 due to tax audit settlements with tax authorities, as well as a favorable impact from the prior-year non-tax deductible loss from the divestiture of our dialysis service business in Venezuela.

For the first nine months of 2016, income tax expense increased to $471 million, translating into an effective tax rate of 30.5% (-190 basis points).

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increased by 27% to $333 million in the third quarter. Excluding the 2015 impacts of (i) the after tax loss, $26.9 million, from the divestment of our dialysis service business in Venezuela and (ii) the realized portion of the after tax gain, $4.8 million, from the sale of our European marketing rights for certain renal pharmaceuticals to our joint venture, Vifor Fresenius Medical Care Renal Pharma, net income increased from $284 million to $333 million (+17%) in the third quarter. Based on approximately 306.0 million shares (weighted average number of shares outstanding), basic earnings per share (EPS) increased from $0.86 to $1.09 (+26%); EPS excluding special items increased from $0.93 to $1.09 (+17%).

For the first nine months of 2016, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increased by 20% to $855 million.

Segment development

In the third quarter, North America revenue increased by 10% to $3,300 million (72% of total revenue). Health Care services revenue grew by 10% to $3,068 million, of which Care Coordination contributed $618 million (+29%), supported by significant organic revenue growth of 24%. Dialysis care revenue contributed $2,450 million (+6%), driven by increased revenue per treatment and higher volumes of dialysis treatments with commercial payers. Dialysis products revenue grew by 7% to $232 million, due to increased product sales (especially machines and dialyzers). Operating income in North America came in at $536 million (+4%). The operating income margin of 16.2% was in line with the second quarter of 2016, but weaker than the previous year’s third quarter (-90 basis points). This decline was mainly attributable to higher personnel expenses, a cost impact related to the vesting of long term incentive plan grants and growth in lower-margin Care Coordination, partially offset by lower cost for health care supplies. The operating income margin in Care Coordination came in at 5.0%, an increase of 60 basis points over the second quarter 2016, but below the previous year’s third quarter margin of 6.8%.

For the first nine months of 2016, North America revenue increased by 9% to $9,512 million. Operating income increased by 16% to $1,486 million.

EMEA revenue increased by 2% to $675 million in the third quarter of 2016 (+4% at constant currency). Health Care services revenue for the EMEA segment increased by 8% (+10% at constant currency) to $335 million. This was mainly the result of contributions from acquisitions (8%), partially offset by the negative effect of exchange rate fluctuations (2%). Dialysis treatments increased by 9% in the third quarter. Dialysis products revenue decreased by 3% (-1% at constant currency) to $340 million. The decrease was driven by lower sales of renal drugs (whose marketing rights were sold in 2015) and dialyzers, partially offset by higher sales of machines and bloodlines. Operating income in the EMEA segment decreased by 4% to $125 million in the third quarter due to the prior-year impact from the gain resulting from the sale of European marketing rights for certain renal pharmaceuticals, an unfavorable impact from manufacturing costs as well as higher bad debt expense. This was partially offset by favorable foreign exchange effects. The operating income margin decreased to 18.5% (-120 basis points).

For the first nine months of 2016, EMEA revenue increased by 1% to $1,982 million (+4% at constant currency) and operating income decreased by 3% to $395 million.

Asia-Pacific revenue grew by 13% (+8% at constant currency) to $427 million in the third quarter. The region recorded $192 million in Health Care services revenue, based on an increase of 5% in dialysis treatments. With an 11% growth in revenue to $235 million (+12% at constant currency), the product business showed an excellent sales performance across the entire dialysis products range. Operating income showed a significant increase (+25%) to $85 million. The operating income margin increased substantially to 19.8% (+190 basis points). This was primarily driven by the positive impact from overall business growth and favorable foreign exchange effects.

For the first nine months of 2016, Asia-Pacific revenue grew by 8% to $1,198 million (+8% at constant currency) and operating income increased by 3% to $225 million.

Latin America delivered revenue of $192 million, an increase of 9% and an impressive improvement of 27% at constant currency. Health Care services revenue increased by 6% to $139 million (+31% at constant currency) as a result of higher organic revenue per treatment primarily driven by a retrospective reimbursement rate increase, contributions from acquisitions and growth in same market treatments, partially offset by the effect of the divested dialysis care business in Venezuela. Dialysis treatments increased by 1% in the third quarter. Dialysis products revenue increased by 19% to $53 million (+18% at constant currency), as a result of higher sales of dialyzers, concentrates and bloodlines. Operating income came in at $20 million supported by the impact from higher revenue in the region, partially offset by unfavorable foreign currency effects and higher costs mainly related to inflation. The operating margin increased to 10.5%.

For the first nine months of 2016, Latin America revenue decreased by 10% to $520 million (+13% at constant currency) and operating income increased by 86% to $47 million.

Cash flow

In the third quarter of 2016, the company generated $439 million in net cash provided by operating activities, representing 9.5% of revenue ($579 million in the third quarter of 2015). The decrease was primarily attributable to a discretionary cash contribution of $100 million to Fresenius Medical Care’s pension plan assets in the United States. The number of DSO (days sales outstanding) came in at 72 days, an increase of 2 days compared to the second quarter of 2016.

In the first nine months of 2016, the company generated net cash provided by operating activities of $1,296 million, representing 9.8% of revenue.

Employees

As of September 30, 2016, Fresenius Medical Care had 108,851 employees (full-time equivalents) worldwide, compared to 102,591 employees at the end of September 2015. This increase of 6% was primarily attributable to our continued organic growth.

Recent events: Acquisition of Sandor Nephro Services in India

In September 2016, Fresenius Medical Care acquired 85% of equity interest in the Indian dialysis group Sandor Nephro Services from a group of investors. Established in 2011, Sandor Nephro Services is India’s second largest dialysis care provider. Under the brand name “Sparsh Nephrocare” the company operates a network of more than 50 dialysis centers across the country. With the acquisition, Fresenius Medical Care has clearly strengthened its core business in one of the fastest growing economies of the world. Sandor Nephro Services is expected to generate revenue of around $3 million in full year 2016. Fresenius Medical Care expects the investment to be accretive in 2017 on earnings after tax.

Outlook 2016 confirmed

Based on the positive business development in the first nine months 2016, Fresenius Medical Care confirms its full year outlook 2016. The company expects a currency-adjusted revenue growth between +7% and +10% for 2016. Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to increase by +15% to +20% over the previous year.

 

 ***

Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases, of which around 2.8 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,579 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 306,366 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with the core business, the company focuses on expanding the range of additional medical services in the field of care coordination.

Disclaimer

This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

 

1 2015 basis adjusted for special items (net income effect): divestiture of dialysis service business in Venezuela (-$27m), sale of European marketing rights for certain renal pharmaceuticals (+$5m)
2 Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA

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news-1041 Mon, 01 Aug 2016 00:00:00 +0200 Fresenius Medical Care posts accelerated earnings growth in the 2nd quarter /en/media/news/details/detail/News/fresenius-medical-care-posts-accelerated-earnings-growth-in-the-2nd-quarter/ Investor News Financials Financials Press Release

  • Group revenue +5% (+7% at constant currency), driven by very good results in health care services
  • Considerable net income growth of 22%, supported by lower costs for health care supplies and Global Efficiency Program
  • Strong operating performance in North America: revenue +8%, operating income (EBIT) +20%
  • Care Coordination maintains significant revenue growth (+21%) and continues to invest in infrastructure
  • Fresenius Medical Care on track to achieve full year guidance

 

Key figures – second quarter/first half 2016:

    Second quarter Growth yoy First half Growth yoy
Net revenue $4,420 million +5% $8,626 million +6%
Operating income (EBIT) $641 million +17% $1,181 million +12%
Net income1typo3/#_ftn1 $294 million +22% $522 million +16%
Basic earnings per share $0.96 +22% $1.71 +15%

 

“Following a solid start to the year, we have accelerated our growth in the second quarter”, said Rice Powell, Chief Executive Officer of Fresenius Medical Care. “Our strong earnings growth demonstrates our ability to further improve our cost base and the success of our Global Efficiency Program. I am extremely pleased with our excellent operational performance in the core dialysis services business. Care Coordination maintains strong topline growth and we continue to invest in the infrastructure of this business. Despite unfavorable foreign currency developments and continuous cost pressure, we are confident we will achieve our full year guidance.”

Revenue & earnings

Net revenue for the second quarter improved by 5% and reached $4,420 million (+7% at constant currency), driven by very good health care services revenue growth in North America. Health care services revenue increased by 7% to $3,571 million, mainly due to organic revenue growth. Dialysis products revenue decreased by 1% to $849 million in the second quarter, impacted by negative currency developments (+2% at constant currency) and compared to an exceptionally strong performance in the previous year’s second quarter. The revenue increase at constant exchange rates was driven by higher sales of dialyzers and machines.

Net revenue in the first half of 2016 increased by 6% (health care services revenue +7%/+9% at constant currency; dialysis products revenue +1%/+4% at constant currency).

In the second quarter, operating income (EBIT) increased by 17% to $641 million. The operating income margin increased to 14.5%, due to strong operating performance across all segments. The increase in North America was supported by lower costs for health care supplies and a favorable impact from higher volume with commercial payors. This was partially offset by higher personnel expenses related to dialysis services in the North America segment. The increase in the Asia-Pacific segment was driven by favorable exchange rate effects and higher business growth.

For the first half of 2016, operating income (EBIT) increased by 12% to $1,181 million.

Net interest expense in the second quarter remained at the previous year’s level ($102 million). For the first half of 2016, net interest expense increased by 2% to $208 million.

Income tax expense increased to $169 million in the second quarter. This translates into an effective tax rate of 31.3%, an increase of 90 basis points compared to Q2 2015 (30.4%). This increase was mainly driven by a relative to income before taxes lower increase of tax-free income attributable to noncontrolling interests.

For the first half of 2016, tax expense increased to $306 million, translating into an effective tax rate of 31.5% (-70 basis points).

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increased by 22% to $294 million in the second quarter, mainly driven by the strong performance of the North America segment. Based on approximately 305.5 million shares (weighted average number of shares outstanding), basic earnings per share (EPS) increased accordingly to $0.96 (+22%), compared to $0.79 in the previous year’s second quarter.

For the first half of 2016, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increasead by 16% to $522 million.

Segment development

In the second quarter, North America revenue increased by 8% to $3,168 million (72% of total revenue). Health care services revenue grew by 8% to $2,938 million, of which Care Coordination contributed $564 million (+21%), supported by considerable organic revenue growth of 17%. Dialysis care revenue contributed $2,374 million (+5%), driven by growth in dialysis treatments and increases in revenue per treatment. Dialysis products revenue grew by 2% to $230 million, due to increased product sales (especially machines and dialyzers). Operating income in North America came in at $513 million (+20%). The substantially improved operating income margin of 16.2% (+170 basis points) was attributable to lower costs for health care supplies, a favorable impact from commercial payors, lower legal expenses and increased income from equity method investees. This was partially offset by higher personnel expenses related to dialysis services and a lower margin in Care Coordination. The margin decrease in Care Coordination was driven by increased costs for hospitalist and intensivist services due to further infrastructure development, partially offset by one-time gains from the endovascular and cardiovascular services business.

For the first half of 2016, North America revenue increased by 9% to $6,212 million. Operating income increased by 24% to $949 million.

EMEA revenue increased by 1% to $676 million in the second quarter of 2016 (+3% at constant currency). Health care services revenue for the EMEA segment increased by 7% (+9% at constant curreny) to $331 million. This was the result of contributions from acquisitions (7%) and organic revenue growth (3%), partially offset by the negative effect of exchange rate fluctuations (2%) and the effect of closed or sold clinics (1%). Dialysis treatments increased by 9% in the second quarter. Dialysis products revenue decreased by 4% (-3% at constant currency) to $345 million. The decrease was driven by lower sales of dialyzers, machines, renal pharmaceuticals and bloodlines, partially offset by higher sales of products for acute care treatments and peritoneal dialysis products. Operating income in the EMEA segment increased by 4% to $139 million in the second quarter, due to favorable foreign exchange effects and a positive impact from manufacturing, driven by higher volumes and production efficiencies. The operating income margin increased to 20.6% (+50 basis points).

For the first half of 2016, EMEA revenue increased by 1% to $1,307 million and operating income decreased by 2% to $269 million.

Asia-Pacific revenue grew by 5% (+6% at constant currency) to $397 million in the second quarter. The region recorded $177 million in health care services revenue, based on an increase of 4% in dialysis treatments. With a 4% growth in revenue to $220 million (+9% at constant currency), the product business showed a very good sales performance across the entire dialysis products range. Operating income showed a strong increase (+12%) to $75 million. The operating income margin increased to 18.9% (+110 basis points). This was driven by favorable foreign currency effects and the positive underlying business performance, in particular in China and India.

For the first half of 2016, Asia-Pacific revenue grew by 6% to $771 million (+8% at constant currency) and operating income decreased by 8% to $140 million.

Latin America delivered revenue of $175 million, a decrease of 14% and an improvement of 9% at constant currency. Health care services revenue decreased by 17% to $125 million (+9% at constant currency) as a result of negative foreign currency effects and the effect of closed or sold clinics (mainly in Venezuela). Dialysis treatments decreased accordingly by 7% in the second quarter. This was partially offset by the strong organic revenue growth of 19%. Dialysis products revenue decreased by 5% to $50 million (+8% at constant currency). The 8% increase at constant curreny was driven by higher sales of dialyzers, hemodialysis solutions and concentrates, machines and bloodlines, partially offset by lower sales of peritoneal dialysis products. Operating income came in at $16 million (+4%) with the operating margin increasing to 9.3%. The margin increase was primarily driven by favorable foreign exchange effects.

For the first half of 2016, Latin America revenue decreased by 18% to $328 million (+7% at constant currency) and operating income decreased by 19% to $27 million.

Cash flow

In the second quarter of 2016, the company generated $678 million in net cash provided by operating activities, representing 15.3% of revenue ($385 million in Q2 2015). The strong increase was primarily driven by an adjustment during the first quarter which impacted invoicing and was largely resolved during the second quarter. In addition, the timing of working capital items and higher earnings had a positive effect on cash flow. These effects were partially offset by higher income tax payments. The number of DSO (days sales outstanding) came in at 70 days, a reduction of 4 days compared to the first quarter of 2016.

In the first half of 2016, the company generated net cash provided by operating activities of $857 million, representing 9.9% of revenue.

Employees

As of June 30, 2016, Fresenius Medical Care had 106,556 employees (full-time equivalents) worldwide, compared to 102,893 employees at the end of June 2015. This increase was attributable to our continued organic growth.

Recent events: 6008 CAREsystem

In May 2016, Fresenius Medical Care launched the 6008 CAREsystem, a new innovative hemodialysis therapy system enabling better care for chronic patients. To enable significantly reduced complexity in therapy delivery, the system uses a new, all-in-one disposable with completely pre-connected bloodlines for all treatment modalities. More than 150,000 treatments have already been performed with the system.

Outlook 2016 confirmed

Based on the positive business development in the first half of 2016, Fresenius Medical Care confirms its full year outlook 2016. The company expects a currency-adjusted revenue growth between +7% and +10% for 2016. Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to increase by +15% to +20% over the previous year.

 

Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases, of which around 2.8 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,504 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 301,548 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with the core business, the company focuses on expanding the range of additional medical services in the field of care coordination.

Disclaimer

This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

1 Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA

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news-991 Tue, 03 May 2016 00:00:00 +0200 Fresenius Medical Care reports strong start to the year 2016 /en/media/news/details/detail/News/fresenius-medical-care-reports-strong-start-to-the-year-2016/ Investor News Financials Financials Press Release

  • Group revenue increased +6%, strong net income growth of +9%
  • North America: revenue +10%, significant increase of operating income (EBIT) +28%
  • Segments outside North America strongly influenced by currency
  • Care Coordination with strong organic growth of +17%
  • First quarter performance in line to achieve full year guidance

 First quarter 2016 key figures:

Net revenue $4,205 million +6%
Operating income (EBIT) $540 million +7%
Net income1typo3/#_ftn1 $228 million  +9%
Basic earnings per share $0.75  +8%

 

Rice Powell, Chief Executive Officer of Fresenius Medical Care stated: “We had a strong start to the year. Our core dialysis service and products business showed a very strong underlying growth globally. While our businesses outside the United States were largely influenced by currency, the North American market delivered a very satisfying result. In addition, Care Coordination continues to show strong topline growth. We are investing in our future growth in this area, but also expect the profitability to improve again in the course of the year. We are on track to achieve our full year guidance for 2016.”

 

Revenue & Earnings

Net revenue for the company improved by 6% and reached $4,205 million (+9% at constant currency), largely driven by strong Net Health Care revenue growth of +10% in North America. Net Health Care revenue contributed a 7% increase to $3,414 million, while product revenue grew 2% (6% at constant currency) to $791 million. Solid organic growth rates of 7% for Net Health Care as well as for the products business demonstrated a solid business performance. The development was primarily driven by higher revenue per treatment and more dialysis days.

Total operating income (EBIT) increased by 7% to $540 million (margin of 12.8%). This increase was driven by lower costs for Health Care supplies, a favorable impact from higher volume with commercial payors and further efficiency gains partially offset by higher personnel expense related to dialysis services in the North America segment, unfavourable foreign exchange effects in all segments outside North America as well as higher legal and consulting expenses.

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the first quarter of 2016 was $228 million, a strong increase of 9% compared to $210 million of last year’s first quarter. Based on a number of approximately 305.3 million shares (weighted average number of shares outstanding), basic earnings per share (EPS) for the first three months 2016 amounted to $0.75, compared to $0.69 for the first quarter of 2015.

Segment development

North America revenue increased by 10% to $3,044 million (72% of total revenue). Dialysis business grew by 8%, Care Coordination increased by 20%. The continued progress in Care Coordination was driven by organic growth of +17% and reached $522 million in revenues. Dialysis growth was positively influenced by a higher volume with commercial payors, two more dialysis days and increased product sales (especially machines and dialyzers).

The substantially improved dialysis operating income margin of 16.9% (+300 basis points compared to Q1 2015) was due to lower costs from Health Care supplies, a favourable impact from commercial payors as well as decreased legal expenses. Total operating income (EBIT) for the quarter under review was $436 million, an impressive increase of 28%. Total operating income margin improved to 14.3%.

EMEA revenue increased by 5% to $631 million at constant currency. Positive business movements from an increase in dialysis treatments were offset by the negative currency impact, especially due to the strong US Dollar. Also product revenue came in with a 5% plus at constant currency ($330 million) due to increased sales of bloodlines, products for acute care treatments and hemodialysis solutions and concentrates. Operating income of $130 million in Q1 2016 was negatively impacted mainly due to the weakening of various local currencies.

Asia Pacific grew by 10% at constant currency to $374 million. The region recorded $168 million in Net Health Care revenue, based on an increase of 6% in dialysis treatments. With a growth of +16% at constant currency to $206 million, the product business showed a very strong sales performance in dialysers, bloodlines, machines and peritoneal dialysis products. Operating income decreased to $65 million (-23%) and was impacted by unfavorable foreign exchange effects, increased costs related to further sales development and costs associated with changes in the Management Board.

Latin America delivered revenue of $153 million, an improvement of 5% at constant currency (-23% on a reported basis). In addition to the negative currency impact, the business was mainly influenced by clinics sold in Venezuela in 2015. Dialysis treatments decreased accordingly by 6%. Product revenue decreased by 4% at constant currency to $40 million. Operating income was at $11 million, compared to $18 million in Q1 2015. Operating income margin decreased to 7.1% in Q1 2016 from 9.0% in Q1 2015 mainly due to higher costs related to inflation, unfavorable foreign exchange effects and an unfavorable impact from manufacturing production costs, partially offset by the impact from prior year lower margin dialysis service business in Venezuela which was subsequently divested in the third quarter of 2015.

Net interest expense in Q1 2016 was $105 million compared to $102 million in the first quarter of 2015. The slight increase is based on a lower interest income as a result of the repayment of interest bearing notes receivables. Income tax expense was $138 million for the first quarter of 2016, which translates into an effective tax rate of 31.8%, substantially lower than in Q1 2015 (34.3%). This was primarily driven by increased tax-free income attributable to noncontrolling interest in the US and lower tax rates in other jurisdictions.

Cash flow

In the first quarter of 2016, the company generated $180 million in net cash provided by operating activities, representing 4% of revenue, compared to $447 million in last year’s Q1. The lower level was driven by an adjustment in invoicing within the quarter and the timing of cash payroll payments in the US. The number for DSO (days sales outstanding) increased accordingly to 74 days (71 days in Q1 2015). These timing effects will have no meaningful impact on the full year 2016.

Employees

As of March 31, 2016, Fresenius Medical Care had 104,687 employees (full-time equivalents) worldwide, compared to 101,543 employees at the end of March 2015. This increase was mainly attributable to our continued organic growth.

Outlook 2016 confirmed

Based on the positive Q1 business development, Fresenius Medical Care confirms its full year outlook 2016. The company expects a currency-adjusted revenue growth between +7% and +10% for 2016. Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to increase by +15% to +20% over the previous year.

 

 

Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects around 2.8 million individuals worldwide. Through its network of 3,432 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatments for 294,043 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products.

Disclaimer

This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

1attributable to shareholders of Fresenius Medical Care AG & Co. KGaA

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news-941 Wed, 24 Feb 2016 00:00:00 +0100 Fresenius Medical Care reports fourth quarter and full year 2015 results /en/media/news/details/detail/News/fresenius-medical-care-reports-fourth-quarter-and-full-year-2015-results/

Investor News                       Press Release

  • Targets for 2015 achieved: revenue + 11% constant currency, net income1,2+2%

  • 3% dividend increase to be proposed at the Annual General Meeting

  • Excellent organic growth and positive operating earnings development in North America

  • Strong organic growth dynamic in Care Coordination activities, still in investment mode

  • International performance furthermore impacted by currency fluctuations

  • Result pushed by Global Efficiency Program and lower costs for healthcare supplies

  • 2016 outlook in line with projection

 Fourth quarter 2015 key figures:

Net revenue $4,348 million +1% / +5%cc
Operating income (EBIT) $662 million 0%
Operating income (EBIT) excluding special items2 $704 million +5%
Net income1 $317 million -6%
Net income excluding special items1,2 $347 million +2%
Basic earnings per share $1.04 -6%

 
Full year 2015 key figures:

Net revenue $16,738 million +6% / +11%cc
Operating income (EBIT) $2,327 million +3%
Operating income (EBIT) excluding special items2 $2,388 million +5%
Net income1 $1,029 million -2%
Net income excluding special items1,2 $1,082 million +2%
Basic earnings per share $3.38 -2%


Dividend proposal:

Per share €0.80 +3%

cc = at constant currency rate

Rice Powell, Chief Executive Officer of Fresenius Medical Care stated: “Our commitment to our patients continues to produce substantial results. After investing heavily in new business activities, 2015 was a year that focused on operational excellence. Strong market dynamics in our core dialysis markets had been supported by new operating profitability levels. In 2016 we even want to accelerate the value creation for all our shareholders. We delivered on revenue, net income guidance for 2015 and confirm our targets for 2016: strong revenue growth combined with even higher net income growth.”

Fourth quarter 2015

Revenue

Net revenue for the fourth quarter of 2015 increased slightly by 1% to $4,348 million (+5% at constant currency) as compared to the fourth quarter of 2014. Organic revenue growth was 5%. Net Health Care revenue grew by 4% to $3,462 million (+7% at constant currency). The organic growth rate was 6%. After a very strong first half in the product business, the dialysis product revenue was down by 11% to $886 million. The company generated more than 70% of the product business in the three International segments which implied a strong currency headwind. On a constant currency basis, dialysis product revenue decreased by 2%.

North America revenue for the fourth quarter of 2015 increased by 7% to $3,084 million. Organic revenue growth was 5%. Net Health Care revenue contributed $2,845 million (+8% on a year on year basis), the product business $239 million (+1% on a year on year basis).  The Care Coordination business recorded revenue of $501 million – corresponding to a significant growth of 27% over the previous years fourth quarter. Organic revenue growth was 23%.

International revenue decreased by 12% to $1,257 million (an increase of 2% on a constant currency basis), clearly negatively impacted by currency translation. Organic revenue growth was 3%. Net Health Care revenue was $617 million (-10%, +5% at constant currency). Dialysis product revenue decreased by 13% to $640 million (-1% at constant currency).


International segments:

Europe, Middle East and Africa (EMEA) revenue decreased by 12% to $673 million. Constant currency and organic revenue growth was 1%. Net Health Care revenue decreased by 11% to $306 million (+4% at constant currency). Dialysis product revenue decreased by 13% to $367 million (-1% at constant currency and stable on an organic perspective).

Asia-Pacific revenue decreased by 6% to $394 million (+1% at constant currency). Net Health Care revenue amounted to $171 million (+3% at constant currency), dialysis product revenue decreased to $223 million (stable level at constant currency rates).

Latin America revenue decreased by 20% to $190 million. At constant currency revenue grew by 3%. Organic revenue growth was 15%. Net Health Care revenue decreased by 14% to $140 million (+9% at constant currency). With a plus of 27% organic growth was very strong. Dialysis product revenue decreased by 33% to $50 million (a decrease of 9% at constant currency).


Earnings

Operating income (EBIT) was $662 million, stable compared to last year. The sale of remaining European marketing rights to a Joint Venture was recognized in the fourth quarter resulting in an additional gain of $18 million. The company also reached an agreement in principle to resolve a product liability litigation in the United States involving GranuFlo®/NaturaLyte®. This caused a pre-tax charge of $60 million. Excluding both special items operating income increased 5% from $669 million to $704 million.

Operating income for North America for the fourth quarter of 2015 was $514 million, an increase of 4% as compared to the corresponding quarter in 2014. Excluding the $60 million settlement costs for the GranuFlo®/NaturaLyte® case the operating income was $574 million, a strong increase of 16%.


International segments:


Operating income for EMEA for the fourth quarter of 2015 increased by 20% to $172 million as compared to the same quarter 2014. Operating income, excluding the $18 million gain  resulting from the sale of the European marketing rights, was $154 million, reflecting an increase of 8%. Operating income for Asia-Pacific was $79 million, a sequential improvement of $11 million and a decrease of 21% on a year on year basis. Operating income for Latin America for the fourth quarter of 2015 was $23 million (Q4 2014: $35 million).

The corporate costs were up at $126 million compared to $108 million in Q4 2014.

Net interest expense for the reported quarter was with $88 million clearly below Q4 of last year (-25%) due to higher interest income resulting from the early repayment of interest-bearing notes receivables and due to a decreased average debt level.

Income tax expense was $180 million for Q4 2015, which translates into an effective tax rate of 31.4%. This compares to income tax expense of $143 million and a tax rate of 26.2%, which was influenced favorably by the resolution of challenged deductions for the civil payments taken in prior years.

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the fourth quarter of 2015 was $317 million compared to $335 million in the fourth quarter of 2014. Excluding special items net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA was $347 million – this means an increase by 2%. Net income attributable to noncontrolling interest increased to $77 million ($68 million in Q4 2014).

Basic earnings per share (EPS) for the fourth quarter of 2015 was $1.04, compared to $1.11 for the corresponding period in 2014. The weighted average number of shares outstanding for Q4 2015 was approximately 305.1 million shares, compared to approximately 303.3 million shares.


Cash flow

In the fourth quarter of 2015, the company generated $548 million, representing approximately 13% of revenue, in net cash provided by operating activities, compared to the corresponding figure of last year of $588 million.

A total of $299 million was spent for capital expenditures, net of disposals. Free cash flow was $249 million compared to $306 million in the comparable quarter of 2014.

A total of $151 million in cash was spent for acquisitions and investments. Divestitures driven by the early repayment of interest bearing notes receivables were $209 million. Free cash flow after investing activities was $307 million as compared to ($419) million in Q4 2014.

Full year 2015

Revenue and earnings

Net revenue for full year 2015 increased by 6% to $16,738 million (+11% at constant currency) as compared to fiscal 2014. Organic revenue growth worldwide was 6%.

Operating income (EBIT) for the full year 2015 increased by 3% to  $2,327 million. Excluding special items operating income grew by 5% and reached $2,388 million as compared to $2,271 million for fiscal 2014.

Net interest expense for fiscal 2015 was $391 million as compared to $411 million for the corresponding period in 2014.

Income tax expense for full year 2015 was $623 million, which translates into an effective tax rate of 32.1%. This compares to income tax expense of $584 million and a tax rate of 31.7% for 2014.

For full year 2015, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA  was $1,029 million compared to $ 1,045 million in 2014. Excluding special items net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increased to $1,082 million, plus 2% compared with the comparable number of $1,058 million for fiscal 2014.

For fiscal year 2015, basic earnings per share (EPS) was down at $3.38 as compared to the corresponding number for full year 2014 ($3.46). The weighted average number of shares outstanding for 12 months of 2015 was approximately 304.4 million shares (full year 2014: 302.3 million).

Cash flow

In the reported period 2015, the company generated $1,960 million in net cash provided by operating activities, representing 11.7% of revenue, as compared to $1,861 million for the same period in 2014.

A total of $935 million was spent for capital expenditures, net of disposals. Free cash flow was $1,025 million as compared to $941 million in 2014, a strong increase of roughly 9% on a year on year basis.

A total of $66 million in cash was spent for acquisitions and investments, net of divestitures. Free cash flow after investing activities was $959 million as compared to ($829) million for the twelve months of 2014.

Employees

As of December 31, 2015, Fresenius Medical Care had 104,033 employees (full-time equivalents) worldwide, compared to 99,895 employees at the end of 2014. This increase of 4% was mainly attributable to our continued organic growth and acquisitions.

Balance sheet structure

The company´s total assets were slightly above last years level and amounted to $25,533 million (Dec. 31, 2014: $25,381 million). Current assets increased by 4% to $6,984 million (Dec. 31, 2014: $6,718 million). Goodwill and intangible assets as well as non-current assets remained stable with $13,863 million (Dec. 31, 2014: 13,951 million) and $4,686 million (Dec. 31, 2014: 4,712 million) respectively. Total equity increased by 5% to $10,496 million (Dec. 31, 2014: $10,028 million). The equity ratio was 41% as compared to 40% at the end of 2014. Total debt was $8,646 million (Dec. 31, 2014: $9,466 million).


Please refer to the attachments for a complete overview of the results for the fourth quarter and full year 2015 and the reconciliation of non-GAAP financial measures included in this release to the most comparable GAAP financial measures.

Dividend

At the Annual General Meeting to be held on May 12, 2016, shareholders will be asked to approve a dividend of €0.80 per share, an increase of 3% compared to 2014 (€0.78). This would mean the 19th consecutive dividend increase, shareholders can expect.

 

Outlook 2016

Based on the projection Fresenius Medical Care provided for 2016, the company is guiding for  revenue to grow 7-10% at constant currency excluding acquisitions 2015 and 2016. Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to increase by 15-20% in 2016 excluding acquisitions 2015 and 2016, based on net income for 2015 of $1,057 million (net income excluding settlement costs for an agreement in principle for the GranuFlo®/NaturaLyte® case of -$37 million and +$9 million acquisitions).

The company expects to spend capital expenditures of $1.0 - $1.1 billion and around $750 million on acquisitions. The debt/EBITDA ratio is expected to be below 3.0 by the end of 2016.

 

 

Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases of which around 2.8 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,418 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 294,381 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with the core business, the company focuses on expanding the range of additional medical services in the field of care coordination.

Disclaimer

This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

1attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
²excluding special items: divestiture of dialysis business in Venezuela, sale of the European marketing rights to Vifor and settlement costs for an agreement in principle for the GranuFlo® case in 2015 as well as closing of manufacturing plants in 2014.

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news-896 Thu, 29 Oct 2015 00:00:00 +0100 Fresenius Medical Care reports third quarter 2015 results and confirms guidance for full year 2015 /en/media/news/details/detail/News/fresenius-medical-care-reports-third-quarter-2015-results-and-confirms-guidance-for-full-year-2015/ Investor News           Press Release

  • 2015 outlook confirmed

  • Strong organic growth and very positive earnings development in North America

  • Strong growth dynamic in Care Coordination activities

  • International performance furthermore impacted by currency fluctuations

  • EBIT and net income[1] influenced by one-time items[2]

 

Third quarter 2015 key figures:

Net revenue $4,231 million +3%
Operating income (EBIT) $614 million +4%
Operating income (EBIT) excluding one-time items2 $632 million +5%
Net income1 $262 million -3%
Net income excluding one-time items1,2 $284 million +2%
Basic earnings per share $0.86 -4%

 

First nine months 2015 key figures:

Net revenue $12,390 million +8%
Operating income (EBIT) $1,665 million +5%
Operating income (EBIT) excluding one-time items2 $1,683 million +5%
Net income1 $713 million 0%
Net income excluding one-time items 1,2 $735 million +3%
Basic earnings per share $2.34 0%

 

Rice Powell, chief executive officer of Fresenius Medical Care stated: “With the dynamic  growth in our Care Coordination business and our continued strong operating performance in our core businesses, we are well positioned for future success. We are very satisfied with our accomplishments in the third quarter despite the unfavorable currency impacts. We confirm our outlook for the full year 2015 and remain focused to further strengthen our business to deliver high quality care for our patients.”

 

Third quarter 2015

Revenue

Net revenue for the third quarter of 2015 increased by 3% to $4,231 million (+9% at constant currency) as compared to the third quarter of 2014. Organic revenue growth worldwide was 6%. Net Health Care revenue grew by 6% to $3,402 million (+10% at constant currency). After two very strong quarters in the product business, we are closer to a normalized organic revenue level. Dialysis product revenue was down by 9% to $829 million as compared to the third quarter of 2014 mainly due to a negative currency impact in the three International segments. On a constant currency basis, the dialysis product revenue increased by 2%.

North America revenue for the third quarter of 2015 increased by 11% to $3,013 million. Organic revenue growth was 6%. Net Health Care revenue grew by 12% to $2,794 million with a same market treatment growth of 5%. Net Dialysis Care revenue increased by 6% to $2,314 million and Care Coordination revenue increased by 56% to $480 million (organic growth of 17%). Dialysis product revenue increased by 3% to $219 million as compared to the third quarter of 2014.

International revenue decreased by 12% to $1,213 million (an increase of 5% on a constant currency basis). Organic revenue growth was 6%. While the underlying organic revenue developed positively, the currency translation resulted in a negative impact. Net Health Care revenue decreased by 13% to $608 million (+6% at constant currency). Dialysis product revenue decreased by 12% to $605 million (+3% at constant currency).

International segments:

Europe, Middle East and Africa (EMEA) revenue decreased by 16% to $659 million (+2% at constant currency). Organic revenue growth was 2%. Net Health Care revenue decreased by 16% to $309 million (+3% at constant currency). Dialysis product revenue decreased by 16% to $350 million (stable at constant currency).

Asia-Pacific revenue decreased by 2% to $378 million (+9% at constant currency). Organic revenue growth was 10%. Net Health Care revenue decreased by 9% to $168 million (+4% at constant currency). Dialysis product revenue increased by 3% to $210 million (+13% at constant currency).

Latin America revenue decreased by 18% to $176 million (+7% at constant currency). Organic revenue growth was 13%. Net Health Care revenue decreased by 12% to $131 million (+12% at constant currency). Dialysis product revenue decreased by 33% to $44 million (a decrease of 6% at constant currency). The regional performance was impacted by the divestiture of our dialysis service business in Venezuela.

Earnings

Operating income (EBIT) increased by 4% from $590 million in the third quarter of 2014 to $614 million in the third quarter of 2015. Operating income, excluding one-time items, increased by 5% from $601 million to $632 million; adjusted for: a negative impact ($26 million) from the divestiture of the dialysis service business in Venezuela, a negative impact due to the closing of a manufacturing plant in the third quarter of 2014 ($11 million) and a positive impact of $8 million from the sale of our European marketing rights for certain renal pharmaceuticals to our joint venture Vifor Fresenius Medical Care Renal Pharma. The sale of remaining marketing rights is being recognized as they are transferred at the country level. Therefore, we anticipate additional gains will be realized in the fourth quarter of 2015.

Operating income for North America for the third quarter of 2015 was $515 million, an increase of 25% as compared to the third quarter of 2014.

International segments:
Operating income for EMEA for the third quarter of 2015 was $130 million, a decrease of 14% as compared to the third quarter of 2014. Operating income, excluding one-time items, was $122 million. Operating income for Asia-Pacific for the third quarter of 2015 was $68 million, a decrease of 25% as compared to the third quarter of 2014. Operating income for Latin America for the third quarter of 2015 was ($8 million). Operating income, excluding one-time items, was $18 million.

Net interest expense for the third quarter of 2015 was with $100 million at the same level as compared to the third quarter of 2014.

Income tax expense was $168 million for the third quarter of 2015, which translates into an effective tax rate of 32.8%. This compares to income tax expense of $162 million and a tax rate of 32.9% for the third quarter of 2014.

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the third quarter of 2015 was $262 million, a decrease of 3% compared to $271 million for the third quarter of 2014. Net income attributable to noncontrolling interest increased to $84 million ($58 million in the third quarter of 2014) due to the strong earnings development in North America. Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the third quarter of 2015, excluding one-time items, increased by 2% to $284 million.

Basic earnings per share (EPS) for the third quarter of 2015 was $0.86, a decrease of 4% compared to the corresponding number for the third quarter of 2014. The weighted average number of shares outstanding for the third quarter of 2015 was approximately 304.7 million shares, compared to approximately 302.7 million shares for the third quarter of 2014. The increase in shares outstanding resulted from stock option exercises during the last twelve months. 

Cash flow

In the third quarter of 2015, the company generated $579 million, representing roughly 14% of revenue, in net cash provided by operating activities, compared to the corresponding figure of last year of $712 million.

A total of $224 million was spent for capital expenditures, net of disposals. Free cash flow was $355 million compared to $488 million in the third quarter of 2014.

A total of $57 million in cash was spent for acquisitions and investments, net of divestitures. Free cash flow after investing activities was $298 million as compared to ($125) million in the third quarter of 2014.

First nine months 2015

Revenue and earnings

Net revenue for the first nine months of 2015 increased by 8% to $12,390 million (+13% at constant currency) as compared to the first nine months of 2014. Organic revenue growth worldwide was 7%.

Operating income (EBIT) for the first nine months of 2015 was $1,665 million as compared to $1,591 million in the first nine months of 2014. This represents an increase of 5%. Operating income, excluding one-time items, increased by 5% to $1,683 million.

Net interest expense for the first nine months of 2015 was $304 million as compared to $294 million in the first nine months of 2014.

Income tax expense for the first nine months of 2015 was $441 million, which translates into an effective tax rate of 32.4%. This compares to income tax expense of $440 million and a tax rate of 33.9% for the first nine months of 2014. For the full year, the company expects the tax rate to be on the lower end of its guidance range of 33 to 34%.

For the first nine months of 2015, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA was stable at $713 million ($710 million in the same period in the previous year). Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA excluding one-time items for the first nine months of 2015 increased by 3% to $735 million.

In the first nine months of 2015, basic earnings per share (EPS) remained stable with $2.34 as compared to the corresponding number for the first nine months of 2014 ($2.35). The weighted average number of shares outstanding during the first nine months of 2015 was approximately 304.2 million shares.

Cash flow

In the first nine months of 2015, the company generated $1,412 million in net cash provided by operating activities, representing 11.4% of revenue, as compared to $1,274 million for the same period in 2014.

A total of $636 million was spent for capital expenditures, net of disposals. Free cash flow for the first nine months of 2015 was $776 million as compared to $635 million in the first nine months of 2014.

A total of $124 million in cash was spent for acquisitions and investments, net of divestitures. Free cash flow after investing activities was $652 million as compared to ($410) million in the first nine months of 2014.

 

Employees

As of September 30, 2015, Fresenius Medical Care had 102,591 employees (full-time equivalents) worldwide, compared to 97,327 employees at the end of September 2014. This increase was mainly attributable to acquisitions as well as to our continued organic growth.

Balance sheet structure

The company´s total assets were stable at $25,414 million (Dec. 31, 2014: $25,447 million). Current assets were comparable at $6,760 million (Dec. 31, 2014: $6,725 million). Non-current assets were slightly down at $18,654 million (Dec. 31, 2014: $18,722 million). Total equity increased by 2% to $10,243 million (Dec. 31, 2014: $10,028 million). The equity ratio was 40% as compared to 39% at the end of 2014. Total debt was $9,093 million (Dec. 31, 2014: $9,532 million). As of September 30, 2015, the debt/EBITDA ratio was 2.9 (Dec. 31, 2014: 3.1).

 

Please refer to the attached PDF for a complete overview of the results for the third quarter and first nine months of 2015 and the reconciliation of non-GAAP financial measures included in this release to the most comparable GAAP financial measures.

Outlook[3] confirmed

For the 2015 outlook the company expects revenue to grow at 5-7%, which at constant currency is a growth rate of 10-12%. Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to increase by 0-5% in 2015.

The company expects to spend around $1.0 billion on capital expenditures and around $300 million on acquisitions in 2015. The debt/EBITDA ratio is expected to be around 3.0 by the end of 2015.

In addition we confirm our 2016 projections. We expect revenue to increase around 7-10% (at constant currency) and net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA to grow by 15-20%.

We expect the progress in our business to be consistent with our long-term targets.

Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases of which more than 2.6 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,402 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 290,250 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with the core business, the company focuses on expanding the range of additional medical services in the field of care coordination.

Disclaimer
This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

[1] attributable for shareholders of Fresenius Medical Care AG & Co. KGaA
[2]
For detailed information on one-time items please refer to the table on page 18 of the attached investor news.
[3]
The outlook/projection provided for 2015/2016 is based on current exchange rates. Savings from the global efficiency program are included, while potential acquisitions are not. In addition the outlook reflects further operating cost investments within the Care Coordination business for future growth in line with our 2020 strategy.

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news-868 Wed, 29 Jul 2015 00:00:00 +0200 Fresenius Medical Care reports second quarter 2015 results and confirms guidance for full year 2015 /en/media/news/details/detail/News/fresenius-medical-care-reports-second-quarter-2015-results-and-confirms-guidance-for-full-year-2015/ Investor News     Press Release

  • Second quarter performance on track to achieve full year guidance for 2015
  • Strong year to date revenue and earnings growth
  • International performance mainly masked by currencies in the second quarter
  • Strong year to date cash flow generation


Second Quarter 2015 key figures:

Net revenue $ 4,199 million + 9%
Operating income (EBIT) $ 547 million - 2%
Net income attributable to shareholders of
Fresenius Medical Care AG & Co. KGaA   
$ 241 million + 3%
Basic earnings per share $ 0.79 + 2%

First half 2015 key figures:

Net revenue $ 8,159 million + 10%
Operating income (EBIT) $ 1,051 million + 5%
Net income attributable to shareholders of
Fresenius Medical Care AG & Co. KGaA   
$ 450 million + 3%
Basic earnings per share $ 1.48 + 2%


Rice Powell, chief executive officer of Fresenius Medical Care stated: “Our second quarter 2015 results showed a positive underlying performance. We are pleased with our revenue and earnings growth considering the negative currency impact on our International operations in the second quarter. We have made further progress with the integration of our Care Coordination operations. Our performance is in line with our full year guidance for 2015 and we are confident to achieve our long-term targets for 2020.”

 

Second Quarter 2015

Revenue

Net revenue (attributable to shareholders of Fresenius Medical Care AG & Co. KGaA) for the second quarter of 2015 increased by 9% to $4,199 million (+15% at constant currency) as compared to the second quarter of 2014. Organic revenue growth worldwide was 8%. Net Health Care revenue grew by 13% to $3,345 million (+18% at constant currency). The dialysis product revenue decreased by 4% to $854 million as compared to the second quarter of 2014 mainly due to negative currency developments in the International product business. On a constant currency basis the dialysis product revenue increased by 8%.

North America revenue for the second quarter of 2015 increased by 17% to $2,946 million. Organic revenue growth was 7%. Net Health Care revenue grew by 17% to $2,722 million with a same market treatment growth of 4%. Net Dialysis Care revenue increased by 6% to $2,254 million while the Care Coordination revenue increased by 149% to $468 million (organic growth of 24%). Dialysis product revenue increased by 9% to $224 million as compared to the second quarter of 2014.

International revenue decreased by 4% to $1,247 million. On a constant currency basis revenue increased by 14%. Organic revenue growth was 9%. Net Health Care revenue decreased by 1% to $623 million (+18% at constant currency). Dialysis product revenue decreased by 6% to $624 million (+10% at constant currency).

International segments:

Europe, Middle East and Africa (EMEA) revenue decreased by 15% to $668 million (+4% at constant currency). Organic revenue growth was 5%. Net Health Care revenue decreased by 17% to $309 million (+3% at constant currency). Dialysis product revenue decreased by 14% to $359 million (+5% at constant currency).

Asia-Pacific revenue increased by 22% to $376 million (+32% at constant currency). Organic revenue growth was 12%. Net Health Care revenue increased by 37% to $164 million (+55% at constant currency). Dialysis product revenue increased by 12% to $212 million (+18% at constant currency).

Latin America revenue increased by 2% to $203 million (+22% at constant currency). Organic revenue growth was 19%. Net Health Care revenue increased by 6% to $150 million (+25% at constant currency). Dialysis product revenue decreased by 8% to $53 million (+15% at constant currency).

Earnings

Operating income (EBIT) decreased by 2% from $556 million in the second quarter of 2014 to $547 million in the second quarter of 2015.

Operating income for North America for the second quarter of 2015 was $428 million, an increase of 7% as compared to the second quarter of 2014.

In the International segments, operating income for the second quarter of 2015 decreased by 11% to $217 million as compared to $243 million in the second quarter of 2014.

International segments: Operating income for EMEA for the second quarter of 2015 was $134 million, a decrease of 20% as compared to the second quarter of 2014. Operating income for Asia-Pacific for the second quarter of 2015 was $67 million, an increase of 22% as compared to the second quarter of 2014. Operating income for Latin America for the second quarter of 2015 was $16 million, a decrease of 20% as compared to the second quarter of 2014.

Net interest expense for the second quarter of 2015 was $102 million as compared to $98 million in the second quarter of 2014 which mainly reflects the financing costs of the acquisitions made in the second half of 2014.

Income tax expense was $135 million for the second quarter of 2015, which translates into an effective tax rate of 30.4%. On an adjusted basis the tax rate for the second quarter of 2014 was 34.8% (typo3/#_ftn1The tax rate in the second quarter of 2014 was influenced by a special tax impact which resulted in an expense of $18 million.).

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the second quarter of 2015 was $241 million, an increase of 3% compared to $234 million for the second quarter of 2014 and in line with our full year guidance for 2015.

Basic earnings per share (EPS) for the second quarter of 2015 was $0.79, an increase of 2% compared to the corresponding number for the second quarter of 2014. The weighted average number of shares outstanding for the second quarter of 2015 was approximately 304.2 million shares, compared to approximately 301.8 million shares for the second quarter of 2014. The increase in shares outstanding resulted from stock option exercises during the second quarter of 2015.  

Cash Flow

In the second quarter of 2015, the company generated $385 million, representing 9.2% of revenue, in net cash provided by operating activities, compared to the corresponding figure of last year of $449 million.

A total of $214 million was spent for capital expenditures, net of disposals. Free cash flow was $171 million compared to $231 million in the second quarter of 2014.

A total of $55 million in cash was spent for acquisitions, net of divestitures. Free cash flow after investing activities was $116 million as compared to ($66) million in the second quarter of 2014.

 

First half 2015

Revenue and earnings

Net revenue for the first half of 2015 increased by 10% to $8,159 million (+16% at constant currency) as compared to the first half of 2014. Organic revenue growth worldwide was 8%.

Operating income (EBIT) for the first half of 2015 was $1,051 million as compared to $1,001 million in the first half of 2014. This represents an increase of 5% on a reported basis.

Net interest expense for the first half of 2015 was $204 million as compared to $195 million in the first half of 2014.

Income tax expense for the first half of 2015 was $273 million, which translates into an effective tax rate of 32.2%. On an adjusted basis the tax rate for the first half of 2014 was 32.3% (The tax rate in the second quarter of 2014 was influenced by a special tax impact which resulted in an expense of $18 million.). For the full year, the company expects the tax rate to be on the lower end of its guidance range of 33 to 34%.

For the first half of 2015, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA was $450 million, up by 3% from the corresponding number of $439 million for the first half of 2014.

In the first half of 2015, basic earnings per share (EPS) was $1.48, an increase of 2% compared to the corresponding number for the first half of 2014. The weighted average number of shares outstanding during the first half of 2015 was approximately 303.9 million shares.

Cash Flow

In the first half of 2015, the company generated $832 million in net cash provided by operating activities, representing 10.2% of revenue, as compared to $562 million for the same period in 2014.

A total of $411 million was spent for capital expenditures, net of disposals. Free cash flow for the first half of 2015 was $421 million as compared to $147 million in the first half of 2014.

A total of $66 million in cash was spent for acquisitions and investments, net of divestitures. Free cash flow after investing activities was $355 million as compared to a ($285) million in the first half of 2014.

Employees

As of June 30, 2015, Fresenius Medical Care had 102,893 employees (full-time equivalents) worldwide, compared to 94,401 employees at the end of June 2014. This increase of ~8,500 employees was mainly attributable to acquisitions as well as our continued organic growth.

Balance sheet structure

The company´s total assets of $25,410 million remained on a similar level (Dec. 31, 2014: $25,447 million). Current assets were virtually flat at $6,702 million (Dec. 31, 2014: $6,725 million). Non-current assets remained almost unchanged at $18,708 million (Dec. 31, 2014: $18,722 million). Total equity increased by 2% to $10,182 million (Dec. 31, 2014: $10,028 million). The equity ratio was 40% as compared to 39% at the end of 2014. Total debt was $9,270 million (Dec. 31, 2014: $9,532 million). As of June 30, 2015, the debt/EBITDA ratio was 3.0 (Dec. 31, 2014: 3.1).

Please refer to the attachments for a complete overview of the results for the second quarter and first half 2015 and the reconciliation of non-GAAP financial measures included in this release to the most comparable GAAP financial measures.

Outlook* confirmed

For the 2015 outlook the company expects revenue to grow at 5-7%, which at constant currency is a growth rate of 10-12%. Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to increase by 0-5% in 2015.

The company expects to spend around $1.0 billion on capital expenditures and around $400 million on acquisitions in 2015. The debt/EBITDA ratio is expected to be around 3.0 by the end of 2015.

For the 2016 projections we expect revenue to increase around 7-10% (previously 9-12%). This is due to the fact that we expect some of the initiatives in Care Coordination operations to be delayed into the following years. The net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is still expected to grow by 15-20% (unchanged).

As disclosed in the company’s long-term target for 2020, the company expects revenue to grow at an average annual growth rate of approx. 10% and net income attributable to shareholders in the high single digits.

*The outlook/projection provided for 2015/2016 is based on current exchange rates. Savings from the global efficiency program are included, while potential acquisitions are not. In addition the outlook reflects further operating cost investments within the Care Coordination business for future growth in line with our 2020 strategy.

***

Fresenius Medical Care is the world's largest provider of products and services for individuals with renal diseases of which more than 2.6 million patients worldwide regularly undergo dialysis treatment. Through its network of 3,421 dialysis clinics, Fresenius Medical Care provides dialysis treatments for 289,610 patients around the globe. Fresenius Medical Care is also the leading provider of dialysis products such as dialysis machines or dialyzers. Along with the core business, the company focuses on expanding the range of additional medical services in the field of care coordination.

Disclaimer

This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

***

]]>
news-851 Wed, 29 Apr 2015 22:00:00 +0200 Fresenius Medical Care reports first quarter 2015 results and confirms guidance for full year 2015 /en/media/news/details/detail/News/fresenius-medical-care-reports-first-quarter-2015-results-and-confirms-guidance-for-full-year-2015/ Investor News   Press Release

  • First quarter performance fully on track to achieve full year guidance
  • Strong revenue and earnings growth
  • Strong cash flow generation
  • Segment structure changed and additional disclosures for Care Coordination


First quarter 2015 key figures:

Net revenue $ 3,960 million + 11%
Operating income (EBIT) $ 504 million + 13%
Net income attributable to shareholders of
Fresenius Medical Care AG & Co. KGaA   
$ 210 million + 2%
Basic earnings per share $ 0.69 + 1%

Rice Powell, chief executive officer of Fresenius Medical Care stated: “Our first quarter 2015 results show a positive start into the year. We are pleased with our revenue and earnings growth. We have made good progress on our Care Coordination business and will make operating cost investments in this area in 2015 for future growth. Our performance is in line with our full year guidance for 2015 and we are on track to achieve our long-term targets”.

First Quarter 2015

Revenue

Net revenue for the first quarter of 2015 increased by 11% to $3,960 million (+17% at constant currency) as compared to the first quarter of 2014. Organic revenue growth worldwide was 7%. Net Health Care revenue grew by 14% to $3,182 million (+18% at constant currency). The dialysis product revenue of $778 million remained on a similar level as compared to the first quarter of 2014 solely due to negative currency developments. On a constant currency basis the dialysis product revenue increased by +11%.

North America revenue for the first quarter of 2015 increased by 16% to $2,771 million. Organic revenue growth was 6%. Net Health Care revenue grew by 17% to $2,571 million with a same market treatment growth of 4%. Net Dialysis Care revenue increased by 4% to $2,137 million while the Care Coordination revenue increased by 191% to $434 million (organic growth of 39%). Dialysis product revenue increased by 4% to $200 million as compared to the first quarter of 2014.

International revenue increased by 2% to $1,180 million. On a constant currency basis revenue increased 18%. Organic revenue growth was 10%. Net Health Care revenue increased by 5% to $611 million (+24% at constant currency). Dialysis product revenue decreased by 2% to $569 million (+13% at constant currency).

Earnings

Operating income (EBIT) increased by 13% from $445 million in the first quarter of 2014 to $504 million in the first quarter of 2015. Delivered EBIT (operating income less noncontrolling interests. Approximates the operating income attributable to shareholders of Fresenius Medical Care AG&Co. KGaA) increased 12% to $450 million.

Operating income for North America for the first quarter of 2015 was $340 million, an increase of 1% as compared to the first quarter of 2014. Delivered EBIT decreased 3% to $288 million.

In the International segment, operating income for the first quarter of 2015 increased by 35% to $244 million as compared to $180 million in the first quarter of 2014.


Net interest expense for the first quarter of 2015 was $102 million as compared to $96 million in the first quarter of 2014 which mainly reflects the financing costs of the acquisitions made in the second half of 2014.

Income tax expense was $138 million for the first quarter of 2015, which translates into an effective tax rate of 34.3%. This compares to income tax expense of $102 million and a tax rate of 29.1% for the first quarter of 2014. Adjusted for the positive impact of a German tax audit the tax rate would have been 33.6% in the first quarter of 2014.

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the first quarter of 2015 was $210 million, an increase of 2% compared to $205 million for the first quarter of 2014.

Basic earnings per share (EPS) for the first quarter of 2015 was $0.69, an increase of 1% compared to the corresponding number for the first quarter of 2014. The weighted average number of shares outstanding for the first quarter of 2015 was approximately 303.7 million shares, compared to approximately 301.5 million shares for the first quarter of 2014. The increase in shares outstanding resulted from stock option exercises during the first quarter of 2015.

Cash Flow

In the first quarter of 2015, the company generated $447 million in net cash provided by operating activities, representing 11% of revenue, compared to the corresponding figure of last year ($112 million).

A total of $197 million was spent for capital expenditures, net of disposals. Free cash flow was $250 million compared to a negative $85 million in the first quarter of 2014.

A total of $11 million in cash was spent for acquisitions, net of divestitures. Free cash flow after investing activities was $239 million as compared to a negative $220 million in the first quarter of 2014.

Employees

As of March 31, 2015, Fresenius Medical Care had 101,543 employees (full-time equivalents) worldwide, compared to 91,542 employees at the end of March 2014. This increase of ~10,000 employees was mainly attributable to acquisitions as well as our continued organic growth.

Balance sheet structure

The company´s total assets were $25,107 million (Dec. 31, 2014: $25,447 million), a decrease of 1%. Current assets decreased by 2% to $6,599 million (Dec. 31, 2014: $6,725 million). Non-current assets were $18,508 million (Dec. 31, 2014: $18,722 million), a decrease of 1%. Total equity increased by 1% to $10,139 million (Dec. 31, 2014: $10,028 million). The equity ratio was 40% as compared to 39% at the end of 2014. Total debt was $9,052 million (Dec. 31, 2014: $9,532 million). As of March 31, 2015, the debt/EBITDA ratio was 2.9 (Dec. 31, 2014: 3.1).

Please refer to the attachments for a complete overview of the results for the first quarter 2015 and the reconciliation of non-GAAP financial measures included in this release to the most comparable GAAP financial measures.

 

Outlook

For the 2015 outlook the company expects revenue to grow at 5-7%, which at constant currency is a growth rate of 10-12%. Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to increase by 0–5% in 2015.

The company expects to spend around $1.0 billion on capital expenditures and around $400 million on acquisitions in 2015. The debt/EBITDA ratio is expected to be around 3.0 by the end of 2015.

For the 2016 projections we expect revenue to increase 9–12% and net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA to grow by 15–20%.

As disclosed in the company’s long-term target for 2020, the company expects revenue to grow at an average annual growth rate of approx. 10% and net income attributable to shareholders in the high single digits.

(Please note: The original outlook/projection provided for 2015/2016 is based on exchange rates prevailing at the beginning of 2015. Savings from the global efficiency program are included, while potential acquisitions are not. In addition the outlook reflects further operating cost investments within the Care Coordination business for future growth in line with our 2020 strategy.)

***
Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 2.6 million individuals worldwide. Through its network of 3,396 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatments for 286,768 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products.

Disclaimer
This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.
***

]]>
news-826 Wed, 25 Feb 2015 12:17:00 +0100 Fresenius Medical Care reports fourth quarter and full year 2014 results /en/media/news/details/detail/News/fresenius-medical-care-reports-fourth-quarter-and-full-year-2014-results/ Investor News     Press Release

  • Targets achieved for fiscal year 2014
  • Further expansion of our operations and new record level of revenue
  • Increased dividend to be proposed at the Annual General Meeting
  • Accelerated earnings growth expected


Fourth Quarter 2014 key figures:

Net revenue $ 4,320 million + 12%
Operating income (EBIT) $ 663 million   0%
Net income attributable to shareholders of
Fresenius Medical Care AG & Co. KGaA   
$ 335 million - 4%
Basic earnings per share $ 1.11 - 5%

Full Year 2014 key figures:

Net revenue $ 15,832 million + 8%
Operating income (EBIT) $ 2,255 million 0%
Net income attributable to shareholders of
Fresenius Medical Care AG & Co. KGaA   
$ 1,045 million - 6%
Basic earnings per share $ 3.46 - 5%


Dividend proposal:

Per share 0.78 + 1%


Rice Powell, chief executive officer of Fresenius Medical Care stated: “During fiscal year 2014, we continuously improved our results and delivered on revenue and net income guidance. We have strengthened our core business and also expanded our portfolio with acquisitions in the field of Care Coordination. After revenue of approximately 500 million US$ in 2013 we now expect our Care Coordination business to generate around 1.7 billion of revenue in 2015. We expect accelerated earnings growth for 2015 and beyond supported mainly by a strong organic business, our acquisitions and the Global Efficiency Program”.

Fourth Quarter 2014 

Revenue

Net revenue for the fourth quarter of 2014 increased by 12% to $4,320 million (+15% at constant currency) as compared to the fourth quarter of 2013. Organic revenue growth worldwide was 7%. Health Care revenue grew by 15% to $3,322 million (+18% at constant currency) and dialysis product revenue increased by 3% to $998 million (+8% at constant currency) as compared to the fourth quarter of 2013.

North America revenue for the fourth quarter of 2014 increased by 15% to $2,876 million. Organic revenue growth was 6%. Health Care revenue grew by 15% to $2,640 million with a same market treatment growth of 4%. Net Dialysis Care revenue increased by 5% to $2,245 million. Care Coordination revenue increased by 151% to $395 million. Dialysis product revenue increased by 8% to 236 million compared to the fourth quarter of 2013.

International revenue increased by 5% to $1,422 million (+15% at constant currency). Organic revenue growth was 7%. Health Care revenue increased by 12% to $682 million (+26% at constant currency). Dialysis product revenue decreased by 1% to $740 million (+6% at constant currency).

Earnings

Operating income (EBIT) increased from $661 million in the fourth quarter of 2013 to $663 million in the fourth quarter of 2014. Operating income for North America for the fourth quarter of 2014 was $493 million, an increase of 9% as compared to the fourth quarter of 2013. In the International segment, operating income for the fourth quarter of 2014 increased by 2% to $278 million as compared to $274 million in the fourth quarter of 2013.

Net interest expense for the fourth quarter of 2014 was $117 million, compared to $98 million in the fourth quarter of 2013.

Income tax expense was $143 million for the fourth quarter of 2014, which translates into an effective tax rate of 26.2%. This compares to income tax expense of $171 million and a tax rate of 30.4% for the fourth quarter of 2013. The tax rate was affected favorably by the resolution of challenged deductions for civil settlement payments taken in prior years.

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the fourth quarter of 2014 was $335 million, a decrease of 4% compared to $349 million for the fourth quarter of 2013.

Basic earnings per share (EPS) for the fourth quarter of 2014 was $1.11, a decrease of 5% compared to the corresponding number for the fourth quarter of 2013. The weighted average number of shares outstanding for the fourth quarter of 2014 was approximately 303.3 million shares, compared to approximately 301.0 million shares for the fourth quarter of 2013. The increase in shares outstanding resulted from stock option exercises during 2014.

Cash Flow

In the fourth quarter of 2014, the company generated $588 million in net cash provided by operating activities, representing 14% of revenue, almost unchanged compared to the corresponding figure of last year ($ 589 million).

A total of $282 million was spent for capital expenditures, net of disposals. Free cash flow was $306 million compared to $355 million in the fourth quarter of 2013.

A total of $725 million in cash was spent for acquisitions and investments, net of divestitures. Free cash flow after investing activities was a negative $419 million as compared to $157 million in the fourth quarter of 2013.

Full Year 2014

Revenue and Earnings

Net revenue for the full year 2014 increased by 8% to $15,832 million (+10% at constant currency) as compared to the full year 2013. Organic revenue growth worldwide was 5%.

Operating income (EBIT) for the full year 2014 was $2,255 million as compared to $2,256 million in the full year 2013.

Net interest expense for the full year 2014 was $411 million as compared to $409 million in the full year 2013.

Income tax expense for the full year 2014 was $584 million, which translates into an effective tax rate of 31.7%. This compares to income tax expense of $592 million and a tax rate of 32.0% for the full year 2013. In 2014, the tax rate was influenced by different tax effects partially offsetting each other. In the second quarter the tax rate increased by a reversal of an original tax benefit following a financial court ruling issued against another company, while in the fourth quarter the tax rate was favourably influenced by the resolution of challenged deductions for civil settlement payments taken in prior years.

For the full year 2014, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA was $1,045 million, down by 6% from the corresponding number of $1,110 million for the full year 2013.

In the full year 2014, basic earnings per share (EPS) was $3.46, a decrease of 5% compared to the corresponding number for the full year 2013. The weighted average number of shares outstanding during the full year 2014 was approximately 302.3 million shares.

Cash Flow

In the full year 2014, the company generated $1,861 million in net cash provided by operating activities, representing 12% of revenue, as compared to $2,035 million for the same period in 2013.

A total of $920 million was spent for capital expenditures, net of disposals. Free cash flow for the full year 2014 was $941 million as compared to $1,307 million in the full year 2013.

A total of $1,770 million in cash was spent for acquisitions and investments, net of divestitures. Free cash flow after investing activities was a negative $829 million as compared to a positive $829 million in the full year 2013.

Employees

As of December 31, 2014, Fresenius Medical Care had 99,895 employees (full-time equivalents) worldwide, compared to 90,690 employees at the end of December 2013. This increase of more than 9,200 employees was mainly attributable to acquisitions as well as to our continued organic growth.

Balance sheet structure

The company´s total assets were $25,447 million (Dec. 31, 2013: $23,120 million), an increase of 10%. Current assets increased by 7% to $6,725 million (Dec. 31, 2013: $6,287 million). Non-current assets were $18,722 million (Dec. 31, 2013: $16,833 million), an increase of 11%. Total equity increased by 6% to $10,028 million (Dec. 31, 2013: $9,485 million). The equity ratio was 39% as compared to 41% at the end of 2013. Total debt was $9,532 million (Dec. 31, 2013: $8,417 million). As of December 31, 2014, the debt/EBITDA ratio was 3.1 (Dec. 31, 2013: 2.8).

Please refer to the attachments for a complete overview of the results for the fourth quarter and full year 2014 and the reconciliation of non-GAAP financial measures included in this release to the most comparable GAAP financial measures.

Dividend

At the annual general meeting to be held on May 19, 2015, shareholders will be asked to approve a dividend of €0.78 per share, an increase of 1% from 2013 (€0.77). For the 18th consecutive year, shareholders can expect to receive an increased annual dividend.

Outlook

The information provided is based on exchange rates prevailing at the beginning of 2015. Savings from the global efficiency program are included, while potential acquisitions are not. In addition the outlook reflects further operating cost investments within the Care Coordination segment for future growth in line with our 2020 strategy.

For 2015 the company expects revenue to grow at 5-7% which at constant currency is a growth rate of 10-12%.

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to increase 0–5% in 2015.

The company expects to spend around $1.0 billion on capital expenditures and around $400 million on acquisitions in 2015. The debt/EBITDA ratio is expected to be around 3.0 by the end of 2015.

For the year 2016 we expect an acceleration of growth with a revenue increase of 9–12% and net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA growing by 15–20%.

As disclosed in the company’s long-term target for 2020 the company expects revenue to grow at an average annual growth rate of approx. 10% and net income attributable to shareholders in the high single digits.

 

***
Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 2.7 million individuals worldwide. Through its network of 3,361 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatments for 286,312 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products.

Disclaimer
This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.
***

]]>
news-139 Tue, 04 Nov 2014 10:46:00 +0100 Fresenius Medical Care reports strong operating results for the third quarter 2014 and confirms guidance for full year 2014 /en/media/news/details/detail/News/fresenius-medical-care-reports-strong-operating-results-for-the-third-quarter-2014-and-confirms-guidance-for-full-year-2014/ Investor news    Press release

  • Third quarter shows strong organic revenue growth
  • Operating cash flow on record level in third quarter
  • Company remains on track to achieve full year guidance


Third Quarter 2014 key figures:

Net revenue $4,113 million +12%
Operating income (EBIT) $590 million +6%
Net income attributable to shareholders of
Fresenius Medical Care AG & Co. KGaA
$271 million -1%
Basic earnings per share $0.89-1%


First nine months 2014 key figures:

Net revenue $11,511 million +7%
Operating income (EBIT) $1,591 million 0%
Net income attributable to shareholders of
Fresenius Medical Care AG & Co. KGaA
$710 million -7%
Basic earnings per share $2.35-6%


Rice Powell, chief executive officer of Fresenius Medical Care stated: “The third quarter has confirmed the positive trend from the previous quarter. Growth rates in revenue and earnings again improved and our operating cash flow has reached an all time high for a single quarter. We are on track to achieve our guidance as well as our cost savings target for the full year. The recent acquisitions, in combination with financing activities were important steps in the execution of our strategy to achieve our long term target 2020.”

Third Quarter 2014:

Revenue

Net revenue for the third quarter of 2014 increased by 12% to $4,113 million (+13% at constant currency) as compared to the third quarter of 2013. Organic revenue growth worldwide was 7%. Dialysis services revenue grew by 14% to $3,197 million (+15% at constant currency) and dialysis product revenue increased by 7% to $916 million (+7% at constant currency) as compared to the third quarter of 2013.

North America revenue for the third quarter of 2014 increased by 11% to $2,710 million. Organic revenue growth was 5%. Dialysis services revenue grew by 12% to $2,498 million with a same store treatment growth of 3.5%. Dialysis product revenue was flat compared to the third quarter of 2013 at $212 million.

International revenue increased by 13% to $1,386 million (+16% at constant currency). Organic revenue growth was 8%. Dialysis services revenue increased by 19% to $699 million (+25% at constant currency). Dialysis product revenue increased by 9% to $687 million (+9% at constant currency).

Earnings

Operating income (EBIT) for the third quarter of 2014 increased by 6% to $590 million as compared to $557 million in the third quarter of 2013. Operating income for North America for the third quarter of 2014 was $413 million, flat as compared to the third quarter of 2013. In the International segment, operating income for the third quarter of 2014 increased by 26% to $269 million as compared to $214 million in the third quarter of 2013.

Net interest expense for the third quarter of 2014 was $99 million, compared to $103 million in the third quarter of 2013.

Income tax expense was $162 million for the third quarter of 2014, which translates into an effective tax rate of 32.9%. This compares to income tax expense of $148 million and a tax rate of 32.6% for the third quarter of 2013.

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the third quarter of 2014 was $271 million, a decrease of 1% compared to the corresponding number of $273 million for the third quarter of 2013.

Basic earnings per share (EPS) for the third quarter of 2014 was $0.89, a decrease of 1% compared to the corresponding number for the third quarter of 2013. The weighted average number of shares outstanding for the third quarter of 2014 was approximately 302.7 million shares, compared to 301.3 million shares for the third quarter of 2013. The increase in shares outstanding resulted from stock option exercises in the past twelve months.

Cash Flow

In the third quarter of 2014, the company generated $712 million in net cash provided by operating activities, an increase of 18% compared to the corresponding figure of last year and representing 17% of revenue.

A total of $224 million was spent for capital expenditures, net of disposals. Free cash flow was $488 million compared to $430 million in the third quarter of 2013.

A total of $613 million in cash was spent for acquisitions and investments, net of divestitures. Free cash flow after investing activities was a negative $125 million as compared to $235 million in the third quarter of 2013.

First Nine Months 2014:

Revenue and Earnings

Net revenue for the first nine months of 2014 increased by 7% to $11,511 million (+8% at constant currency) as compared to the first nine months of 2013. Organic revenue growth worldwide was 5%.

Operating income (EBIT) for the first nine months of 2014 was $1,591 million as compared to $1,595 million in the first nine months of 2013.

Net interest expense for the first nine months of 2014 was $294 million as compared to $310 million in the first nine months of 2013.

Income tax expense for the first nine months of 2014 was $440 million, which translates into an effective tax rate of 33.9%. This compares to income tax expense of $421 million and a tax rate of 32.8% for the first nine months of 2013.

For the first nine months of 2014, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA was $710 million, down by 7% from the corresponding number of $761 million for the first nine months of 2013.

In the first nine months of 2014, basic earnings per share (EPS) was $2.35, a decrease of 6% compared to the corresponding number for the first nine months of 2013. The weighted average number of shares outstanding during the first nine months of 2014 was approximately 302.0 million shares.

Cash Flow

In the first nine months of 2014, the company generated $1,274 million in net cash provided by operating activities as compared to $1,446 million for the same period in 2013 and representing 11% of revenue.

A total of $639 million was spent for capital expenditures, net of disposals. Free cash flow for the first nine months of 2014 was $635 million as compared to $952 million in the first nine months of 2013.

A total of $1,045 million in cash was spent for acquisitions and investments, net of divestitures. Free cash flow after investing activities was a negative $410 million as compared to $673 million in the first nine months of 2013.

Employees

As of September 30, 2014, Fresenius Medical Care had 97,327 employees (full-time equivalents) worldwide, compared to 89,282 employees at the end of September 2013. This increase of more than 8,000 employees was attributable to acquisitions as well as to our continued organic growth.

Balance sheet structure

The company´s total assets were $24,253 million (Dec. 31, 2013: $23,120 million), an increase of 5%. Current assets increased by 3% to $6,459 million (Dec. 31, 2013: $6,287 million). Non-current assets were $17,794 million (Dec. 31, 2013: $16,833 million), an increase of 6%. Total equity increased by 3% to $9,750 million (Dec. 31, 2013: $9,485 million). The equity ratio was 40% as compared to 41% at the end of 2013. Total debt was $9,068 million (Dec. 31, 2013: $8,417 million). As of September 30, 2014, the debt/EBITDA ratio was 3.0 (Dec. 31, 2013: 2.8).

Outlook

The company expects revenue to be at around $15.2 billion in 2014, translating into a growth rate of around 4%. This outlook excludes revenue of approximately $500 million from acquisitions completed during the first nine months of 2014.

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to be unchanged between $1.0 billion and $1.05 billion in 2014. The company initiated a global efficiency program designed to enhance the company’s performance over a multi-year period. Potential cost savings, before income taxes, of up to $60 million generated from this program, and net of implementation costs are not included in the outlook for 2014.

For 2014, the company expects to spend around $900 million on capital expenditures. Reflecting the latest acquisitions the company now expects acquisition spending of around $1.3 billion for fiscal year 2014 (previously $1 billion). The debt/EBITDA ratio is expected to be around 3.0 by the end of 2014.

Conference Call

Fresenius Medical Care will hold a conference call to discuss the results of the third quarter and first nine months of 2014 on Tuesday, November 4, 2014, at 3.30 p.m. CET / 9.30 a.m. EST. The company invites investors to follow the live webcast of the call at the company’s website www.fmc-ag.com in the “Investor Relations” section. A replay will be available shortly after the call.

***

Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 2.5 million individuals worldwide. Through its network of 3,349 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatments for 283,135 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products.

Disclaimer
This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

***

 

 

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news-148 Thu, 31 Jul 2014 10:46:00 +0200 Fresenius Medical Care reports strong operating results for the second quarter 2014 and confirms guidance for full year 2014 /en/media/news/details/detail/News/fresenius-medical-care-reports-strong-operating-results-for-the-second-quarter-2014-and-confirms-guidance-for-full-year-2014/ Investor news    Press release

  • Second quarter shows accelerated growth
  • Improvement of underlying operating performance driven by both the North American as well as International segment
  • Implmented further initiatives in the second quarter to expand the care coordination activities
  • Company remains on track to achieve full year guidance

Second quarter 2014 key figures:

Net revenue $3,835 million +6%
Operating income (EBIT) $556 million +2%
Net income attributable to shareholders of
Fresenius Medical Care AG & Co. KGaA
$234 million -11%
Adjusted net income attributable to shareholders of
Fresenius Medical Care AG & Co. KGaA1
$252 million -4%
Earnings per ordinary share $0.77 -10%
Adjusted earnings per ordinary share1 $0.83 -3%

 

First half 2014 key figures:

Net revenue $7,398 million +5%
Operating income (EBIT) $1,001 million -4%
Net income attributable to shareholders of
Fresenius Medical Care AG & Co. KGaA
$439 million -10%
Adjusted net income attributable to shareholders of
Fresenius Medical Care AG & Co. KGaA1
$457 million -6%
Earnings per ordinary share $1.46 -9%
Adjusted earnings per ordinary share1 $1.52 -5%

1 adjusted for an unfavorable tax impact of USD 18 million in the second quarter of 2014

Rice Powell, chief executive officer of Fresenius Medical Care stated: “The second quarter showed sequentially enhanced revenue growth and improved strong operating performance. We expect the organic growth to continue in the second half of the year and are confident to meet our guidance for the full year as well as our cost savings target of up to $60 million before tax for 2014. With our recent acquisitions of Sound Physicians and MedSpring Urgent Care we made important steps in our strategy of expanding our service network to achieve excellent patient care in a more coordinated and integrated model.”

Second Quarter 2014:

Revenue

Net revenue for the second quarter of 2014 increased by 6% to $3,835 million (+7% at constant currency) compared to the second quarter of 2013. Organic revenue growth worldwide was 5%. Dialysis services revenue grew by 7% to $2,949 million (+8% at constant currency) and dialysis product revenue increased by 2% to $886 million (+1% at constant currency) compared to the second quarter of 2013.

North America revenue for the second quarter of 2014 increased by 6% to $2,521 million. Organic revenue growth was 4%. Dialysis services revenue grew by 7% to $2,316 million with a same store treatment growth of 3.3%. Dialysis product revenue decreased by 6% to $205 million.

International revenue increased by 6% to $1,297 million (+7% at constant currency). Organic revenue growth was 5%. Dialysis services revenue increased by 8% to $633 million (+12% at constant currency). Dialysis product revenue increased by 3% to $664 million (+3% at constant currency).

Earnings

Operating income (EBIT) for the second quarter of 2014 increased by 2% to $556 million compared to $544 million in the second quarter of 2013. Operating income for North America increased by 3% in the second quarter of 2014 to $401 million compared to $391 million in the second quarter of 2013. In the International segment, operating income for the second quarter of 2014 increased by 11% to $243 million compared to $218 million in the second quarter of 2013.

Net interest expense for the second quarter of 2014 was $98 million, compared to $103 million in the second quarter of 2013.

Income tax expense was $177 million for the second quarter of 2014 which translates into an effective tax rate of 38.7%. This compares to income tax expense of $144 million and a tax rate of 32.6% for the second quarter of 2013. The tax rate in the second quarter of 2014 was influenced by a special tax impact which resulted in an expense of $18 million in the second quarter of 2014. On an adjusted basis the tax rate for the second quarter of 2014 was 34.8%. For the full year, the company expects a tax rate of around 34%.

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the second quarter of 2014 was $234 million, a decrease of 11% compared to the corresponding number of $263 million for the second quarter of 2013. On an adjusted basis net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the second quarter of 2014 was $252 million.

Basic earnings per share (EPS) for the second quarter of 2014 was $0.77, a decrease of 10% compared to the corresponding number for the second quarter of 2013. On an adjusted basis EPS for the second quarter of 2014 was $0.83. The weighted average number of shares outstanding for the second quarter of 2014 was approximately 301.8 million shares, compared to 306.3 million shares for the second quarter of 2013. The decrease in shares outstanding resulted from last year`s share buy-back program, partially offset by stock option exercises in the past twelve months.

Cash flow

In the second quarter of 2014, the company generated $449 million in net cash provided by operating activities, a decrease of 14% compared to the corresponding figure of last year and representing 12% of revenue.

A total of $218 million was spent for capital expenditures, net of disposals. Free cash flow was $231 million compared to $352 million in the second quarter of 2013.

A total of $297 million in cash was spent for acquisitions and investments, net of divestitures. Free cash flow after investing activities was -$66 million, compared to $339 million in the second quarter of 2013.

First half 2014:

Revenue and earnings

Net revenue for the first half of 2014 increased by 5% to $7,398 million (+6% at constant currency) compared to the first half of 2013. Organic revenue growth worldwide was 4%.

Operating income (EBIT) for the first half of 2014 decreased by 4% to $1,001 million compared to $1,038 million in the first half of 2013.

Net interest expense for the first half of 2014 was $195 million compared to $207 million in the first half of 2013.

Income tax expense for the first half of 2014 was $278 million which translates into an effective tax rate of 34.5%. This compares to income tax expense of $273 million and a tax rate of 32.8% for the first half of 2013. On an adjusted basis the tax rate for the first half of 2014 was 32.3%. For the full year, the company expects a tax rate of around 34%.

For the first half of 2014, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA was $439 million, down by 10% from the corresponding number of $488 million for the first half of 2013. On an adjusted basis net income attributable to shareholders of Fresenius Medical Care AG&Co. KGaA for the first half of 2014 was $457 million.

In the first half of 2014 basic earnings per share (EPS) was $1.46, a decrease of 9% compared to the corresponding number for the first half of 2013. On an adjusted basis EPS for the first half of 2014 was $1.52. The weighted average number of shares outstanding during the first half of 2014 was approximately 301.6 million shares.

Cash flow

In the first half of 2014, the company generated $562 million in net cash provided by operating activities compared to $841 million for the same period in 2013, representing 8% of revenue.

A total of $415 million was spent for capital expenditures, net of disposals. Free cash flow for the first half of 2014 was $147 million compared to $522 million in the first half of 2013.

A total of $432 million in cash was spent for acquisitions and investments, net of divestitures. Free cash flow after investing activities was -$285 million, compared to $438 million in the first half of 2013.

Employees

As of June 30, 2014, Fresenius Medical Care had 94,401 employees (full-time equivalents) worldwide, compared to 87,944 employees at the end of June 2013. This increase of more than 6,400 employees was attributable to our continued organic growth as well as to acquisitions.

Balance sheet structure

The company´s total assets were $24,145 million (Dec. 31, 2013: $23,120 million), an increase of 4%. Current assets increased by 8% to $6,805 million (Dec. 31, 2013: $6,287 million). Non-current assets were $17,340 million (Dec. 31, 2013: $16,833 million), an increase of 3%. Total equity increased by 2% to $9,650 million (Dec. 31, 2013: $9,485 million). The equity ratio was 40% as compared to 41% at the end of 2013. Total debt was $9,139 million (Dec. 31, 2013: $8,417 million). As of June 30, 2014, the debt/EBITDA ratio was 3.1 (Dec. 31, 2013: 2.8).

Please refer to the attachments for a complete overview of the results for the second quarter and first half of 2014 and the reconciliation of non-GAAP financial measures included in this release to the most comparable GAAP financial measures.

Strategic investments in Care Coordination

Fresenius Medical Care has entered into an agreement to invest approximately $600 million in Sound Inpatient Physicians Inc. to become majority shareholder in a network of more than 1,000 physician partners providing care in over 100 hospitals and post-acute care centers across the United States. The transaction of Sound Inpatient Physicians Inc. has been closed in July 2014.

Fresenius Medical Care also acquired MedSpring Urgent Care Centers, with operations in Illinois and Texas. MedSpring’s 14 urgent care centers provide high-quality primary care and customer service.

Thereby the company executes on the strategy disclosed earlier this year to invest in care coordination around dialysis. The investment clearly advances the commitment to address the full spectrum of care for chronically ill patients.

Outlook

The company expects revenue to be at around $15.2 billion in 2014, translating into a growth rate of around 4%. This outlook excludes revenue of about $500 million from acquisitions.

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to be unchanged between $1.0 billion and $1.05 billion in 2014. The company initiated a global efficiency program designed to enhance the company’s performance over a multi-year period. Potential cost savings before income taxes of up to $60 million generated from this program are not included in the outlook for 2014.

For 2014, the company expects to spend around $900 million on capital expenditures. Reflecting mainly the latest acquisitions the company now expects an acquisition spending of around $1.0 billion for fiscal year 2014 (previously $400 million). As a consequence the debt/EBITDA ratio is expected to be around 3.0 by the end of 2014.

Conference call

Fresenius Medical Care will hold a conference call to discuss the results of the second quarter 2014 on Thursday, July 31, 2014, at 3.30 p.m. CEDT/ 9.30 a.m. EDT. The company invites investors to follow the live webcast of the call at the company’s website www.fmc-ag.com in the “Investor Relations” section. A replay will be available shortly after the call.

***

 

Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 2.5 million individuals worldwide. Through its network of 3,335 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatments for 280,942 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products.

Disclaimer

This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

 

***

]]>
news-157 Tue, 06 May 2014 10:46:00 +0200 Fresenius Medical Care reports first quarter 2014 results and confirms guidance for full year 2014 /en/media/news/details/detail/News/fresenius-medical-care-reports-first-quarter-2014-results-and-confirms-guidance-for-full-year-2014/
  • First quarter performance in line with full year guidance
  • North America influenced by sequestration and rebasing impact
  • International influenced by currency and delayed product sales
  • On track to achieve full year guidance - Accelerated medical and quality initiatives
  • First quarter 2014 key figures:

    Net revenue $3,564 million +3%
    Operating income (EBIT) $445 million -10%
    Net income attributable to shareholders of
    Fresenius Medical Care AG & Co. KGaA
    $205 million -9%
    Basic earnings per ordinary share $0.68 -7%

    “We can look back on a first quarter that was in line with our guidance for the full year,” said Rice Powell, chief executive officer of Fresenius Medical Care. “Based on our quarterly results, and on the continuous efforts we are making to increase profitability, we are able to confirm our full-year guidance. Moreover, by capitalizing on market opportunities in our core dialysis business and expanding in business areas like care coordination for dialysis, Fresenius Medical Care is well placed to meet the company’s ambitious long-term targets.”

    First quarter 2014

    Revenue

    Net revenue for the first quarter of 2014 increased by 3% to $3,564 million (+4% at constant currency) compared to the first quarter of 2013. Organic revenue growth worldwide was 3%. Dialysis services revenue grew by 4% to $2,782 million (+5% at constant currency) and dialysis product revenue decreased by 1% to $782 million (flat at constant currency) compared to the first quarter of 2013.

    North America revenue for the first quarter of 2014 increased by 5% to $2,393 million. Organic revenue growth was 4%. Dialysis services revenue grew by 5% to $2,201 million with a same store treatment growth of 3.3%. Dialysis product revenue increased by 5% to $192 million.

    International revenue decreased by 1% to $1,161 million (+4% at constant currency). Organic revenue growth was 3%. Dialysis services revenue increased by 1% to $581 million (+8% at constant currency). Dialysis product revenue decreased by 2% to $580 million (-1% at constant currency).

    Earnings

    Operating income (EBIT) for the first quarter of 2014 decreased by 10% to $445 million compared to $493 million in the first quarter of 2013. Operating income for North America for the first quarter of 2014 decreased by 8% to $336 million compared to $366 million in the first quarter of 2013. In the International segment, operating income for the first quarter of 2014 decreased by 6% to $180 million compared to $192 million in the first quarter of 2013.

    Net interest expense for the first quarter of 2014 was $96 million, compared to $104 million in the first quarter of 2013.

    Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the first quarter of 2014 was $205 million, a decrease of 9% compared to the corresponding number of $225 million for the first quarter of 2013.

    Income tax expense was $102 million for the first quarter of 2014 which translates into an effective tax rate of 29.1%. This compares to income tax expense of $129 million and a tax rate of 33.2% for the first quarter of 2013.

    Basic earnings per ordinary share (EPS) for the first quarter of 2014 was $0.68, a decrease of 7% compared to the corresponding number for the first quarter of 2013. The weighted average number of shares outstanding for the first quarter of 2014 was approximately 301.5 million shares, compared to 306.7 million shares for the first quarter of 2013. The decrease in shares outstanding resulted from last year`s share buy-back program, partially offset by stock option exercises in the past twelve months.

    Cash Flow

    In the first quarter of 2014, the company generated $112 million in net cash provided by operating activities, a decrease of 64% compared to the corresponding figure of last year and representing 3% of revenue.

    A total of $197 million was spent for capital expenditures, net of disposals. Free cash flow was -$85 million compared to $169 million in the first quarter of 2013.

    A total of $135 million in cash was spent for acquisitions and investments, net of divestitures. Free cash flow after investing activities was -$220 million, compared to $98 million in the first quarter of 2013.

    Employees

    As of March 31, 2014, Fresenius Medical Care had 91,542 employees (full-time equivalents) worldwide, compared to 86,855 employees at the end of March 2013. This increase of more than 4,500 employees was attributable to our continued organic growth as well as to acquisitions.

    Balance sheet structure

    The company´s total assets were $23,423 million (Dec. 31, 2013: $23,120 million), an increase of 1%. Current assets increased by 3% to $6,497 million (Dec. 31, 2013: $6,287 million). Non-current assets were $16,926 million (Dec. 31, 2013: $16,833 million), an increase of 1%. Total equity increased by 2% to $9,680 million (Dec. 31, 2013: $9,485 million). The equity ratio was 41%, unchanged compared to the ratio at the end of 2013. Total debt was $8,609 million (Dec. 31, 2013: $8,417 million). As of March 31, 2014, the debt/EBITDA ratio was 2.9 (Dec. 31, 2013: 2.8).

    Please refer to the attachments for a complete overview of the results for the first quarter 2014 and the reconciliation of non-GAAP financial measures included in this release to the most comparable GAAP financial measures.

    Changes in management board

    On March 12, 2014, the company announced the resignations of Prof. Emanuele Gatti, and Dr. Rainer Runte, both effective March 31, 2014, from the general partner’s management board. Dr. Gatti’s position on the management board and duties relating to Europe, Middle East and Africa have been assumed by Mr. Wehner, effective April 1, 2014, while Latin America region management duties have been assumed by Mr. John Anderson who reports directly to CEO Mr. Powell. Until such time as a permanent successor to Dr. Runte is named, Mr. David Kembel, chief compliance officer for Fresenius Medical Care North America, has assumed Dr. Runte’s responsibilities for Global Compliance on an interim basis and CEO Mr. Powell, as the chairman of the management board, has assumed Dr. Runte's remaining responsibilities, until the search for a General Counsel is complete.

    Long-term revenue target

    On April, 4 Fresenius Medical Care announced its long-term financial target for 2020. Based on revenue of $14.6 billion in fiscal year 2013, the company has set its ambitious revenue guidance for 2020 at $28 billion. This represents a cumulative average growth rate of around 10% per annum (CAGR) between 2015 and 2020 and a near doubling of revenue compared to 2013. Over the same period the company expects a high single digit increase in net income and EPS.

    Fresenius Medical Care’s world-leading position in the dialysis industry has been built on its vision and capabilities in developing innovations that shape the future of treatment for patients. Fresenius Medical Care will continue to develop innovative products focused on quality outcomes for the patient while expanding the company’s dialysis products and services around the world. In addition to strong growth in the underlying business of dialysis products and services, Fresenius Medical Care sees significant potential in a business area it began developing some years ago and now calls Care Coordination. Care Coordination is an extension of the company’s renal care for its patients and currently includes e.g. vascular care, laboratory and pharmacy businesses. By further integrating those services in the U.S. into the existing core business and thereby creating a high-performance renal network including risk based models and by the development of chronic care centers in the International segment, the company expects a significant improvement of patient care outcomes. Fresenius Medical Care plans to build this business segment and expects revenue from Care Coordination to grow from 3% of total revenue in 2013 to about 18% in 2020.

    Outlook

    The company expects revenue to be at around $15.2 billion in 2014, translating into a growth rate of around 4%.

    Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to be between $1.0 billion and $1.05 billion in 2014. The company initiated a global efficiency program designed to enhance the company’s performance over a multi-year period. Potential cost savings before income taxes of up to $60 million generated from this program are not included in the outlook for 2014.

    For 2014, the company expects to spend around $900 million on capital expenditures and around $400 million on acquisitions. The debt/EBITDA ratio is expected to be equal to or below 3.0 by the end of 2014.

    Conference call

    Fresenius Medical Care will hold a conference call to discuss the results of the first quarter 2014 on Tuesday, May 6, 2014, at 3.30 p.m. CEDT/ 9.30 a.m. EDT. The company invites investors to follow the live webcast of the call at the company’s website www.fmc-ag.com in the “Investor Relations” section. A replay will be available shortly after the call.

    Investor news

    Press release

    ***

    Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 2.5 million individuals worldwide. Through its network of 3,263 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatments for 270,570 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products.

    Disclaimer

    This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

    ***

     

    ]]>
    news-158 Tue, 25 Feb 2014 10:46:00 +0100 Fresenius Medical Care reports fourth quarter and full year 2013 results /en/media/news/details/detail/News/fresenius-medical-care-reports-fourth-quarter-and-full-year-2013-results/ Targets achieved for fiscal year 2013 - Further expansion of global franchise and new record level of revenue - Increased dividend to be proposed at the Annual General Meeting


    Fourth Quarter 2013 Key Figures: 

    Net revenue $3,867 million   +4%
    Operating income (EBIT) $661 million +18%
    Net income attributable to shareholders of
    Fresenius Medical Care AG & Co. KGaA
    $349 million +36%
    Basic earnings per ordinary share $1.16 +38%


    Full Year 2013 Key Figures:

    Net revenue $14,610 million +6%
    Operating income (EBIT) $2,256 million +2%
    Net income attributable to shareholders of
    Fresenius Medical Care AG & Co. KGaA
    $1,110million -6%
    Basic earnings per ordinary share $3.65-6%

     

    Dividend proposal:

    Ordinary share$0.77+3%

     

    Rice Powell, chief executive officer of Fresenius Medical Care, commented: “With a very strong fourth quarter, we completed a sound fiscal year 2013 and achieved the targets we set for ourselves. Despite the impact of the reimbursement cuts in the U.S. that were introduced last year we achieved another record in net revenue, supported by a continued excellent cash flow performance. Looking ahead we are faced with a challenging environment, in particular with structural changes due to growing pressure on reimbursement systems. In order to successfully meet these changes we are concentrating on measures aimed at enhancing our profitability in 2014 and beyond.


    Fourth Quarter 2013

    Revenue

    Net revenue for the fourth quarter of 2013 increased by 4% to $3,867 million (+5% at constant currency) compared to the fourth quarter of 2012. Organic revenue growth worldwide was 3%. Dialysis services revenue grew by 3% to $2,895 million (+4% at constant currency) and dialysis product revenue increased by 8% to $972 million (+8% at constant currency).

    North America revenue for the fourth quarter of 2013 increased by 3% to $2,507 million. Organic revenue growth was 1.5%. Dialysis services revenue grew by 3% to $2,288 million with a same store treatment growth of 3.4%. Dialysis product revenue increased by 6% to $219 million.

    International revenue increased by 6% to $1,351 million (+8% at constant currency). Organic revenue growth was 7%. Dialysis services revenue increased by 4% to $607 million (+8% at constant currency). Dialysis product revenue increased by 8% to $744 million (+8% at constant currency).

    Earnings

    Operating income (EBIT) for the fourth quarter of 2013 increased by 18% to $661 million compared to $559 million in the fourth quarter of 2012. Operating income for North America for the fourth quarter of 2013 increased by 7% to $446 million compared to $416 million in the fourth quarter of 2012. In the International segment, operating income for the fourth quarter of 2013 increased by 23% to $261 million compared to $212 million in the fourth quarter of 2012.

    Net interest expense for the fourth quarter of 2013 was $98 million, compared to $115 million in the fourth quarter of 2012. 

    Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the fourth quarter of 2013 was $349 million, an increase of 36% compared to the corresponding number of $257 million for the fourth quarter of 2012.

    Income tax expense was $171 million for the fourth quarter of 2013 which translates into an effective tax rate of 30.4%. This compares to income tax expense of $142 million and a tax rate of 32.1% for the fourth quarter of 2012.

    Basic earnings per ordinary share (EPS) for the fourth quarter of 2013 was $1.16, an increase of 38% compared to the corresponding number for the fourth quarter of 2012. The weighted average number of shares outstanding for the fourth quarter of 2013 was approximately 301.0 million shares, compared to 306.4 million shares for the fourth quarter of 2012. The decrease in shares outstanding resulted from the share buy-back program, which was completed in August 2013, partially offset by stock option exercises in the past twelve months.

    Cash Flow

    In the fourth quarter of 2013, the company generated $589 million in net cash provided by operating activities, an increase of 3% compared to the corresponding figure of last year and representing 15.2% of revenue.

    A total of $234 million was spent for capital expenditures, net of disposals. Free cash flow was $355 million (representing 9.2% of revenue) compared to $345 million in the fourth quarter of 2012.

    A total of $198 million in cash was spent for acquisitions, net of divestitures. Free cash flow after investing activities was $157 million, compared to $286 million in the fourth quarter of 2012.

    Full Year 2013

    Revenue and Earnings

    Net revenue for the full year 2013 increased by 6% to $14,610 million (+6% at constant currencies) compared to the full year 2012.

    Operating income (EBIT) for the full year 2013 increased by 2% to $2,256 million compared to $2,219 million in the full year 2012.

    Net interest expense for the full year 2013 was $409 million compared to $426 million for the full year 2012. For the full year 2013, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA was $1,110 million, down by 6% from the corresponding number of $1,187 million for the full year 2012.

    Income tax expense for the full year 2013 was $592 million which translates into an effective tax rate of 32.0%. This compares to income tax expense of $605 million and a tax rate of 31.3% for the full year 2012.

    In the full year of 2013, basic earnings per ordinary share (EPS) decreased by 6% to $3.65 compared to $3.89 for the full year 2012. The weighted average number of shares outstanding during the full year 2013 was approximately 303.8 million.

    Cash Flow

    Net cash provided by operating activities during the full year 2013 was $2,035 million (representing 13.9% of revenue) compared to $2,039 million for the same period in 2012.

    A total of $728 million in cash was spent for capital expenditures, net of disposals. Free cash flow for the full year 2013 was $1,307 million compared to $1,373 million in the same period in 2012.

    A total of $478 million in cash was spent for acquisitions, net of divestitures. Free cash flow after investing activities was $829 million compared to a negative $242 million in the full year 2012.

    Employees

    As of December 31, 2013, Fresenius Medical Care had 90,690 employees (full-time equivalents) worldwide, compared to 86,153 employees at the end of 2012. This increase of approximately 4,500 employees is due to overall growth in the company’s business and acquisitions.

    Balance sheet structure

    The company´s total assets were $23,120 million (Dec. 31, 2012: $22,326 million), an increase of 4%. Current assets increased by 3% to $6,287 million (Dec. 31, 2012: $6,127 million). Non-current assets were $16,833 million (Dec. 31, 2012: $16,199 million), an increase of 4%. Total equity increased by 3% to $9,485 million (Dec. 31, 2012: $9,207 million). The equity ratio was 41%, unchanged compared to the ratio at the end of 2012. Total debt was $8,417 million (Dec. 31, 2012: $8,298 million). As of December 31, 2013, the debt/EBITDA ratio was 2.8 (Dec. 31, 2012: 2.8).

    Please refer to the attachments for a complete overview of the results for the fourth quarter and full year 2013 and the reconciliation of non-GAAP financial measures included in this release to the most comparable GAAP financial measures.

    Dividend

    At the Annual General Meeting to be held on May 15, 2014, shareholders will be asked to approve a dividend of €0.77 per ordinary share, an increase of 3% from 2012 (€0.75). For the 17th consecutive year, shareholders can expect to receive an increased annual dividend.

    Outlook

    The company expects revenue to be at around $15.2 billion in 2014, translating into a growth rate of around 4%.

    Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to be between $1.0 billion and $1.05 billion in 2014. The company initiated a global efficiency program designed to enhance the company’s performance over a multi-year period. Potential cost savings before income taxes of up to $60 million generated from this program are not included in the outlook for 2014.

    For 2014, the company expects to spend around $900 million on capital expenditures and around $400 million on acquisitions. The debt/EBITDA ratio is expected to be equal to or below 3.0 by the end of 2014.

    Conference Call

    Fresenius Medical Care will hold a conference call to discuss the results of the fourth quarter and full year 2013 on Tuesday, February 25, 2014, at 3.30 p.m. CET/ 9.30 a.m. EST. The company invites investors to follow the live webcast of the call at the company’s website www.fmc-ag.com in the “Investor Relations” section. A replay will be available shortly after the call.

    Investor news

    Press release

     

    ***

    Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 2.5 million individuals worldwide. Through its network of 3,250 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatments for 270,122 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products.

    Disclaimer

    This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

    ***

     

     

    ]]>
    news-120 Tue, 05 Nov 2013 10:46:00 +0100 Fresenius Medical Care Reports Third Quarter And Nine Months 2013 Results /en/media/news/details/detail/News/fresenius-medical-care-reports-third-quarter-and-nine-months-2013-results/ Third Quarter 2013 Key Figures:
    Net revenue $3,666 million +7%
    Operating income (EBIT) $557 million -2%
    Adjusted operating income (EBIT) $576 million +2%
    Net income attributable to shareholders of
    Fresenius Medical Care AG & Co. KGaA
    $273 million +1%
    Adjusted net income attributable to shareholders of
    Fresenius Medical Care AG & Co. KGaA
    $285 million +6%
    Earnings per ordinary share $0.91 +3%
    Adjusted earnings per ordinary share $0.95+7%

     

    Nine Months 2013 Key Figures:

    Net revenue $10,743 million +6%
    Operating income (EBIT) $1,595 million -4%
    Adjusted operating income (EBIT) $1,625 million -1%
    Net income attributable to shareholders of
    Fresenius Medical Care AG & Co. KGaA
    $761 million -18%
    Adjusted net income attributable to shareholders of
    Fresenius Medical Care AG & Co. KGaA
    $783 million 0%
    Earnings per ordinary share $2.50 -18%
    Adjusted earnings per ordinary share $2.57 0%

     

    Bad Homburg, Germany – Fresenius Medical Care AG & Co. KGaA (the “company” or “Fresenius Medical Care”; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world’s largest provider of dialysis products and services, today announced its results for the third quarter and first nine months of 2013.

    Rice Powell, chief executive officer of Fresenius Medical Care, commented: “Given the economic challenges we continue to face, we can be satisfied with our business performance in the third quarter, specifically with the strong organic revenue growth of 6%. As indicated after the second quarter we expected the second half of the year to be stronger to achieve our guidance for 2013. And there is no doubt that we need a very strong fourth quarter to get there. We will continue to grow our business and expand our renal network, and with this we will be best positioned for future success.”

    Third Quarter 2013:

    Revenue

    Net revenue for the third quarter of 2013 increased by 7% to $3,666 million (+8% at constant currency) compared to the third quarter of 2012. Organic revenue growth worldwide was 6%. Dialysis services revenue grew by 8% to $2,813 million (+9% at constant currency) and dialysis product revenue increased by 5% to $853 million (+4% at constant currency).

    North America revenue for the third quarter of 2013 increased by 8% to $2,436 million. Organic revenue growth was 6%. Dialysis services revenue grew by 9% to $2,224 million with a same store treatment growth of 3.5%. Dialysis product revenue increased by 5% to $212 million.

    International revenue increased by 5% to $1,222 million (+6% at constant currency). Organic revenue growth was 4%. Dialysis services revenue increased by 5% to $589 million (+8% at constant currency). Dialysis product revenue increased by 5% to $633 million (+4% at constant currency).

    Earnings

    Operating income (EBIT) for the third quarter of 2013 decreased by 2% to $557 million compared to $568 million in the third quarter of 2012. Operating income for North America for the third quarter of 2013 decreased by 1% to $416 million compared to $420 million in the third quarter of 2012. In the International segment, operating income for the third quarter of 2013 increased by 5% to $204 million compared to $195 million in the third quarter of 2012.

    Adjusted for the impact from the budget cuts in the U.S. (sequestration), that were effectively introduced in April 2013, the operating income for the third quarter of 2013 increased by 2% to $576 million.

    Net interest expense for the third quarter of 2013 was $103 million, compared to $108 million in the third quarter of 2012.

    Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the third quarter of 2013 was $273 million, an increase of 1% compared to the corresponding number of $270 million for the third quarter of 2012. Adjusted for the net of tax effects of the special item mentioned above, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the third quarter of 2013 increased by 6% to $285 million.

    Income tax expense was $148 million for the third quarter of 2013 which translates into an effective tax rate of 32.6%. This compares to income tax expense of $153 million and a tax rate of 33.3% for the third quarter of 2012.

    Earnings per ordinary share (EPS) for the third quarter of 2013 was $0.91, an increase of 3% compared to the corresponding number for the third quarter of 2012. Adjusted for the special item mentioned above, EPS for the third quarter of 2013 increased by 7% to $0.95. The weighted average number of shares outstanding for the third quarter of 2013 was approximately 301.3 million shares, compared to 305.5 million shares for the third quarter of 2012. The decrease in shares outstanding resulted from the effect of the share buy-back program, which was fully completed in August 2013, partially offset by stock option exercises in the past twelve months.

    Cash Flow

    In the third quarter of 2013, the company generated $605 million in cash from operations, an increase of 13% compared to the corresponding figure of last year and representing 16.5% of revenue.

    A total of $175 million was spent for capital expenditures, net of disposals. Free cash flow before acquisitions was $430 million (representing 11.7% of revenue) compared to $371 million in the third quarter of 2012.

    A total of $195 million in cash was spent for acquisitions and investments, net of divestitures. Free cash flow after acquisitions and divestitures was $235 million, compared to $334 million in the third quarter of 2012.

    First Nine Months 2013:

    Revenue and Earnings

    Net revenue for the first nine months of 2013 increased by 6% to $10,743 million (+7% at constant currencies) compared to the first nine months of 2012.

    Operating income (EBIT) for the first nine months of 2013 decreased by 4% to $1,595 million compared to $1,659 million in the first nine months of 2012. Adjusted for special items related to the acquisition of Liberty Dialysis Holdings Inc. and the impact from sequestration the operating income for the first nine months of 2013 decreased by 1% to $1,625 million compared to $1,645 million for the first nine months of 2012.

    Net interest expense for the first nine months of 2013 was $310 million compared to $311 million for the first nine months of 2012.

    For the first nine months of 2013, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA was $761 million, down by 18% from the corresponding number of $930 million for the first nine months of 2012. Adjusted for the net of tax effects of the special items mentioned above, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the first nine months of 2013 was $783 million as compared to $784 million for the first nine months of 2012.

    Income tax expense for the first nine months of 2013 was $421 million which translates into an effective tax rate of 32.8%. This compares to income tax expense of $462 million and a tax rate of 31.1% for the first nine months of 2012.

    In the first nine months of 2013, earnings per ordinary share (EPS) decreased by 18% to $2.50 compared to $3.05 for the first nine months of 2012. Adjusted for the special items mentioned above, EPS for the first nine months of 2013 remained unchanged at $2.57 compared to the first nine months of 2012. The weighted average number of shares outstanding during the first nine months of 2013 was approximately 304.7 million.

    Cash Flow

    Cash from operations during the first nine months of 2013 was $1,446 million (representing 13.5% of revenue) compared to $1,467 million for the same period in 2012.

    A total of $494 million in cash was spent for capital expenditures, net of disposals. Free cash flow before acquisitions for the first nine months of 2013 was $952 million compared to $1,029 million in the same period in 2012. A total of $279 million in cash was spent for acquisitions, net of divestitures. Free cash flow after acquisitions and divestitures was $673 million compared to a negative $528 million in the first nine months of last year.

    Please refer to the attachments for a complete overview of the results for the third quarter and first nine months of 2013 and the reconciliation of non-GAAP financial measures included in this release to the most comparable GAAP financial measures.

    Patients - Clinics - Treatments

    As of September 30, 2013, Fresenius Medical Care treated 265,824 patients worldwide, which represents an increase of 4% compared to the previous year’s figure. North America provided dialysis treatments for 168,893 patients, an increase of 3% compared to the corresponding number for 2012. The International segment provided dialysis treatments for 96,931 patients, an increase of 4% over the prior year’s figure.

    As of September 30, 2013, the company operated a total of 3,225 clinics worldwide, an increase of 3% compared to the corresponding number for 2012. The number of clinics is comprised of 2,116 clinics in North America (+3%) and 1,109 clinics in the International segment (+3%).

    During the first nine months of 2013, Fresenius Medical Care delivered approximately 30.03 million dialysis treatments worldwide. This represents an increase of 5% compared to the previous year’s figure. North America accounted for 19.04 million treatments, an increase of 5%. The International segment delivered 10.99 million treatments, an increase of 4%.

    Employees

    As of September 30, 2013, Fresenius Medical Care had 89,282 employees (full-time equivalents) worldwide, compared to 86,153 employees at the end of 2012.

    Debt/EBITDA Ratio

    The ratio of debt to earnings before interest, taxes, depreciation and amortization (EBITDA) slightly increased from 2.92 at the end of the second quarter of 2013 to 2.94 at the end of the third quarter of 2013.

    Rating

    Standard & Poor’s rates the company’s corporate credit as ‘BB+’, with a ‘positive’ outlook. Moody's rates the company’s corporate credit as ‘Ba1’ with a ‘stable’ outlook. Fitch Ratings is currently reviewing Fresenius Medical Care’s ratings.

    Share buy-back program

    Fresenius Medical Care`s share buy-back program was completed on August 14, 2013. The company bought back a total number of approximately 7.5 million shares with an aggregate value of €385 million (approximately $500 million). The program was financed from cash flow and existing credit facilities.

    Guidance for 2013 confirmed

    The company expects revenue to grow to more than $14.6 billion in 2013, translating into a growth rate of more than 6%.

    Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to be between $1.1 billion and $1.15 billion in 2013, likely at the low end of the range.

    For 2013, the company expects to spend around $700 million on capital expenditures and around $500 million on acquisitions. The debt/EBITDA ratio is expected to be equal or below 3.0 by the end of 2013.

    Conference Call

    Fresenius Medical Care will hold a conference call to discuss the results of the third quarter and first nine months of 2013 on Tuesday, November 5, 2013, at 3.30 p.m. CET / 9.30 a.m. EST. The company invites investors to follow the live webcast of the call at the company’s website www.fmc-ag.com in the “Investor Relations” section. A replay will be available shortly after the call.

    Investor news

    Press release

     

    ***

    Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 2.3 million individuals worldwide. Through its network of 3,225 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatments for 265,824 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products.

    Disclaimer
    This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

    ***

     

     

    ]]>
    news-121 Tue, 30 Jul 2013 10:46:00 +0200 Fresenius Medical Care Reports Second Quarter And Half Year 2013 Results /en/media/news/details/detail/News/fresenius-medical-care-reports-second-quarter-and-half-year-2013-results/ Second Quarter 2013 Key Figures:

     

    Net revenue $3,613 million +5%
    Operating income (EBIT) $544 million -8%
    Adjusted operating income (EBIT) $555 million -2%
    Net income attributable to shareholders of
    Fresenius Medical Care AG & Co. KGaA
    $263 million -9%
    Adjusted net income attributable to shareholders of
    Fresenius Medical Care AG & Co. KGaA
    $272 million +2%
    Earnings per ordinary share $0.86-10%
    Adjusted earnings per ordinary share $0.89+2%


    First Half 2013 Key Figures:


    Net revenue $7,076 million +6%
    Operating income (EBIT) $1,038 million -5%
    Adjusted operating income (EBIT) $1,049 million -3%
    Net income attributable to shareholders of
    Fresenius Medical Care AG & Co. KGaA
    $488 million -26%
    Adjusted net income attributable to shareholders of
    Fresenius Medical Care AG & Co. KGaA
    $498 million -3%
    Earnings per ordinary share $1.59-27%
    Adjusted earnings per ordinary share $1.62-4%

     

    Bad Homburg, Germany – Fresenius Medical Care AG & Co. KGaA (the “company” or “Fresenius Medical Care”; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world’s largest provider of dialysis products and services, today announced its results for the second quarter and first half of 2013.

    Second Quarter 2013:

    Revenue

    Net revenue for the second quarter of 2013 increased by 5% to $3,613 million (+6% at constant currency) compared to the second quarter of 2012. Organic revenue growth worldwide was 5%. Dialysis services revenue grew by 5% to $2,743 million (+6% at constant currency) and dialysis product revenue increased by 6% to $870 million (+5% at constant currency).

    North America revenue for the second quarter of 2013 increased by 6% to $2,375 million. Organic revenue growth was 5%. Dialysis services revenue grew by 6% to $2,157 million with a same store treatment growth of 4%. Dialysis product revenue increased by 6% to $218 million.

    International revenue increased by 5% to $1,228 million (+6% at constant currency). Organic revenue growth was 5%. Dialysis services revenue increased by 4% to $586 million (+7% at constant currency). Dialysis product revenue increased by 5% to $642 million (+5% at constant currency).

    Earnings

    Operating income (EBIT) for the second quarter of 2013 decreased by 8% to $544 million compared to $589 million in the second quarter of 2012. The operating income for North America for the second quarter of 2013 decreased by 9% to $394 million compared to $431 million in the second quarter of 2012. In the International segment, the operating income for the second quarter of 2013 increased by 1% to $209 million compared to $207 million in the second quarter of 2012.

    Adjusted for special items related to the acquisition of Liberty Dialysis Holdings Inc. and the impact from the budget cuts in the U.S. (sequestration) that were effectively introduced in April 2013, the operating income for the second quarter of 2013 decreased by 2% to $555 million compared to $568 million in the second quarter of 2012.

    Net interest expense for the second quarter of 2013 was $103 million, compared to $104 million in the second quarter of 2012.

    Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the second quarter of 2013 was $263 million, a decrease of 9% compared to the corresponding number of $289 million for the second quarter of 2012. Adjusted for the net of tax effects of the special items mentioned above, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the second quarter of 2013 increased by 2% to $272 million compared to $266 million for the second quarter of 2012.

    Income tax expense was $144 million for the second quarter of 2013 which translates into an effective tax rate of 32.6%. This compares to income tax expense of $172 million and a tax rate of 34.6% for the second quarter of 2012. Adjusted for the special items mentioned above, the tax rate for the second quarter of 2013 was 32.1% as compared to 34.4% for the second quarter of 2012.

    Earnings per ordinary share (EPS) for the second quarter of 2013 was $0.86, a decrease of 10% compared to the corresponding number for the second quarter of 2012. Adjusted for the special items mentioned above, EPS for the second quarter of 2013 increased by 2% to $0.89 compared to $0.88 for the second quarter of 2012. The weighted average number of shares outstanding for the second quarter of 2013 was approximately 306.3 million shares, compared to 304.4 million shares for the second quarter of 2012. The increase in shares outstanding mainly resulted from stock option exercises in the past twelve months, partially offset by the effect of the share buy-back program.

    Cash Flow

    In the second quarter of 2013, the company generated $525 million in cash from operations, an increase of 16% compared to the corresponding figure of last year and representing 14.5% of revenue.

    A total of $173 million was spent for capital expenditures, net of disposals. Free cash flow before acquisitions was $352 million (representing 9.8% of revenue) compared to $300 million in the second quarter of 2012.

    A total of $13 million in cash was spent for acquisitions and investments, net of divestitures. Free cash flow after acquisitions and divestitures was $339 million, compared to $306 million in the second quarter of 2012.

    First Half 2013:

    Revenue and Earnings

    Net revenue for the first half of 2013 increased by 6% to $7,076 million (+6% at constant currencies) compared to the first half of 2012. Organic revenue growth was 5% in the first half of 2013.

    Operating income (EBIT) for the first half of 2013 decreased by 5% to $1,038 million compared to $1,092 million in the first half of 2012. Adjusted for special items related to the acquisition of Liberty Dialysis Holdings Inc. and the impact from sequestration the operating income for the first half of 2013 decreased by 3% to $1,049 million compared to $1,078 million for the first half of 2012.

    Net interest expense for the first half of 2013 was $207 million compared to $203 million in the same period of 2012.

    For the first half of 2013, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA was $488 million, down by 26% from the corresponding number of $660 million for the first half of 2012. Adjusted for the net of tax effects of the special items mentioned above, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the first half of 2013 decreased by 3% to $498 million compared to $514 million for the first half of 2012.

    Income tax expense for the first half of 2013 was $273 million which translates into an effective tax rate of 32.8%. This compares to income tax expense of $309 million and a tax rate of 30.1% for the first half of 2012. Adjusted for the special items mentioned above, the tax rate for the first half of 2013 was 32.6% as compared to 33.8% for the first half of 2012.

    In the first half of 2013, earnings per ordinary share decreased by 27% to $1.59 compared to $2.17 for the first half of 2012. Adjusted for the special items mentioned above, EPS for the first half of 2013 decreased by 4% to $1.62 compared to $1.69 for the first half of 2012. The weighted average number of shares outstanding during the first half of 2013 was approximately 306.5 million.

    Cash Flow

    Cash from operations during the first half of 2013 was $841 million compared to $932 million for the same period in 2012, representing 11.9% of revenue.

    A total of $319 million in cash was spent for capital expenditures, net of disposals. Free cash flow before acquisitions for the first half of 2013 was $522 million compared to $658 million in the same period in 2012. A total of $84 million in cash was spent for acquisitions, net of divestitures. Free cash flow after acquisitions and divestitures was $438 million compared to minus $862 million in the first half of last year.

    Please refer to the attachments for a complete overview on the second quarter and first half of 2013 and the reconciliation of non-GAAP financial measures included in this release to the most comparable GAAP financial measures.

    Patients - Clinics - Treatments

    As of June 30, 2013, Fresenius Medical Care treated 264,290 patients worldwide, which represents an increase of 3% compared to the previous year’s figure. North America provided dialysis treatments for 168,160 patients, an increase of 3% compared to the corresponding number for 2012. The International segment provided dialysis treatments for 96,130 patients, an increase of 4% over the prior year’s figure.

    As of June 30, 2013, the company operated a total of 3,212 clinics worldwide, an increase of 3% compared to the corresponding number for 2012. The number of clinics is comprised of 2,104 clinics in North America (+3%) and 1,108 clinics in the International segment (+3%).

    During the first half of 2013, Fresenius Medical Care delivered approximately 19.7 million dialysis treatments worldwide. This represents an increase of 5% compared to the previous year’s figure. North America accounted for 12.5 million treatments, an increase of 5%. The International segment delivered 7.2 million treatments, an increase of 3%.

    Employees

    As of June 30, 2013, Fresenius Medical Care had 87,944 employees (full-time equivalents) worldwide, compared to 86,153 employees at the end of 2012.

    Debt/EBITDA Ratio

    The ratio of debt to earnings before interest, taxes, depreciation and amortization (EBITDA) decreased from 2.92 at the end of the second quarter of 2012 to 2.91 at the end of the second quarter of 2013.

    Rating

    Standard & Poor’s rates the company’s corporate credit as ‘BB+’, with a ‘positive’ outlook. Moody's rates the company’s corporate credit as ‘Ba1’ with a ‘stable’ outlook. During the second quarter, Fitch has raised the outlook from ‘stable’ to ‘positive’. Fitch continues to rate the company’s corporate credit as ‘BB+'.

    Share buy-back program

    Fresenius Medical Care has started the share buy-back program on May 20, 2013. The company intends to repurchase ordinary shares with an aggregate value of up to €385 million (approximately $500 million). The program is expected to run into the third quarter of 2013. As of June 30, 2013, around 3.58 million shares were repurchased in the amount of approximately €190 million (~$249 million).

    Conversion of preference shares

    At the annual general meeting and in a separate meeting of preference shareholders the shareholders approved the mandatory conversion of all preference shares into ordinary shares on a 1:1 basis. This conversion was finalized on June 28, 2013.

    Guidance for 2013 confirmed

    The company expects revenue to grow to more than $14.6 billion in 2013, translating into a growth rate of more than 6%.

    In April 2013 budget cuts in the U.S. (sequestration) were effectively introduced. We do not assume that these measurements will be revised this year. Therefore the net income guidance range has been confirmed and has been substantiated for the potential impact from sequestration on our business performance. Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to be between $1.1 billion and $1.15 billion in 2013.

    For 2013, the company expects to spend around $700 million on capital expenditures and around $500 million on acquisitions.The debt/EBITDA ratio is expected to be equal or below 3.0 by the end of 2013.

    Rice Powell, chief executive officer of Fresenius Medical Care, commented: “Our second quarter results show a mixed picture. On the one hand, we have seen an accelerated growth of our business while on the other hand we were faced with the general budget cuts in the U.S. which affected our operating income performance. Nevertheless, we were able to show an earnings increase in the second quarter on an adjusted basis. To stay ahead of our competition given the challenging environment, we are rigorously focusing on our company-wide Global Efficiency Program that we initiated at the beginning of the year.”

    Conference Call

    Fresenius Medical Care will hold a conference call to discuss the results of the second quarter and first half of 2013 on Tuesday, July 30, 2013, at 3.30 p.m. CEDT / 9.30 a.m. EDT. The company invites investors to follow the live webcast of the call at the company’s website www.fmc-ag.com in the “Investor Relations” section. A replay will be available shortly after the call.

    Investor news

    Press release

     

    ***

    Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 2.3 million individuals worldwide. Through its network of 3,212 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatments for 264,290 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products.

    Disclaimer
    This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

    ***

     

    ]]>
    news-128 Tue, 30 Apr 2013 10:46:00 +0200 Fresenius Medical Care Reports First Quarter 2013 Results And Confirms Guidance For Full Year 2013 /en/media/news/details/detail/News/fresenius-medical-care-reports-first-quarter-2013-results-and-confirms-guidance-for-full-year-2013/ First Quarter Key Figures:
    Net revenue $3,464 million +7%
    Operating income (EBIT) $493 million -2%
    Net income attributable to shareholders of
    Fresenius Medical Care AG & Co. KGaA
    $225 million -39%
    Earnings per share $0.74-40%

     

    Bad Homburg, Germany - Fresenius Medical Care AG & Co. KGaA (“the company” or “Fresenius Medical Care”; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world’s largest provider of dialysis products and services, today announced its results for the first quarter of 2013.

    Revenue

    Net revenue for the first quarter of 2013 increased by 7% to $3,464 million (+7% at constant currency) compared to the first quarter of 2012. Organic revenue growth worldwide was 4%. Dialysis services revenue grew by 8% to $2,678 million (+9% at constant currency) and dialysis product revenue increased by 2% to $786 million (+2% at constant currency).

    North America revenue for the first quarter of 2013 increased by 9% to $2,287 million. Dialysis services revenue grew by 10% to $2,104 million with a same store treatment growth of 4%. Average revenue per treatment for U.S. services increased to $359 in the first quarter of 2013 compared to $353 for the corresponding quarter in 2012. Dialysis product revenue decreased by 2% to $183 million.

    International revenue increased by 3% to $1,169 million (+4% at constant currency). Organic revenue growth was 5%. Dialysis services revenue increased by 3% to $574 million (+5% at constant currency). Dialysis product revenue increased by 3% to $595 million (+3% at constant currency).

    Earnings

    Operating income (EBIT) for the first quarter of 2013 decreased by 2% to $493 million compared to $503 million in the first quarter of 2012. This resulted in an operating margin of 14.2% for the first quarter of 2013 as compared to 15.5% for the corresponding quarter in 2012.

    The operating margin for North America decreased from 16.5% to 16.1%. This development was impacted by higher personnel expenses and two less dialysis days in the first quarter of 2013 as compared to the first quarter of 2012. Average costs per treatment for U.S. services increased to $294 in the first quarter of 2013 as compared to $286 in the first quarter of 2012.

    In the International segment, the operating margin decreased from 17.2% to 15.7%. The margin development was negatively influenced mainly by the devaluation of the Venezuelan Bolivar.

    Net interest expense for the first quarter of 2013 was $104 million, compared to $99 million in the first quarter of 2012. This development was positively influenced by lower interest rates but offset by lower interest income as a result of the retirement of a loan associated with the acquisition of Liberty Dialysis Holdings, Inc.

    Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the first quarter of 2013 was $225 million, a decrease of 39% compared to the corresponding number for the first quarter of 2012. Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA decreased by 8% in the first quarter of 2013 if compared to the adjusted net income number of $244 million for the first quarter of 2012 excluding an investment gain of $127 million.

    Income tax expense was $129 million for the first quarter of 2013 and translating into an effective tax rate of 33.2%. This compares to income tax expense of $137 million and a tax rate of 25.8% and, excluding the investment gain, an adjusted effective tax rate of 33.9% for the first quarter of 2012.

    Earnings per ordinary share (EPS) for the first quarter of 2013 was $0.74, a decrease of 40% compared to the corresponding number for the first quarter of 2012. EPS decreased by 8% in the first quarter of 2013 if compared to an adjusted EPS number of $0.80, excluding the investment gain, for the first quarter of 2012. The weighted average number of shares outstanding for the first quarter of 2013 was approximately 306.7 million shares, compared to 304.2 million shares for the first quarter of 2012. The increase in shares outstanding resulted from stock option exercises in the past twelve months.

    Cash Flow

    In the first quarter of 2013, the company generated $315 million in cash from operations, a decrease of 34% compared to the corresponding figure of last year and representing 9.1% of revenue.

    A total of $146 million was spent for capital expenditures, net of disposals. Free cash flow before acquisitions was $169 million (representing 4.9% of revenue) compared to $359 million in the first quarter of 2012. A total of $71 million in cash was spent for acquisitions and investments, net of divestitures. Free cash flow after acquisitions and divestitures was $98 million, compared to minus $1,167 million in the first quarter of 2012.

    Please refer to the attachments for a complete overview on the first quarter of 2013 and the reconciliation of non-GAAP financial measures included in this release to the most comparable GAAP financial measures.

    Patients - Clinics - Treatments

    As of March 31, 2013, Fresenius Medical Care treated 261,648 patients worldwide, which represents an increase of 3% compared to the previous year’s figure. North America provided dialysis treatments for 167,233 patients, an increase of 3% compared to the corresponding number for 2012. The International segment provided dialysis treatments for 94,415 patients, an increase of 3% over the prior year’s figure.

    As of March 31, 2013, the company operated a total of 3,180 clinics worldwide, an increase of 2% compared to the corresponding number for 2012. The number of clinics is comprised of 2,090 clinics in North America (+2%) and 1,090 clinics in the International segment (+2%).

    During the first quarter of 2013, Fresenius Medical Care delivered approximately 9.7 million dialysis treatments worldwide. This represents an increase of 5% compared to the previous year’s figure. North America accounted for 6.1 million treatments, an increase of 7%. The International segment delivered 3.5 million treatments, an increase of 2%.

    Employees

    As of March 31, 2013, Fresenius Medical Care had 86,855 employees (full-time equivalents) worldwide, compared to 86,153 employees at the end of 2012.

    Debt/EBITDA Ratio

    The ratio of debt to earnings before interest, taxes, depreciation and amortization (EBITDA) decreased from 2.96 at the end of the first quarter of 2012 to 2.78 at the end of the first quarter of 2013. The debt/EBITDA ratio at the end of 2012 was 2.83.

    Rating

    Standard & Poor’s rates the company’s corporate credit as ‘BB+’, with a ‘positive’ outlook. Moody's rates the company’s corporate credit as ‘Ba1’ with a ‘stable’ outlook. Fitch rates the company’s corporate credit as ‘BB+’ with a ‘stable’ outlook.

    Share buy-back program and simplification of capital structure

    The management board and the supervisory board have approved a share buy-back program with an aggregate value of up to €385 million. The program will be financed from cash flow and existing credit facilities.

    The boards also approved a proposal to optimize the organization’s capital structure by the mandatory conversion of all preference shares into ordinary shares on a 1:1 basis. The preference shares currently represent approximately 1.3% of the company’s total share capital. At its upcoming annual general meeting and in a separate meeting of preference shareholders the company will ask its shareholders to approve this conversion.

    Guidance for 2013 confirmed

    For the full year 2013, the company confirms its revenue and earnings outlook.

    The company expects revenue to grow to more than $14.6 billion in 2013, translating into a growth rate of more than 6%.

    Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to be between $1.1 billion and $1.2 billion in 2013. This represents an increase of between 5% and 15% if compared to the net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for 2012 excluding an investment gain in the amount of $140 million. As we previously disclosed, the range of our net income guidance considers the U.S. government reversing the effect of sequestration for the calendar year. If this takes place it represents approximately $45 million in net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA. It is possible that the U.S. government may modify all or a portion of this but the likelihood of this diminishes as the year progresses.

    For 2013, the company expects to spend around $700 million on capital expenditures and around $300 million on acquisitions. The debt/EBITDA ratio is expected to be equal or below 3.0 by the end of 2013.

    Rice Powell, chief executive officer of Fresenius Medical Care, commented: “In a challenging, uncertain environment we delivered solid first quarter results led by the continuous growth in our dialysis services business in North America. Also of note is that we are confident meeting our guidance range for the full year, although we are not completely satisfied with our growth internationally in the first quarter of 2013. Along with the outstanding efforts of our talented people, we will continue to further strengthen our business to deliver sustainable growth and meaningful innovations for reliable high quality products to dialysis patients around the world.”

    Conference Call

    Fresenius Medical Care will hold a conference call to discuss the results of the first quarter of 2013 on Tuesday, April 30, 2013, at 3:30 p.m. CEDT / 9:30 a.m. EDT. The company invites investors to follow the live webcast of the call at the company’s website www.fmc-ag.com in the “Investor Relations” section. A replay will be available shortly after the call.

    Investor news

    Press release

     

    ***

    Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 2.3 million individuals worldwide. Through its network of 3,180 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatments for 261,648 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products.

    Disclaimer
    This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

    ***

     

    ]]>
    news-136 Tue, 26 Feb 2013 10:46:00 +0100 Fresenius Medical Care Reports Strong Fourth Quarter And Full Year 2012 Results In Line With Guidance /en/media/news/details/detail/News/fresenius-medical-care-reports-strong-fourth-quarter-and-full-year-2012-results-in-line-with-guidance/ Full Year 2012 Summary:

     Reported

    Net revenue $13,800 million +10%
    Operating income (EBIT) $2,219 million +7%
    Net income attributable to shareholders of
    Fresenius Medical Care AG & Co. KGaA
    $1,187 million +11%
    Earnings per ordinary share $3.89+10%

    Adjusted1

    Operating income (EBIT)$2,329 million +12%
    Net income attributable to shareholders of
    Fresenius Medical Care AG & Co. KGaA
    $1,118 million +4%
    Earnings per ordinary share $3.66+4%

     

     Dividend proposal

    Ordinary share 0.75+9%
    Operating income (EBIT) 0.77+8%

    1 Fresenius Medical Care´s net income guidance for 2012 was based on adjusted numbers. For further details see page 9 and 10 of the investor news (see download box).

    Bad Homburg, Germany – Fresenius Medical Care AG & Co. KGaA (the “company” or “Fresenius Medical Care”; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world’s largest provider of dialysis products and services, today announced its results for the fourth quarter and full year 2012.

    Fourth Quarter of 2012:

    Revenue

    Net revenue for the fourth quarter of 2012 increased by 13% to $3,706 million (+14% at constant currency) compared to the fourth quarter of 2011. Organic revenue growth worldwide was 8%. Dialysis services revenue grew by 18% to $2,804 million (+19% at constant currency) and dialysis product revenue increased by 2% to $902 million and increased by 4% at constant currency.

    North America revenue for the fourth quarter of 2012 increased by 19% to $2,429 million. Dialysis services revenue grew by 22% to $2,222 million with a same store growth of 4%. Average revenue per treatment for U.S. services increased to $368 in the fourth quarter of 2012 compared to $351 for the corresponding quarter in 2011. Dialysis product revenue decreased by 3% to $207 million.

    International revenue increased by 4% to $1,270 million and increased by 6% at constant currency. Organic revenue growth was 6%. Dialysis services revenue increased by 5% to $582 million and increased by 8% at constant currency. Dialysis product revenue increased by 3% to $688 million and increased by 5% at constant currency.

    Earnings

    Operating income (EBIT) for the fourth quarter of 2012 decreased by 5% to $559 million compared to $587 million in the fourth quarter of 2011. The operating income includes charges in the amount of $110 million related to the amendment of the agreement for our iron product Venofer in North America and a donation to the American Society of Nephrology. Excluding those charges the operating income for the fourth quarter increased by 14% to $ 669 million, translating into an operating margin of 18.1% for the fourth quarter of 2012 as compared to 18.0% for the corresponding quarter in 2011.

    Excluding the above mentioned charges, the operating margin for North America increased from 19.6% to 21.2%. Average costs per treatment for U.S. services increased to $286 in the fourth quarter of 2012 as compared to $279 in the fourth quarter of 2011. In the International segment, the operating margin decreased from 18.7% to 16.7%.

    Net interest expense for the fourth quarter of 2012 was $115 million, compared to $82 million in the fourth quarter of 2011. This development was mainly attributable to the higher level of indebtedness as a result of the issuance of various tranches of senior notes over the course of 2011 and 2012 to finance dialysis clinic acquisitions.

    Income tax expense was $143 million for the fourth quarter of 2012 compared to $165 million in the fourth quarter of 2011, reflecting effective tax rates of 32.1% and 32.7%, respectively.

    Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the fourth quarter of 2012 was $257 million, a decrease of 17% compared to the corresponding quarter of 2011. Excluding after tax charges in the amount of $71 million related to the amendment of the agreement for Venofer and a donation to the American Society of Nephrology, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the fourth quarter was $327 million, an increase of 5%.

    Earnings per ordinary share (EPS) for the fourth quarter of 2012 was $0.84 compared to $1.02 for the fourth quarter of 2011. The weighted average number of shares outstanding for the fourth quarter of 2012 was approximately 306.4 million shares, compared to 303.9 million shares for the fourth quarter of 2011. The increase in shares outstanding resulted from stock option exercises in the past 12 months. Excluding the above mentioned charges earnings per ordinary share for the fourth quarter 2012 was $1.07.

    Cash Flow

    In the fourth quarter of 2012, the company generated $572 million in cash from operations, an increase of 15% compared to the corresponding figure last year and representing 15.4% of revenue. The cash flow generation was mainly supported by the favorable development of working capital items.

    A total of $227 million was spent for capital expenditures, net of disposals. Free cash flow before acquisitions was $345 million (representing 9.3% of revenue) compared to $306 million in the fourth quarter of 2011. A total of $59 million in cash was spent for acquisitions and investments, net of divestitures. Free cash flow after acquisitions and divestitures was $286 million, compared to minus $298 million in the fourth quarter of 2011.

    Full Year 2012:

    Revenue and Earnings

    Net revenue for the full year 2012 increased by 10% to $13,800 million (+12% at constant currency) compared to the full year 2011. Organic revenue growth worldwide was 5%.

    Operating income (EBIT) for the full year 2012 increased by 7% to $2,219 million compared to $2,075 million for the full year 2011. The operating income includes charges in the amount of $110 million related to the amendment of the agreement for Venofer and a donation to the American Society of Nephrology. Excluding those charges the operating income for the full year 2012 increased by 12% to $2,329 million, translating into an operating margin of 16.9% as compared to 16.5% for the full year 2011.

    Net interest expense for the full year 2012 was $426 million compared to $297 million in the same period of 2011.

    For the full year 2012, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increased by 11% to $1,187 million. This includes a non-taxable investment gain of $140 million related to the acquisition of Liberty Dialysis Holdings, Inc., including its 51% stake in Renal Advantage Partners, LLC (RAI). The gain is a result of measuring the 49% equity interest in RAI held by the company at its fair value at the time of the Liberty acquisition. It also includes after tax charges in the amount of $71 million related to the amendment of the agreement for Venofer and a donation to the American Society of Nephrology. Excluding the investment gain and the before mentioned charges net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA was $1,118 million, an increase of 4% compared to 2011.

    Income tax expense for the full year 2012 was $605 million compared to $601 million in the same period in 2011, reflecting effective tax rates of 31.3% and 33.8%, respectively.

    In the full year 2012, earnings per ordinary share rose by 10% to $3.89. The weighted average number of shares outstanding during the full year 2012 was approximately 305.1 million compared to 303.0 million shares for the full year 2011. Excluding the investment gain and the above mentioned charges earnings per ordinary share was $3.66.

    Cash Flow

    For the full year 2012, the company generated $2,039 million in cash from operations, an increase of 41% compared to the corresponding figure last year and representing 14.8% of revenue.

    A total of $666 million in cash was spent for capital expenditures, net of disposals. Free cash flow before acquisitions for the full year 2012 was $1,373 million compared to $876 million in the same period in 2011. A total of $1,615 million in cash was spent for acquisitions, net of divestitures. Free cash flow after acquisitions and divestitures was minus $242 million compared to minus $899 million in the last year.

    Please refer to the investor news (download box) for a complete overview on the fourth quarter and the full year 2012 and the reconciliation of non-GAAP financial measures included in this release to the most comparable GAAP financial measures.

    Patients - Clinics - Treatments

    As of December 31, 2012, Fresenius Medical Care treated 257,916 patients worldwide, which represents an increase of 11% compared to the previous year’s figure. North America provided dialysis treatments for 164,554 patients, an increase of 16%. Including 32 clinics managed by Fresenius Medical Care North America, the number of patients in North America was 166,920. The International segment provided dialysis treatment to 93,362 patients, an increase of 3% over the prior year’s figure.

    As of December 31, 2012, the company operated a total of 3,160 clinics worldwide, which represents an increase of 9% compared to the previous year’s figure. The number of clinics is comprised of 2,082 clinics in North America (2,114 including managed clinics), and 1,078 clinics in the International segment, representing an increase of 13% and 2%, respectively.

    During the full year 2012, Fresenius Medical Care delivered approximately 38.6 million dialysis treatments worldwide. This represents an increase of 12% compared to the previous year’s figure. North America accounted for 24.4 million treatments, an increase of 13%. The International segment delivered 14.2 million treatments, an increase of 11%.

    Employees

    As of December 31, 2012, Fresenius Medical Care had 86,153 employees (full-time equivalents) worldwide, compared to 79,159 employees at the end of 2011. This increase of approximately 7,000 employees is due to overall growth in the company’s business and acquisitions including Liberty Dialysis Holdings, Inc.

    Dividend

    The company intends to continue its earnings-driven policy. At the Annual General Meeting to be held on May 16, 2013, shareholders will be asked to approve a dividend of €0.75 per ordinary share, an increase of 9% from 2011 (€0.69). For the 16th consecutive year, shareholders can expect to receive an increased annual dividend.

    Debt/EBITDA ratio

    The ratio of debt to earnings before interest, taxes, depreciation and amortization (EBITDA) increased from 2.69 at the end of 2011 to 2.83 at the end of 2012. The debt/EBITDA ratio at the end of the third quarter 2012 was 2.81.

    Rating

    Both Standard & Poor’s and Fitch rate the company’s corporate credit as ‘BB+’ with a ‘stable’ outlook. Moody's rates the company’s corporate credit as ‘Ba1’ with a ‘stable’ outlook. For further information on Fresenius Medical Care’s credit ratings and credit instruments, please visit Investor Relations/ Credit Relations.

    Outlook for 2013

    For the year 2013 the company expects revenue to grow to more than $14.6 billion. Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to be between $1.1 billion and $1.2 billion. For 2013, the company expects to spend around $700 million on capital expenditures and around $300 million on acquisitions. The debt/EBITDA ratio is expected to be equal or below 3.0 by the end of 2013.

     

    Targets for 2013:

    in US$ million 2012Goal 2013 Growth rate
    Revenue13,800>14,600>6%
    Operating income (EBIT) 2,2192,300 - 2,5004% - 13%
    Net income (comparable basis)* 1,0471,100 - 1,2005% - 15%

    *excluding investment gain

    Rice Powell, chief executive officer of Fresenius Medical Care, commented: “Fresenius Medical Care looks back on another successful year. We once again achieved new records both in terms of revenue and earnings despite challenging global conditions. We were able to sustain our growth path but more importantly we made very good progress with our quality initiatives in both products and services. Quality and growth remain our top priorities in the future. With our strong management team and dedicated employees, Fresenius Medical Care remains very well positioned for great success in 2013 and beyond.”

    Video Webcast

    Fresenius Medical Care will hold an analyst meeting at its headquarters in Bad Homburg, Germany to discuss the results of the fourth quarter and full year 2012 on Tuesday, February 26, 2013, at 3:15 p.m. CET / 9:15 a.m. EST. The company invites investors to view the live webcast of the meeting at the company’s website www.fmc-ag.com in the “Investor Relations” section. A replay will be available shortly after the meeting.

    Investor news

    Press release

     

    ***

    Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 2.2 million individuals worldwide. Through its network of 3,160 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to 257,916 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products.

    Disclaimer
    This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

    ***

     

    ]]>
    news-117 Wed, 31 Oct 2012 14:09:00 +0100 Fresenius Medical Care Reports Third Quarter 2012 And Nine Months 2012 Results /en/media/news/details/detail/News/fresenius-medical-care-reports-third-quarter-2012-and-nine-months-2012-results/ Third Quarter 2012 Summary:
    Net revenue$3,418 million+7%
    Operating income (EBIT)$568 million+6%
    Net income attributable to shareholders
    of Fresenius Medical Care AG & Co. KGaA
    $270 million-3%
    Earnings per ordinary share$0.88-4%

     

    Nine Months 2012 Summary:

    Net revenue$10,095 million+8%
    Operating income (EBIT)$1,659 million+11%
    Net income attributable to shareholders
    of Fresenius Medical Care AG & Co. KGaA
    $930 million+22%
    Earnings per ordinary share$3.05+21%


    Earnings excluding investment gain:

    Net income attributable to shareholders of
    Fresenius Medical Care AG & Co. KGaA
    $790 million+4%
    Earnings per ordinary share$2.59+3%


    Bad Homburg, Germany
    – Fresenius Medical Care AG & Co. KGaA (the “company” or “Fresenius Medical Care”; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world’s largest provider of dialysis products and services, today announced its results for the third quarter and first nine months of 2012.

    Third Quarter 2012:

    Revenue

    Net revenue for the third quarter of 2012 increased by 7% to $3,418 million (+11% at constant currency) compared to the third quarter of 2011. Organic revenue growth worldwide was 4%. Dialysis services revenue grew by 10% to $2,605 million (+12% at constant currency) and dialysis product revenue decreased by 1% to $813 million and increased by 7% at constant currency.

    North America revenue for the third quarter of 2012 increased by 13% to $2,249 million. Dialysis services revenue grew by 15% to $2,047 million with a same market treatment growth of 4%. Average revenue per treatment for U.S. clinics increased to $349 in the third quarter of 2012 compared to $345 for the corresponding quarter in 2011. Dialysis product revenue decreased by 1% to $202 million. After adjusting for the Liberty acquisition, dialysis product revenue increased by 2%.

    International revenue decreased by 2% to $1,163 million and increased by 7% at constant currency. Organic revenue growth was 7%. Dialysis services revenue decreased by 4% to $558 million and increased by 6% at constant currency. Dialysis product revenue decreased by 1% to $605 million and increased by 9% at constant currency.

    Earnings

    Operating income (EBIT) for the third quarter of 2012 increased by 6% to $568 million compared to $534 million in the third quarter of 2011. This resulted in an operating margin of 16.6% for the third quarter of 2012 compared to 16.8% for the corresponding quarter in 2011.

    In North America, the operating margin decreased from 18.8% to 18.7%. Average costs per treatment for U.S. clinics increased by $2 to $281 in the third quarter of 2012 as compared to $279 in the third quarter of 2011.

    In the International segment, the operating margin decreased from 17.3% to 16.8%.

    Net interest expense for the third quarter of 2012 was $108 million, compared to $68 million in the third quarter of 2011. This development was mainly attributable to the higher level of indebtedness as a result of the issuance of various tranches of senior notes over the course of 2011 and 2012 to finance dialysis clinic acquisitions.

    Income tax expense was $153 million for the third quarter of 2012 compared to $163 million in the third quarter of 2011, reflecting effective tax rates of 33.3% and 35.0%, respectively.

    Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the third quarter of 2012 was $270 million, a decrease of 3% compared to the corresponding quarter of 2011.

    Earnings per ordinary share (EPS) for the third quarter 2012 was $0.88 compared to $0.92 for the third quarter of 2011. The weighted average number of shares outstanding for the third quarter of 2012 was approximately 305.5 million shares, compared to 303.2 million shares for the third quarter of 2011. The increase in shares outstanding resulted from stock option exercises in the past 12 months.

    Cash Flow

    In the third quarter of 2012, the company generated $535 million in cash from operations, an increase of 16% compared to the corresponding figure last year and representing 15.7% of revenue. The cash flow generation was supported by the favorable earnings development as well as the favorable development of working capital items including inventory.

    A total of $164 million was spent for capital expenditures, net of disposals. Free cash flow before acquisitions was $371 million (representing 10.8% of revenue) compared to $313 million in the third quarter of 2011. A total of $37 million in cash was spent for acquisitions and investments, net of divestitures. Free cash flow after acquisitions and divestitures was $334 million, compared to $264 million in the third quarter of 2011.

    Nine Months of 2012:

    Revenue and Earnings

    Net revenue for the first nine months of 2012 increased by 8% to $10,095 million (+11% at constant currency) compared to the first nine months of 2011. Organic revenue growth was 4% in the first nine months of 2012.

    Operating income (EBIT) for the first nine months of 2012 increased by 11% to $1,659 million compared to $1,488 million in the first nine months of 2011. The operating income margin increased to 16.4% for the first nine months of 2012 as compared to 16.0% in the same period in 2011.

    Net interest expense for the first nine months of 2012 was $311 million compared to $214 million in the same period of 2011.

    For the first nine months of 2012, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA was $930 million, up by 22% from the first nine months of 2011. This includes a non-taxable investment gain of $140 million related to the acquisition of Liberty Dialysis Holdings, Inc., including its 51% stake in Renal Advantage Partners, LLC (RAI). The gain is a result of measuring the 49% equity interest in RAI held by the company at its fair value at the time of the Liberty acquisition. Excluding this investment gain, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increased by 4% to $790 million.

    Income tax expense for the first nine months of 2012 was $462 million compared to $436 million in the same period in 2011, reflecting effective tax rates of 31.1% and 34.2%, respectively. Excluding the investment gain the effective tax rate for the first nine months of 2012 was 34.3%.

    In the first nine months of 2012, earnings per ordinary share rose by 21% to $3.05 and by 3% to $2.59 if excluding the investment gain. The weighted average number of shares outstanding during the first nine months of 2012 was approximately 304.7 million compared to 302.7 million shares for the first nine months of 2011.

    Cash Flow

    Cash from operations during the first nine months of 2012 was $1,467 million compared to $950 million for the same period in 2011, representing 14.5% of revenue.

    A total of $438 million in cash was spent for capital expenditures, net of disposals. Free cash flow before acquisitions for the first nine months of 2012 was $1,029 million compared to $570 million in the same period in 2011. A total of $1,557 million in cash was spent for acquisitions, net of divestitures. Free cash flow after acquisitions and divestitures was minus $528 million compared to minus $601 million in the first nine months of last year.

    Please refer to the attachments for a complete overview on the third quarter and first nine months of 2012 and the reconciliation of non-GAAP financial measures included in this release to the most comparable GAAP financial measures.

    Patients - Clinics - Treatments

    As of September 30, 2012, Fresenius Medical Care treated 256,521 patients worldwide, which represents a 12% increase compared to the previous year’s figure. North America provided dialysis treatments for 163,454 patients, an increase of 16%. Including 31 clinics managed by Fresenius Medical Care North America, the number of patients in North America was 165,754. The International segment provided dialysis treatment to 93,067 patients, an increase of 6% over the prior year’s figure.

    As of September 30, 2012, the company operated a total of 3,135 clinics worldwide, which represents a 9% increase compared to the previous year’s figure. The number of clinics is comprised of 2,056 clinics in North America (2,087 including managed clinics), and 1,079 clinics in the International segment, representing an increase of 12% and 4%, respectively.

    During the first nine months of 2012, Fresenius Medical Care delivered approximately 28.6 million dialysis treatments worldwide. This represents an increase of 12%, compared to last year’s figure. North America accounted for 18.1 million treatments, an increase of 12%. The International segment delivered 10.5 million treatments, an increase of 13%.

    Employees

    As of September 30, 2012, Fresenius Medical Care had 85,368 employees (full-time equivalents) worldwide, compared to 79,159 employees at the end of 2011. This increase of more than 6,200 employees is due to overall growth in the company’s business and acquisitions including Liberty Dialysis Holdings, Inc.

    Debt/EBITDA ratio

    The ratio of debt to earnings before interest, taxes, depreciation and amortization (EBITDA) increased from 2.55 at the end of the third quarter of 2011 to 2.81 at the end of the third quarter of 2012. The debt/EBITDA ratio at the end of the second quarter 2012 was 2.92.

    Rating

    During the third quarter of 2012, Standard & Poor’s removed the company’s ratings from review and affirmed the company’s corporate credit as ‘BB+’ with a ‘stable’ outlook. Moody's rates the company’s corporate credit as ‘Ba1’ with a ‘stable’ outlook, and Fitch rates the company’s corporate credit as ‘BB+’ with a ‘stable’ outlook. For further information on Fresenius Medical Care’s credit ratings, maturity profiles and credit instruments, please visit our website at www.fmc-ag.com / Investor Relations/ Credit Relations.

    Successful Renewal of Credit Agreement

    Fresenius Medical Care successfully renewed its syndicated credit agreement including a revolving facility and a long term loan. The refinancing of those facilities was well received in the bank market. The company entered into a $3.85 billion syndicated credit agreement, comprised of 5-year revolving facilities (including a $200 million U.S. Dollar facility, a €500 million Euro facility and a $ 400 million multi-currency facility) and a 5-year $2.6 billion term loan. Proceeds from the credit facilities were used to refinance the company’s existing credit facilities, which otherwise would have matured on March 31, 2013, and for general corporate purposes.

    Sales and earnings outlook for 2012 confirmed

    For the full year 2012, the company confirms its sales and earnings outlook.

    The company expects revenue to grow to ~ $14 billion in 20121. Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to grow to ~ $1.14 billion1. This does neither include the investment gain in the amount of $140 million in the first nine months of 2012 nor does it consider charges of up to $70 million after tax mainly related to the intended renegotiation of the distribution, manufacturing and supply agreement for iron products in North America to reflect changes in the market and a donation to the American Society of Nephrology foundation to establish the Ben J. Lipps Research Fellowship Program.

    For 2012, the company expects to spend ~ $700 million on capital expenditures and ~ $1.8 billion on acquisitions. The debt/EBITDA ratio is expected to be below 3.0 by the end of 2012.


    Ben Lipps, chief executive officer of Fresenius Medical Care, commented: “In light of the negative implications from the difficult economic environment and from currency fluctuations, we achieved good operating results with an excellent operating cash flow in the third quarter of 2012. In summary, we are confirming our guidance for the full year at the lower end of the previously indicated range. We anticipate some special collection efforts related to services performed in prior years and other initiatives in the fourth quarter that will help us to achieve our guidance. The integration progress of our latest acquisitions continues and we are very pleased with our Quality Improvement programs and patient outcomes continuing to improve in nutritional status and reduced hospital days. The CEO transition to Rice Powell continues on track with the appointment of Ron Kuerbitz as the new CEO for North America effective January 2013.”

     

    Conference Call

    Fresenius Medical Care will hold a conference call to discuss the results of the third quarter and first nine months of 2012 on Wednesday, October 31, 2012, at 3:30 p.m. CET / 10:30 a.m. EDT. The company invites investors to view the live webcast of the call at the company’s website www.fmc-ag.com in the “Investor Relations” section. A replay will be available shortly after the call.

    1We define the ~ sign as a +/- 0-2% deviation from the respective numbers.

    ***

    Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 2.1 million individuals worldwide. Through its network of 3,135 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to 256,521 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products.

    Disclaimer
    This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

    ***

    ]]>
    news-115 Wed, 01 Aug 2012 13:57:00 +0200 Fresenius Medical Care Reports Strong Second Quarter 2012 And Half Year 2012 Results And Confirms Guidance For Full Year 2012 /en/media/news/details/detail/News/fresenius-medical-care-reports-strong-second-quarter-2012-and-half-year-2012-results-and-confirms-guidance-for-full-year-2012/ Second Quarter 2012 Summary:
    Net revenue$3,428 million+8%
    Operating income (EBIT)$589 million+16%
    Net income attributable to shareholders
    of Fresenius Medical Care AG & Co. KGaA
    $289 million+11%
    Earnings per ordinary share$0.95+10%

    Earnings excluding investment gain:

    Net income attributable to shareholders of
    Fresenius Medical Care AG & Co. KGaA
    $276 million+6%
    Earnings per ordinary share$0,91+5%


    First Half 2012 Summary:

    Net revenue$6,677 million+9%
    Operating income (EBIT)$1,092 million+14%
    Net income attributable to shareholders
    of Fresenius Medical Care AG & Co. KGaA
    $660 million+37%
    Earnings per ordinary share$2.17+36%

    Earnings excluding investment gain:

    Net income attributable to shareholders of
    Fresenius Medical Care AG & Co. KGaA
    $520 million+8%
    Earnings per ordinary share$1,71+7%

    Bad Homburg, Germany – Fresenius Medical Care AG & Co. KGaA (the “company” or “Fresenius Medical Care”; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world’s largest provider of dialysis products and services, today announced its results for the second quarter and first half of 2012.

    Second Quarter 2012:

    Revenue

    Net revenue for the second quarter of 2012 increased by 9% to $3,428 million (+13% at constant currency) compared to the second quarter of 2011. Organic revenue growth worldwide was 4%. Dialysis services revenue grew by 13% to $2,605 million (+16% at constant currency) and dialysis product revenue decreased by 1% to $823 million and increased by +6% at constant currency.

    North America revenue for the second quarter of 2012 increased by 14% to $2,249 million. Dialysis services revenue grew by 15% to $2,043 million with a same market growth of 4%. Average revenue per treatment for U.S. clinics increased to $351 in the second quarter of 2012 compared to $348 for the corresponding quarter in 2011. Dialysis product revenue increased by 3% to $206 million mainly as a result of higher sales of hemodialysis products.

    International revenue increased by 1% to $1,171 million (+ 11% at constant currency). Organic revenue growth was 6%. Dialysis services revenue increased by 5% to $562 million (+16% at constant currency). Dialysis product revenue decreased by 3% to $609 million and increased by 6% at constant currency, mainly driven by higher sales of dialysis machines and dialyzers.

    Earnings

    Operating income (EBIT) for the second quarter of 2012 increased by 16% to $589 million compared to $510 million in the second quarter of 2011. This resulted in an operating margin of 17.2% for the second quarter of 2012 compared to 16.2% for the corresponding quarter in 2011.

    In North America, the operating margin increased from 17.7% to 19.2%. Average costs per treatment for U.S. clinics decreased by $3 to $280 in the second quarter of 2012 as compared to $283 in the second quarter of 2011.

    In the International segment, the operating margin increased from 17.5% to 17.7%.

    Net interest expense for the second quarter of 2012 was $104 million, compared to $75 million in the second quarter of 2011. This development was mainly attributable to the higher level of financial debt as a result of the issuance of various tranches of senior notes over the course of 2011 and 2012.

    Income tax expense was $172 million for the second quarter of 2012 compared to $149 million in the second quarter of 2011, reflecting effective tax rates of 34.6% and 34.2%, respectively. Excluding the investment gain the effective tax rate was 35.5%.

    Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the second quarter of 2012 was $289 million, an increase of 11% compared to the corresponding quarter of 2011. This includes a non-taxable investment gain of $13 million related to the acquisition of Liberty Dialysis Holdings, Inc., including its 51% stake in Renal Advantage Partners, LLC (RAI). The gain is a result of measuring the 49% equity interest in RAI held by the company at its fair value at the time of the Liberty acquisition and represents an adjustment to the amount recorded in the first quarter of 2012 as part of the continuing finalization of the Liberty purchase accounting. Excluding this investment gain net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increased by 6% to $276 million.

    Earnings per ordinary share (EPS) for the second quarter 2012 was $0.95 and $0.91 if excluding the investment gain. This represents an increase compared to the second quarter of 2011 of 10% and of 5%, respectively. The weighted average number of ordinary shares outstanding for the second quarter of 2012 was approximately 300.4 million shares, compared to 298.6 million shares for the second quarter of 2011. The increase in shares outstanding resulted from stock option exercises in the past 12 months.

    Cash Flow

    In the second quarter of 2012, the company generated $451 million in cash from operations, an increase of 45% compared to the corresponding figure last year and representing 13.2% of revenue. The cash flow generation was supported by a favorable development of days sales outstanding.

    A total of $151 million was spent for capital expenditures, net of disposals. Free cash flow before acquisitions was $300 million compared to $194 million in the second quarter of 2011. A total of $6 million in cash was generated from divestitures, net of acquisitions. Free cash flow after acquisitions and divestitures was $306 million, compared to minus $590 million in the second quarter of 2011.

     

    First Half 2012:

    Revenue and Earnings

    Net revenue for the first half of 2012 increased by 9% to $6,677 million (+12% at constant currencies) compared to the first half of 2011. Organic revenue growth was 4% in the first half of 2012.

    Operating income (EBIT) for the first half of 2012 increased by 14% to $1,092 million compared to $955 million in the first half of 2011. The operating income margin increased to 16.4% for the first half of 2012 as compared to 15.6% in the same period in 2011.

    Net interest expense for the first half of 2012 was $203 million compared to $146 million in the same period of 2011.

    For the first half of 2012, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA was $660 million, up by 37% from the first half of 2011. This includes a non-taxable investment gain of $140 million related to the acquisition of Liberty Dialysis Holdings, Inc., including its 51% stake in Renal Advantage Partners, LLC (RAI). The gain is a result of measuring the 49% equity interest in RAI held by the company at its fair value at the time of the Liberty acquisition. Excluding this investment gain net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increased by 8% to $520 million.

    Income tax expense for the first half of 2012 was $309 million compared to $273 million in the same period in 2011, reflecting effective tax rates of 30.1% and 33.8%, respectively. Excluding the investment gain the effective tax rate was 34.8%. In the first half of 2012, earnings per ordinary share rose by 36% to $2.17 and by 7% to $1.71 if excluding the investment gain. The weighted average number of ordinary shares outstanding during the first half of 2012 was approximately 300.3 million.

    In the first nine months of 2012, earnings per ordinary share rose by 21% to $3.05 and by 3% to $2.59 if excluding the investment gain. The weighted average number of shares outstanding during the first nine months of 2012 was approximately 304.7 million compared to 302.7 million shares for the first nine months of 2011.

    Cash Flow

    Cash from operations during the first half of 2012 was $932 million compared to $487 million for the same period in 2011, representing 14% of revenue.

    A total of $274 million in cash was spent for capital expenditures, net of disposals. Free cash flow before acquisitions for the first half of 2012 was $658 million compared to $256 million in the same period in 2011. A total of $1,520 million in cash was spent for acquisitions, net of divestitures. Free cash flow after acquisitions and divestitures was minus $862 million compared to minus $866 million in the first half of last year.

    Please refer to the attachments for a complete overview on the second quarter and first half of 2012 and the reconciliation of non-GAAP financial measures included in this release to the most comparable GAAP financial measures.

    Patients - Clinics - Treatments

    As of June 30, 2012, Fresenius Medical Care treated 256,456 patients worldwide, which represents a 14% increase compared to the previous year’s figure. North America provided dialysis treatments for 164,058 patients, an increase of 17%. Including 28 clinics managed by Fresenius Medical Care North America, the number of patients in North America was 166,282. The International segment provided dialysis treatment to 92,398 patients, an increase of 7% over the prior year’s figure.

    As of June 30, 2012, the company operated a total of 3,123 clinics worldwide, which represents a 10% increase compared to the previous year’s figure. The number of clinics is comprised of 2,046 clinics in North America (2,074 including managed clinics), and 1,077 clinics in the International segment, representing an increase of 12% and 6%, respectively.

    During the first half of 2012, Fresenius Medical Care delivered approximately 18.89 million dialysis treatments worldwide. This represents an increase of 14%, compared to last year’s figure. North America accounted for 11.89 million treatments, an increase of 12%. The International segment delivered 7.0 million treatments, an increase of 18%.

    Employees

    As of June 30, 2012, Fresenius Medical Care had 84,194 employees (full-time equivalents) worldwide, compared to 79,159 employees at the end of 2011. This increase of more than 5,000 employees is due to overall growth in the company’s business and acquisitions including Liberty Dialysis Holdings, Inc.

    Debt/EBITDA ratio

    The ratio of debt to earnings before interest, taxes, depreciation and amortization (EBITDA) increased from 2.77 at the end of the second quarter of 2011 to 2.92 at the end of the second quarter of 2012. The debt/EBITDA ratio at the end of 2011 was 2.69.

    Rating

    Moody's affirmed the company’s corporate credit as ‘Ba1’ with a ‘stable’ outlook, and Fitch rates the company’s corporate credit as ‘BB+’ with a ‘stable’ outlook. Standard & Poor’s placed the company’s corporate credit on review as ‘BB+’ with a possible downgrade from "stable" to "negative". For further information on Fresenius Medical Care’s credit ratings, maturity profiles and credit instruments, please visit our website at www.fmc-ag.com / Investor Relations/ Credit Relations.

    Sales and earnings outlook for 2012 confirmed

    For the full year 2012, the company confirms its sales and earnings outlook.

    The company expects revenue to grow to ~ $14 billion in 20121.

    Net income is expected to grow to ~ $1.3 billion and net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to grow to ~ $1.14 billion1. This does not include the investment gain in the amount of $140 million in the first half of 2012.

    For 2012, the company expects to spend ~ $700 million on capital expenditures and ~ $1.8 billion on acquisitions. The debt/EBITDA ratio is expected to be below 3.0 by the end of 2012.

    Ben Lipps, chief executive officer of Fresenius Medical Care, commented: “We achieved a very good operating performance in the second quarter of 2012. We are very pleased with the progress we and our clinical associates are achieving to improve global patient care outcomes, notably in anemia and nutrition management and the continued reduction in hospital days. North America is progressing well with its integration of the Liberty acquisition. Revenue growth in both North America and International was double digit in constant currency and despite the difficult global economic environment, we have improved cash collection, which also reflects the dedication of our staff and credibility we have with payers. In summary, we are affirming our guidance for the full year 2012 and expect another record year for the company.”

    Conference Call

    Fresenius Medical Care will hold a conference call to discuss the results of the second quarter and first half of 2012 on Wednesday, August 1, 2012, at 3:30 p.m. CEDT / 9:30 a.m. EDT. The company invites investors to view the live webcast of the call at the company’s website www.fmc-ag.com in the “Investor Relations” section. A replay will be available shortly after the call.

    1 We define the ~ sign as a +/- 0-2% deviation from the respective numbers.

    ***

    Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 2.1 million individuals worldwide. Through its network of 3,123 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to 256,456 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products.

    Disclaimer
    This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release

    ***

    ]]>
    news-122 Thu, 03 May 2012 10:46:00 +0200 Fresenius Medical Care Reports Excellent First Quarter 2012 Results And Confirms Guidance For Full Year 2012 /en/media/news/details/detail/News/fresenius-medical-care-reports-excellent-first-quarter-2012-results-and-confirms-guidance-for-full-year-2012/ 1st Quarter 2012 Summary:
    Net revenue$3,249 million +9%
    Operating income (EBIT)$503 million+13%
    Net income attributable to shareholders
    of Fresenius Medical Care AG & Co. KGaA
    $370 million+68%
    Earnings per ordinary share$1.22+67%


    Earnings excluding investment gain:

    Net income attributable to shareholders of
    Fresenius Medical Care AG & Co. KGaA
    $244 million+10%
    Earnings per ordinary share$0.80+10%

     

    Fresenius Medical Care AG & Co. KGaA (“the company” or “Fresenius Medical Care”; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world’s largest provider of dialysis products and services, today announced its results for the first quarter of 2012.

    Revenue

    Net revenue for the first quarter of 2012 increased by 9% to $3,249 million (+10% at constant currency) compared to the first quarter of 2011. Organic revenue growth worldwide was 3%. Dialysis services revenue grew by 11% to $2,478 million (+12% at constant currency) and dialysis product revenue increased by 3% to $771 million (+5% at constant currency). 

    North America revenue for the first quarter of 2012 increased by 9% to $2,105 million. Dialysis services revenue grew by 11% to $1,918 million with a same market growth of 3%. Average revenue per treatment for U.S. clinics increased to $353 in the first quarter of 2012 compared to $348 for the corresponding quarter in 2011. Dialysis product revenue decreased by 4% to $187 million mainly as a result of lower pricing of renal pharmaceuticals.

    International revenue increased by 8% to $1,136 million (+ 12% at constant currency). Organic revenue growth was 6%. Dialysis services revenue increased by 11% to $560 million (+16% at constant currency). Dialysis product revenue increased by 4% to $576 million and increased by 8% at constant currency, mainly driven by higher sales of dialysis machines. 

    Earnings

    Operating income (EBIT) for the first quarter of 2012 increased by 13% to $503 million compared to $445 million in the first quarter of 2011. This resulted in an operating margin of 15.5% for the first quarter of 2012 compared to 14.9% for the corresponding quarter in 2011.

    In North America, the operating margin increased from 16.2% to 16.5%. The increase in Medicare rates and the growth of our expanded services contributed favorably to this development. Average costs per treatment for U.S. clinics decreased to $286 in the first quarter of 2012 compared to $288 for the corresponding quarter in 2011.

    In the International segment, the operating margin increased from 16.2% to 17.2%, mainly due to favorable exchange rate effects.

    Net interest expense for the first quarter of 2012 was $99 million, compared to $72 million in the first quarter of 2011. This development was mainly attributable to the higher level of financial debt as a result of the issuance of various tranches of senior notes over the course of 2011 and 2012.

    Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the first quarter of 2012 was $370 million, an increase of 68% compared to the corresponding quarter of 2011. This includes a non-taxable investment gain of $127 million related to the acquisition of Liberty Dialysis Holdings, Inc., including its 51% stake in Renal Advantage Partners, LLC (RAI). The gain is a result of measuring the 49% equity interest in RAI held by the company at its fair value at the time of the Liberty acquisition and is subject to the finalization of the Liberty purchase accounting. Excluding this investment gain net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increased by 10% to $244 million.

    Income tax expense was $137 million for the first quarter of 2012 compared to $124 million in the first quarter of 2011. The effective tax rate decreased to 25.8% from 33.3% driven by the non-taxable investment gain. Excluding the investment gain the effective tax rate was 33.9%.

    Earnings per ordinary share (EPS) for the first quarter 2012 was $1.22 and $0.80 if excluding the investment gain. This represents an increase compared to the first quarter of 2011 of 67% and 10%, respectively. The weighted average number of shares outstanding for the first quarter of 2012 was approximately 304.2 million shares, compared to 302.3 million shares for the first quarter of 2011. The increase in shares outstanding resulted from stock option exercises in the past 12 months.

    Cash Flow

    In the first quarter of 2012, the company generated $481 million in cash from operations, an increase of 174% compared to the corresponding figure last year and representing approximately 14.8% of revenue. The cash flow generation was supported by a favorable development of DSO and inventory levels as well as lower income tax payments. 

    A total of $122 million was spent for capital expenditures, net of disposals. Free cash flow before acquisitions was $359 million compared to $62 million in the first quarter of 2011. A total of $1,526 million in cash was spent for acquisitions and investments, net of divestitures. Free cash flow after acquisitions, investments and divestitures was minus $1,167 million, compared to minus $277 million in the first quarter of 2011.

    Please refer to the attachments for a complete overview on the first quarter of 2012 and the reconciliation of non-GAAP financial measures included in this release to the most comparable GAAP financial measures.

    Patients - Clinics - Treatments

    As of March 31, 2012, Fresenius Medical Care treated 253,041 patients worldwide, which represents a 17% increase compared to the previous year’s figure. North America provided dialysis treatments for 161,656 patients, an increase of 17%. Including 21 clinics managed by Fresenius Medical Care North America, the number of patients in North America was 163,261. The International segment provided dialysis treatment to 91,385 patients, an increase of 16% over the prior year’s figure.

    As of March 31, 2012, the company operated a total of 3,119 clinics worldwide, which represents a 13% increase compared to the previous year’s figure. The number of clinics is comprised of 2,053 clinics in North America (2,074 including managed clinics), and 1,066 clinics in the International segment, representing an increase of 13% and 13%, respectively.

    During the first quarter of 2012, Fresenius Medical Care delivered approximately 9.21 million dialysis treatments worldwide. This represents an increase of 13%, compared to last year’s figure. North America accounted for 5.75 million treatments, an increase of 10%. The International segment delivered 3.47 million treatments, an increase of 18%.

    Employees

    As of March 31, 2012, Fresenius Medical Care had 82,979 employees (full-time equivalents) worldwide, compared to 79,159 employees at the end of 2011. This increase of more than 3,800 employees is due to overall growth in the company’s business and acquisitions including Liberty Dialysis Holdings, Inc.

    Debt/EBITDA Ratio

    The ratio of debt to Earnings before interest, taxes, depreciation and amortization (EBITDA) increased from 2.55 at the end of the first quarter of 2011 to 2.96 at the end of the first quarter of 2012. The debt/EBITDA ratio at the end of 2011 was 2.69.

    Rating

    In February Standard & Poor’s Ratings Services upgraded the company’s corporate credit to ‘BB+’ from ‘BB’. The agency also raised the ratings of Fresenius Medical Care’s various unsecured senior notes to ‘BB+’ from ‘BB’. The rating of ‘BBB-‘ on Fresenius Medical Care’s senior secured credit facilities was affirmed. A stable outlook has been assigned to all ratings. Moody's rates the company’s corporate credit as ‘Ba1’ with a ‘stable’ outlook, and Fitch rates the company’s corporate credit as ‘BB+’ with a ‘stable’ outlook. For further information on Fresenius Medical Care’s credit ratings, maturity profiles and credit instruments, please visit our website at www.fmc-ag.com / Investor Relations / Credit Relations.

    Announcement of Management Board Change

    On March 9, 2012, Fresenius Medical Care announced a change in the Management Board. Rice Powell will succeed Dr. Ben J. Lipps as CEO of Fresenius Medical Care AG & Co. KGaA and Chairman of the Management Board, effective January 1, 2013. The appointment of Rice Powell is part of the company’s succession plan to ensure a smooth transition of leadership. Ben Lipps was appointed Chief Executive Officer and Chairman of the Management Board in 1999. In recognition of his extraordinary achievements and unique expertise Dr. Ben J. Lipps has been appointed Honorary Chairman of the supervisory boards of Fresenius Medical Care AG & Co. KGaA and the Fresenius Medical Care Management AG, effective January 1, 2013. 

    Closing of the acquisition of Liberty Dialysis Holdings

    Fresenius Medical Care North America has closed the acquisition of Liberty Dialysis Holdings, Inc., the holding company of Liberty Dialysis and Renal Advantage effective February 28, 2012. The closing followed the completion of the review of the transaction and issuance of a consent decree by the United States’ Federal Trade Commission. In connection with the consent decree, Fresenius Medical Care completed the sale of 44 clinics to Dialysis Newco, Inc. (“DSI Renal”). The acquisition of Liberty Dialysis Holdings Inc. is expected to add annual revenues of around $ 700 million and 201 clinics to Fresenius Medical Care’s network for an investment, net of proceeds from the divestiture, of approximately $1.5 billion.

    Sales and Earnings outlook for 2012 confirmed

    For the full year 2012, the company confirms its sales and earnings outlook.

    The company expects revenue to grow to around $14 billion in 2012.

    Net income is expected to grow to around $1.3 billion and net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to grow to around $1.14 billion. This does not include the investment gain in the amount of approximately $127 million in the first quarter of 2012.

    For 2012, the company expects to spend around $700 million on capital expenditures and around $1.8 billion on acquisitions. The debt/EBITDA ratio is expected to be below 3.0 by the end of 2012.

    “Our first quarter results show an excellent start for the year with both the North American as well as the International segment continuing their strong operating performance. On this basis we clearly confirm our previous guidance for the full year 2012 expecting another record year in terms of revenue and earnings", said Ben Lipps, chief executive officer of Fresenius Medical Care. “We have made very good progress on our growth initiatives globally and successfully closed the acquisition of Liberty Dialysis during the first quarter of 2012. With our global base we continue to be well positioned for the continuing success of our business.”

    Conference Call

    Fresenius Medical Care will hold a conference call to discuss the results of the first quarter of 2012 on Thursday, May 3, 2012, at 3:30 p.m. CEDT / 9:30 a.m. EDT. The company invites investors to view the live webcast of the call at the company’s website www.fmc-ag.com in the “Investor Relations” section. A replay will be available shortly after the call. 

    ***

    Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 2.1 million individuals worldwide. Through its network of 3,119 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to 253,041 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products.

    Disclaimer
    This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

    ***

    ]]>
    news-124 Thu, 26 Apr 2012 10:46:00 +0200 Fresenius Medical Care Reports Preliminary First Quarter 2012 Results - Strong Operating Performance And Outlook For Fiscal Year 2012 Confirmed /en/media/news/details/detail/News/fresenius-medical-care-reports-preliminary-first-quarter-2012-results-strong-operating-performance-and-outlook-for-fiscal-year-2012-confirmed/ 1st Quarter 2012 Summary:

    Reported figures:

    Net revenue$3,249 million +9%
    Operating income (EBIT)$503 million+13%
    Net income attributable to shareholders
    of Fresenius Medical Care AG & Co. KGaA
    $370 million+68%
    Earnings per ordinary share$1.22+67%


    Earnings excluding investment gain:

    Net income attributable to shareholders of
    Fresenius Medical Care AG & Co. KGaA
    $244 million+10%
    Earnings per ordinary share$0.80+10%


    Fresenius Medical Care AG & Co. KGaA (the "company" or "Fresenius Medical Care"; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world’s largest provider of dialysis products and services, today announced its preliminary results for the first quarter of 2012.

    Based on preliminary data, the total revenue for the first quarter 2012 increased by 9% (10% at constant currency) to $3,249 million. Operating income rose by 13% to $503 million. This resulted in an operating margin of 15.5% for the first quarter of 2012 compared to 14.9% for the corresponding quarter in 2011.

    Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the first quarter of 2012 was $370 million, an increase of 68%, compared to the corresponding quarter of 2011. This includes a non-taxable investment gain of $127 million related to the acquisition of Liberty Dialysis Holdings, Inc., including its 51% stake in Renal Advantage Partners, LLC (RAI). The gain is a result of measuring the 49% equity interest in RAI held by the company at its fair value at the time of the Liberty acquisition and is subject to the finalization of the Liberty purchase accounting.

    Excluding this investment gain, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA increased by 10% to $244 million.

    For the full year 2012, the company confirms its sales and earnings outlook. The company expects revenue to grow to around $14 billion in 2012. Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to grow to around $1.14 billion. This does not include the investment gain in the amount of approximately $127 million in the first quarter of 2012.

    The final figures for the first quarter of 2012 will be provided on May 3, 2012, as originally scheduled.

    ***

    Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 2.1 million individuals worldwide. Through its network of 3,119 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to 253,041 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products. This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

    ***

    ]]>
    news-159 Tue, 21 Feb 2012 09:29:00 +0100 Fresenius Medical Care Reports Very Strong Fourth Quarter and Full Year Results; Another Record Year expected for 2012 /en/media/news/details/detail/News/fresenius-medical-care-reports-very-strong-fourth-quarter-and-full-year-results-another-record-year-expected-for-2012/ 4th Quarter 2011 Summary:
    Net revenue$3,323 million+5%
    Operating income (EBIT)$587 million+9%
    Net income attributable to shareholders of
    Fresenius Medical Care AG & Co. KGaA   
    $310 million+14%
    Earnings per share$1.02+14%


    2011 Full-Year Summary:

    Net revenue$12,795 million +6%
    Operating income (EBIT)$2,075 million+8%
    Net income attributable to shareholders of
    Fresenius Medical Care AG & Co. KGaA
    $1,071 million+9%
    Earnings per share$3.54+9%
    Dividend Proposal Ordinary share0.69+6%
    Dividend Proposal Preference share0.71+6%

     

    Fresenius Medical Care AG & Co. KGaA (the "company" or "Fresenius Medical Care"; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world’s largest provider of dialysis products and services, today announced its results for the fourth quarter and full year of 2011.

    4th-Quarter 2011:

    Revenue

    Net revenue for the fourth quarter of 2011 increased by 5% to $3,323 million (+6% at constant currency) compared to the fourth quarter of 2010. Organic revenue growth worldwide was 3%. Dialysis services revenue grew by 3% to $2,435 million (+4% at constant currency) and dialysis product revenue increased by 9% to $888 million (+10% at constant currency).

    North America revenue for the fourth quarter of 2011 increased by 1% to $2,096 million including the impact of the new Medicare end-stage renal disease prospective payment system in the United States. Dialysis services revenue increased by 1% to $1,882 million with a same market growth of 3%. Average revenue per treatment for U.S. clinics decreased to $351 in the fourth quarter of 2011 compared to $355 for the corresponding quarter in 2010 reflecting the implementation of the new prospective payment system. Dialysis product revenue increased by 2% to $214 million, mainly as a result of increased sales of hemodialysis products partially offset by lower pricing of renal pharmaceuticals.

    International revenue increased by 12% to $1,223 million (+14% at constant currency). Organic revenue growth was 8%. Dialysis services revenue increased by 13% to $553 million (+16% at constant currency). Dialysis product revenue increased by 11% to $669 million and increased by 12% at constant currency, mainly driven by higher sales of peritoneal dialysis products, dialysis machines, dialyzers, products for acute care treatments and renal pharmaceuticals.

    Earnings

    Operating income (EBIT) for the fourth quarter of 2011 increased by 9% to $587 million compared to $539 million in the fourth quarter of 2010. This resulted in an operating margin of 17.7% for the fourth quarter of 2011 compared to 17.0% for the corresponding quarter in 2010.

    In North America, the operating margin increased from 17.9% in the fourth quarter of 2010 to 19.1% in the fourth quarter of 2011. This increase was favorably influenced by the development of pharmaceutical costs. Average costs per treatment for U.S. clinics decreased to $279 in the fourth quarter of 2011 compared to $287 for the corresponding quarter in 2010.

    In the International segment, the operating margin increased from 18.0% to 18.7% mainly due to favorable exchange rate effects and business growth in Asia-Pacific.

    Net interest expense for the fourth quarter of 2011 was $82 million compared to $74 million in the fourth quarter of 2010. This development was mainly attributable to the higher level of financial debt as a result of the issuance of various tranches of senior notes over the course of 2011.

    Income tax expense was $165 million for the fourth quarter of 2011 compared to $169 million in the fourth quarter of 2010. The effective tax rate decreased to 32.7% from 36.3%.

    Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the fourth quarter of 2011 was $310 million, an increase of 14% compared to the corresponding quarter of 2010.

    Earnings per share (EPS) for the fourth quarter of 2011 rose by 14% to $1.02 per ordinary share compared to $0.90 for the fourth quarter of 2010. The weighted average number of shares outstanding for the fourth quarter of 2011 was approximately 303.9 million shares compared to 302.1 million shares for the fourth quarter of 2010. The increase in shares outstanding resulted from stock option exercises in the past 12 months.

    Cash Flow

    In the fourth quarter of 2011, the company generated $497 million in cash from operations, an increase of 46% compared to the corresponding figure last year and representing approximately 15% of revenue. The cash flow generation was supported by increased earnings, a favorable development of days sales outstanding (DSO) compared to the fourth quarter of 2010 and lower income tax payments.

    A total of $191 million in cash was spent for capital expenditures, net of disposals. Free Cash Flow before acquisitions was $306 million compared to $173 million in the fourth quarter of 2010. A total of $604 million in cash was spent for acquisitions, net of divestitures. Free Cash Flow after acquisitions and divestitures was minus $298 million compared to minus $75 million in the fourth quarter of 2010.

    Full Year 2011:

    Revenue and Earnings

    Net revenue for the full year 2011 increased by 6% to $12,795 million (+5% at constant currency) compared to the full year 2010 and in line with our guidance. Organic revenue growth was 2% in the full year 2011.

    Operating income (EBIT) for the full year 2011 increased by 8% to $2,075 million compared to $1,924 million in 2010, resulting in an operating margin of 16.2% compared to 16.0% for the full year 2010.

    Net interest expense for the full year 2011 was $297 million compared to $280 million in the same period of 2010.

    Income tax expense for the full year 2011 was $601 million compared to $578 million in the same period in 2010, reflecting effective tax rates of 33.8% and 35.2%, respectively.

    For the full year 2011, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA was $1,071 million, up by 9% from the full year 2010 and in line with our guidance.

    In the full year 2011, earnings per ordinary share rose by 9% to $3.54. The weighted average number of shares outstanding during the full year 2011 was approximately 303.0 million.

    Cash Flow

    Cash from operations during 2011 was $1,446 million compared to $1,368 million for the same period in 2010, representing approximately 11% of revenue and above our targeted 10% level.

    A total of $570 million in cash was spent for capital expenditures, net of disposals. Free Cash Flow before acquisitions for the full year 2011 was $876 million compared to $861 million in the same period in 2010. A total of $1,775 million in cash was spent for acquisitions, net of divestitures. Free Cash Flow after acquisitions and divestitures was minus $899 million compared to $243 million in the last year.

    Please refer to the attachments for a complete overview on the fourth quarter and the full year of 2011 and the reconciliation of non-GAAP financial measures included in this release to the most comparable GAAP financial measures.

    Patients - Clinics - Treatments

    As of December 31, 2011, Fresenius Medical Care treated 233,156 patients worldwide, which represents a 9% increase compared to the previous year’s figure. North America provided dialysis treatments for 142,319 patients, an increase of 3%. Including 21 clinics managed by Fresenius Medical Care North America, the number of patients in North America was 143,679. The International segment provided dialysis treatments to 90,837 patients, an increase of 18% over the prior year’s figure.

    As of December 31, 2011, the company operated a total of 2,898 clinics worldwide, which represents a 6% increase compared to the previous year’s figure. The number of clinics is comprised of 1,838 clinics in North America (1,859 including managed clinics), and 1,060 clinics in the International segment, representing an increase of 2% and 13%, respectively.

    During the full year 2011, Fresenius Medical Care delivered approximately 34.39 million dialysis treatments worldwide. This represents an increase of 9% compared to last year’s figure. North America accounted for 21.61 million treatments, an increase of 4%. The International segment delivered 12.78 million treatments, an increase of 18%.

    Employees

    As of December 31, 2011, Fresenius Medical Care had 79,159 employees (full-time equivalents) worldwide compared to 73,452 employees at the end of 2010. This increase of more than 5,700 employees is due to overall growth in the company’s business and acquisitions.

    Dividend

    The company intends to continue its earnings-driven dividend policy. At the Annual General Meeting to be held on May 10, 2012, shareholders will be asked to approve a dividend of €0.69 per ordinary share, an increase of 6% from 2010 (€0.65). For the 15th consecutive year, shareholders can expect to receive an increased annual dividend.

    Debt/EBITDA Ratio

    The ratio of debt to Earnings before interest, taxes, depreciation and amortization (EBITDA) increased from 2.38 at the end of 2010 to 2.69 at the end of 2011. The debt/EBITDA ratio at the end of the third quarter 2011 was 2.55.

    Rating

    Standard & Poor’s Ratings Services rates the company’s corporate credit as ‘BB’ with a ‘positive’ outlook. Moody's rates the company’s corporate credit as ‘Ba1’ with a ‘stable’ outlook, and Fitch rates the company’s corporate credit as ‘BB+’ with a ‘stable’ outlook. For further information on Fresenius Medical Care’s credit ratings, maturity profiles and credit instruments, please visit our website at www.fmc-ag.com / Investor Relations / Credit Relations.

    Vifor Fresenius Medical Care Renal Pharma Ltd. Formation Completed

    After the recent clearance by the European Union antitrust commissions, the formation of Vifor Fresenius Medical Care Renal Pharma Ltd. was completed globally on November 1, 2011.

    Acquisition of American Access Care Completed

    The American Accesss Care (AAC) acquisition was closed effective October 1, 2011. AAC operates 28 freestanding out-patient centers primarily dedicated to serving vascular access needs of dialysis patients. The acquired operations will add approximately $175 million in annual revenue and are expected to be accretive to earnings in the first year after closing of the transaction.

    Acquisition of Liberty Dialysis Holdings, Inc.

    The acquisition of Liberty Dialysis Holdings, Inc. is on schedule and is still expected to close in the first quarter of 2012.

    Issuance of senior notes

    In January 2012, Fresenius Medical Care successfully completed the largest placement of senior notes in the history of the company. Proceeds from the offering of three tranches of U.S. dollar and euro-denominated senior unsecured notes amounting to approximately $1.81 billion are intended to be used for acquisitions, including the acquisition of Liberty Dialysis Holdings, Inc., to refinance indebtedness and for general corporate purposes. The coupon for the dollar-denominated senior notes in the principal amount of $800 million due 2019 is 5.625% and the coupon for the dollar-denominated senior notes in the principal amount of $700 million due 2022 is 5.875%. The coupon for the euro-denominated senior notes in the principal amount of €250 million due 2019 is 5.25%. All tranches were issued at par.

    Issuance of floating rate senior notes

    In October 2011, Fresenius Medical Care issued euro-denominated floating rate senior notes in the principal amount of €100 million, due 2016. The coupon is equal to the three-month Euribor rate plus 350 basis points.

    Outlook for 2012

    For the year 2012, the company expects revenue to grow to around $14 billion. This takes into account a change in US-GAAP1) in the presentation of U.S. dialysis service revenue which will be shown net of the provision for bad debt. Based on the comparable revenue for 2011 of $12,571 million the revenue outlook represents an increase of 11% and between 13% and 15% based on constant currencies.

    Net income is expected to grow to around $1.3 billion and net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to grow to around $1.14 billion with operating margins forecast to increase to approximately 16.9%.

    For 2012, the company expects to spend around $700 million on capital expenditures and around $1.8 billion on acquisitions. The debt/EBITDA ratio is expected to be below 3.0 by the end of 2012.

    “We are very pleased to have achieved another year of record results in 2011. In the past 15 years, since the foundation of the company, Fresenius Medical Care has been able to quadruple its sales and to increase its earnings tenfold. With our strong performance in 2011 we are proposing to deliver our fifteenth consecutive dividend increase to our shareholders", said Ben Lipps, chief executive officer of Fresenius Medical Care. "We successfully handled the implementation of the new reimbursement system in the U.S. and have made good progress on our growth initiatives. We are confident that we will continue our strong performance targeting another record year in 2012.”

    1) First time adoption of Accounting Standards Codification 954-605 in 2012 (Patient service revenue less provision for bad debt).

    Video Webcast

    Fresenius Medical Care will hold an analyst meeting at its headquarters in Bad Homburg, Germany, to discuss the results of the fourth quarter and the full year of 2011 on Tuesday, February 21, 2011, at 3:15 p.m. CET / 9:15 a.m. EDT. The company invites investors to view the live webcast of the meeting at the company’s website www.fmc-ag.com in the “Investor Relations” section. A replay will be available shortly after the meeting.

    ***

    About Fresenius Medical Care
    Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 2.1 million individuals worldwide. Through its network of 2,898 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to 233,156 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products.

    Disclaimer
    This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

    ***

    ]]>
    news-61 Wed, 02 Nov 2011 00:00:00 +0100 Fresenius Medical Care Reports Strong Third Quarter and Nine Months Results; confirms Outlook for 2011 /en/media/news/details/detail/News/fresenius-medical-care-reports-strong-third-quarter-and-nine-months-results-confirms-outlook-for-2011/ 3rd Quarter 2011 Summary:
    Net revenue$3,242 million+6%
    Operating income (EBIT)$534 million+8%
    Net income attributable to Fresenius Medical Care AG & Co. KGaA$279 million+13%
    Earnings per share$0.92+12%

     

    Nine Months 2011 Summary:

    Net revenue$9,473 million+7%
    Operating income (EBIT)$1,488 million+7%
    Net income attributable to Fresenius Medical Care AG & Co. KGaA$761 million+8%
    Earnings per share$2.51+7%

     

    Fresenius Medical Care AG & Co. KGaA (“the company” or “Fresenius Medical Care”; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world’s largest provider of dialysis products and services, today announced its results for the third quarter and first nine months of 2011.

      

    3rd Quarter 2011: 

    Revenue

    Net revenue for the third quarter of 2011 increased by 6% to $3,242 million (+4% at constant currency) compared to the third quarter of 2010. Organic revenue growth worldwide was 1%. Dialysis services revenue grew by 4% to $2,425 million (+3% at constant currency) and dialysis product revenue increased by 11% to $817 million (+5% at constant currency).

    North America revenue for the third quarter of 2011 decreased by 1% to $2,050 million including the impact of the new Medicare end-stage renal disease prospective payment system in the United States. Dialysis services revenue decreased by 1% to $1,846 million with a same market growth of 3%. Average revenue per treatment for U.S. clinics decreased to $345 in the third quarter of 2011 compared to $359 for the corresponding quarter in 2010 reflecting the implementation of the new prospective payment system. Dialysis product revenue decreased by 2% to $204 million, as increased sales of hemodialysis products could not entirely offset lower pricing of renal drugs.

    International revenue increased by 20% to $1,187 million (+13% at constant currency). Organic revenue growth was 6%. Dialysis services revenue increased by 26% to $579 million (+20% at constant currency). Dialysis product revenue increased by 15% to $608 million and increased by 7% at constant currency, mainly driven by higher sales of peritoneal dialysis products, dialyzers, solutions, concentrates and dialysis machines.

     

    Earnings

    Operating income (EBIT) for the third quarter of 2011 increased by 8% to $534 million compared to $493 million in the third quarter of 2010. This resulted in an operating margin of 16.5% for the third quarter of 2011 compared to 16.1% for the corresponding quarter in 2010.


    In North America, the operating margin increased from 18.1% in the third quarter of 2010 to 18.3% in the third quarter of 2011. This increase was mainly favorably influenced by the development of pharmaceutical costs and a positive impact from a royalty adjustment for Venofer®. Average costs per treatment for U.S. clinics decreased to $279 in the third quarter of 2011 compared to $289 for the corresponding quarter in 2010.

    In the International segment, the operating margin increased from 15.8% to 17.3% mainly due to lower manufacturing costs, favorable exchange rate effects and business growth in Asia-Pacific. .

    Net interest expense for the third quarter of 2011 was $68 million compared to $70 million in the third quarter of 2010. This development was mainly attributable to increased interest income related to the loan to Renal Advantage Partners.

    Income tax expense was $163 million for the third quarter of 2011 compared to $153 million in the third quarter of 2010. The effective tax rate decreased to 35.0% from 36.2%.

    Net income attributable to Fresenius Medical Care AG & Co. KGaA for the third quarter of 2011 was $279 million, an increase of 13% compared to the corresponding quarter of 2010.

    Earnings per share (EPS) for the third quarter of 2011 rose by 12% to $0.92 per ordinary share compared to $0.82 for the third quarter of 2010. The weighted average number of shares outstanding for the third quarter of 2011 was approximately 303.2 million shares compared to 301.2 million shares for the third quarter of 2010. The increase in shares outstanding resulted from stock option exercises in the past 12 months.

     

    Cash Flow

    In the third quarter of 2011, the company generated $463 million in cash from operations, representing approximately 14% of revenue. The cash flow generation was supported by a favorable development of days sales outstanding (DSO) and increased earnings.

    A total of $150 million in cash was spent for capital expenditures, net of disposals. Free cash flow before acquisitions was $313 million compared to $263 million in the third quarter of 2010. A total of $49 million in cash was spent for acquisitions, net of divestitures. Free cash flow after acquisitions and divestitures was $264 million compared to $176 million in the third quarter of 2010.  

     

    Nine Months 2011: 

    Revenue and Earnings

    Net revenue for the first nine months of 2011 increased by 7% to $9,473 million (+4% at constant currency) compared to the first nine months of 2010. Organic revenue growth was 2% in the first nine months of 2011.

    Operating income (EBIT) for the first nine months of 2011 increased by 7% to $1,488 million compared to $1,385 million in the first nine months of 2010, resulting in an operating margin of 15.7% compared to 15.6% for the first nine months of 2010.

    Net interest expense for the first nine months of 2011 was $214 million compared to $206 million in the same period of 2010.

    Income tax expense for the first nine months of 2011 was $436 million compared to $410 million in the same period in 2010, reflecting effective tax rates of 34.2% and 34.7%, respectively.

    For the first half of 2011, net income attributable to Fresenius Medical Care AG & Co. KGaA was $761 million, up by 8% from the first nine months of 2010..

    In the first nine months of 2011, earnings per ordinary share rose by 7% to $2.51. The weighted average number of shares outstanding during the first nine months of 2011 was approximately 302.7 million. 

     

    Cash Flow

    Cash from operations during the first nine months of 2011 was $950 million compared to $1,027 million for the same period in 2010, representing approximately 10% of revenue.

    A total of $380 million in cash was spent for capital expenditures, net of disposals. Free cash flow before acquisitions for the first nine months of 2011 was $570 million compared to $688 million in the same period in 2010. A total of $1,171 million in cash was spent for acquisitions, net of divestitures. Free cash flow after acquisitions and divestitures was -$601 million compared to $318 million in the first nine months of last year.

    Please refer to the attachments for a complete overview on the third quarter and first nine months of 2011 and the reconciliation of non-GAAP financial measures included in this release to the most comparable GAAP financial measures.

     

    Patients - Clinics - Treatments

    As of September 30, 2011, Fresenius Medical Care treated 228,239 patients worldwide, which represents a 9% increase compared to the previous year’s figure. North America provided dialysis treatments for 140,422 patients, an increase of 3%. Including 22 clinics managed by Fresenius Medical Care North America, the number of patients in North America was 141,809. The International segment provided dialysis treatments to 87,817 patients, an increase of 18% over the prior year’s figure.

    As of September 30, 2011, the company operated a total of 2,874 clinics worldwide, which represents a 6% increase compared to the previous year’s figure. The number of clinics is comprised of 1,838 clinics in North America (1,860 including managed clinics), and 1,036 clinics in the International segment, representing an increase of 2% and 14%, respectively..

    During the first nine months of 2011, Fresenius Medical Care delivered approximately 25.46 million dialysis treatments worldwide. This represents an increase of 9% compared to last year’s figure. North America accounted for 16.11 million treatments, an increase of 4%. The International segment delivered 9.35 million treatments, an increase of 18%. 

     

    Employees

    As of September 30, 2011, Fresenius Medical Care had 77,825 employees (full-time equivalents) worldwide compared to 73,452 employees at the end of 2010. This increase of more than 4,300 employees is due to overall growth in the company’s business and acquisitions. 

     

    Debt/EBITDA Ratio

    The ratio of debt to Earnings before interest, taxes, depreciation and amortization (EBITDA) increased from 2.37 at the end of the third quarter of 2010 to 2.55 at the end of the third quarter of 2011. The debt/EBITDA ratio at the end of the second quarter 2011 was 2.77. 

     

    Rating

    Standard & Poor’s Ratings Services rates the company’s corporate credit as ‘BB’ with a ‘positive’ outlook. Moody's rates the company’s corporate credit as ‘Ba1’ with a ‘stable’ outlook, and Fitch rates the company’s corporate credit as ‘BB+’ with a ‘stable’ outlook. For further information on Fresenius Medical Care’s credit ratings, maturity profiles and credit instruments, please visit our website at www.fmc-ag.com / Investor Relations / Credit Relations. 

     

    Acquisition of American Access Care Completed

    The American Accesss Care (AAC) acquisition was closed effective October 1, 2011. AAC operates 28 freestanding out-patient centers primarily dedicated to serving vascular access needs of dialysis patients. The acquired operations will add approximately $175 million in annual revenue and are expected to be accretive to earnings in the first year after closing of the transaction. 

     

    Vifor Fresenius Medical Care Renal Pharma Ltd. Formation Completed

    After the recent clearance by the European Union antitrust commissions the formation of Vifor Fresenius Medical Care Renal Pharma Ltd. has been completed globally on November 1, 2011. 

     

    Acquisition of Liberty Dialysis Holdings, Inc.

    The acquisition of Liberty Dialysis Holdings, Inc. is on schedule and is expected to close in the first quarter of 2012. 

     

    Issuance of floating rate senior notes

    In October 2011, Fresenius Medical Care issued €-denominated floating rate senior notes in the principal amount of €100 million, due 2016. The coupon is equal to the three-month Euribor rate plus 350 basis points. 

     

    Issuance of senior notes

    In September 2011, Fresenius Medical Care issued $-denominated and €-denominated senior unsecured notes in the principal amounts of $400 million and €400 million, respectively, both due 2018. The coupon for the $ senior notes is 6.5%, and the coupon for the € senior notes is also 6.5%. Proceeds amounting to $949 million from the offering were used for acquisitions, to refinance indebtness and for general corporate purposes. 

     

    Sales and earnings outlook for 2011 confirmed

    For the full year 2011, the company confirms its sales and earnings outlook.

    Revenue is expected to grow to above $13 billion.

    Net income attributable to Fresenius Medical Care AG & Co. KGaA is expected to be between $1.070 billion and $1.090 billion.

    For 2011, the company expects to spend around 5% of revenue on capital expenditures and approximately $1.9 billion on acquisitions. The debt/EBITDA ratio is expected to be below 3.0 by the end of 2011.

    “With our execution to date we continue to achieve a strong operational performance with a strong focus on quality and expense control. We expect further earnings momentum in the fourth quarter this year, supported by the recent acquisitions and cost management. We are fully on track to achieve our full year guidance", said Ben Lipps, chief executive officer of Fresenius Medical Care. "We are particularly pleased with our success globally, given a persistently challenging business environment and the ongoing implementation of the new prospective payment system in the U.S. Our emphasis on innovation and patient care continues to serve us well.” 

     

    Conference Call

    Fresenius Medical Care will hold a conference call to discuss the results of the third quarter and first nine months of 2011 on Wednesday, November 2, 2011, at 3:30 p.m. CET / 10:30 a.m. EDT. The company invites investors to listen to the live webcast of the call at the company’s website www.fmc-ag.com in the “Investor Relations” section. A replay will be available shortly after the call.

    ***
    About Fresenius Medical Care
    Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 2 million individuals worldwide. Through its network of 2,874 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to 228,239 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products.

    Disclaimer
    This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.
    ***

    ]]>
    news-66 Tue, 02 Aug 2011 00:00:00 +0200 Fresenius Medical Care Reports Strong Second Quarter and Half Year Results; confirms Outlook for 2011 and plans to acquire Liberty Dialysis as well as American Access Care /en/media/news/details/detail/News/fresenius-medical-care-reports-strong-second-quarter-and-half-year-results-confirms-outlook-for-2011-and-plans-to-acquire-liberty-dialysis-as-well-as-american-access-care/ Second Quarter 2011 Summary
    Net revenue$3,194 million+8%
    Operating income (EBIT)$510 million+9%
    Net income attributable to Fresenius Medical Care AG & Co. KGaA$261 million+5%
    Earnings per share$0.86+4%

     
    First Half 2011 Summary

    Net revenue$6,230 million+7%
    Operating income (EBIT)$955 million+7%
    Net income attributable to Fresenius Medical Care AG & Co. KGaA$481 million+5%
    Earnings per share$1.59+4%


    Fresenius Medical Care AG & Co. KGaA (“the company” or “Fresenius Medical Care”; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world’s largest provider of dialysis products and services, today announced its results for the second quarter and first half of 2011.

    Second Quarter 2011: 

    Revenue

    Net revenue for the second quarter of 2011 increased by 8% to $3,194 million (+5% at constant currency) compared to the second quarter of 2010. Organic revenue growth worldwide was 3%. Dialysis services revenue grew by 6% to $2,362 million (+4% at constant currency) and dialysis product revenue increased by 15% to $832 million (+7% at constant currency).

    North America revenue for the second quarter of 2011 was at the same level as the corresponding quarter last year at $2,027 million including the impact of the new Medicare end-stage renal disease prospective payment system in the United States. Dialysis services revenue grew by 1% to $1,828 million with a same market growth of 3%. Average revenue per treatment for U.S. clinics decreased to $348 in the second quarter of 2011 compared to $356 for the corresponding quarter in 2010 reflecting the targeted implementation of the new prospective payment system. Dialysis product revenue decreased by 5% to $199 million, as increased sales of dialysis products could not entirely offset lower pricing of renal drugs.

    International revenue increased by 26% to $1,163 million (+15% at constant currency). Organic revenue growth was 8%. Dialysis services revenue increased by 31% to $534 million (+20% at constant currency). Dialysis product revenue increased by 23% to $629 million and increased by 11% at constant currency, mainly driven by higher sales of peritoneal dialysis products, dialyzers, products for acute care treatments and dialysis machines. 

    Earnings

    Operating income (EBIT) for the second quarter of 2011 increased by 9% to $510 million compared to $467 million in the second quarter of 2010. This resulted in an operating margin of 16.0% for the second quarter of 2011 compared to 15.8% for the corresponding quarter in 2010.

    In North America, the operating margin increased from 16.4% in the second quarter of 2010 to 17.2% in the second quarter of 2011. This increase was mainly favorably influenced by the development of pharmaceutical costs and higher income from the joint venture with Vifor Pharma. Average costs per treatment for U.S. clinics decreased to $283 in the second quarter of 2011 compared to $292 for the corresponding quarter in 2010.

    In the International segment, the operating margin decreased from 18.8% to 17.5% mainly due to unfavorable currency effects.

    Net interest expense for the second quarter of 2011 was $75 million compared to $68 million in the second quarter of 2010. This development was mainly attributable to a higher debt level.

    Income tax expense was $149 million for the second quarter of 2011 compared to $129 million in the second quarter of 2010. The effective tax rate increased to 34.2% from 32.4% mainly as a result of the positive effect in the second quarter of 2010 of the release of a $10 million valuation allowance.

    Net income attributable to Fresenius Medical Care AG & Co. KGaA for the second quarter of 2011 was $261 million, an increase of 5% compared to the corresponding quarter of 2010. Net income increased by 10% if adjusted by the positive tax effect in the second quarter of 2010.

    Earnings per share (EPS) for the second quarter of 2011 rose by 4% to $0.86 per ordinary share compared to $0.83 for the second quarter of 2010. The weighted average number of shares outstanding for the second quarter of 2011 was approximately 302.5 million shares compared to 300.0 million shares for the second quarter of 2010. The increase in shares outstanding resulted from stock option exercises in the past 12 months. 

    Cash Flow

    In the second quarter of 2011, the company generated $311 million in cash from operations, accomplishing the targeted 10% of revenue. The cash flow generation was supported by increased earnings and negatively influenced by an unfavorable development of days sales outstanding (DSO) and raised inventory levels.

    A total of $117 million in cash was spent for capital expenditures, net of disposals. Free cash flow before acquisitions was $194 million compared to $175 million in the second quarter of 2010. A total of $784 million in cash was spent for acquisitions and investments, net of divestitures.

    Free cash flow after acquisitions, investments and divestitures was -$590 million compared to -$26 million in the second quarter of 2010. This reflects the cash outflow related to the closing of the acquisition of Euromedic's dialysis service business. 

    First Half 2011: 

    Revenue and Earnings

    Net revenue for the first half of 2011 increased by 7% to $6,230 million (+5% at constant currencies) compared to the first half of 2010. Organic revenue growth was 3% in the first half of 2011.

    Operating income (EBIT) for the first half of 2011 increased by 7% to $955 million compared to $892 million in the first half of 2010. The operating income margin remained constant at 15.3% for the first half of 2011 as compared to the same period in 2010.

    Net interest expense for the first half of 2011 was $146 million compared to $135 million in the same period of 2010.

    Income tax expense for the first half of 2011 was $273 million compared to $257 million in the same period in 2010, reflecting effective tax rates of 33.8% and 33.9%, respectively.

    For the first half of 2011, net income attributable to Fresenius Medical Care AG & Co. KGaA was $481 million, up by 5% from the first half of 2010.

    In the first half of 2011, earnings per ordinary share rose by 4% to $1.59. The weighted average number of shares outstanding during the first half of 2011 was approximately 302.4 million. 

    Cash Flow

    Cash from operations during the first half of 2011 was $487 million compared to $643 million for the same period in 2010, representing approximately 8% of revenue.

    A total of $231 million in cash was spent for capital expenditures, net of disposals. Free cash flow before acquisitions for the first half of 2011 was $256 million compared to $425 million in the same period in 2010. A total of $1,122 million in cash was spent for acquisitions, net of divestitures. Free cash flow after acquisitions and divestitures was -$866 million compared to $142 million in the first half of last year.

    Please refer to the attachments for a complete overview on the second quarter and first half of 2011 and the reconciliation of non-GAAP financial measures included in this release to the most comparable GAAP financial measures. 

    Patients - Clinics - Treatments

    As of June 30, 2011, Fresenius Medical Care treated 225,909 patients worldwide, which represents a 12% increase compared to the previous year’s figure. North America provided dialysis treatments for 139,906 patients, an increase of 4%. Including 23 clinics managed by Fresenius Medical Care North America, the number of patients in North America was 141,420. The International segment provided dialysis treatments to 86,003 patients, an increase of 28% over the prior year’s figure.

    As of June 30, 2011, the company operated a total of 2,838 clinics worldwide, which represents a 10% increase compared to the previous year’s figure. The number of clinics is comprised of 1,826 clinics in North America (1,849 including managed clinics), and 1,012 clinics in the International segment, representing an increase of 2% and 26%, respectively.

    During the first half of 2011, Fresenius Medical Care delivered approximately 16.56 million dialysis treatments worldwide. This represents an increase of 9% compared to last year’s figure. North America accounted for 10.62 million treatments, an increase of 4%. The International segment delivered 5.94 million treatments, an increase of 18%. 

    Employees

    As of June 30, 2011, Fresenius Medical Care had 77,081 employees (full-time equivalents) worldwide compared to 73,452 employees at the end of 2010. This increase of more than 3,600 employees is due to overall growth in the company’s business and acquisition. 

    Debt/EBITDA Ratio

    The ratio of debt to Earnings before interest, taxes, depreciation and amortization (EBITDA) increased from 2.46 at the end of the second quarter of 2010 to 2.77 at the end of the second quarter of 2011. The debt/EBITDA ratio at the end of 2010 was 2.38. 

    Rating

    Standard & Poor’s Ratings Services rates the company’s corporate credit as ‘BB’ with a ‘positive’ outlook. Moody's rates the company’s corporate credit as ‘Ba1’ with a ‘stable’ outlook, and Fitch rates the company’s corporate credit as ‘BB’ with a ‘positive’ outlook. For further information on Fresenius Medical Care’s credit ratings, maturity profiles and credit instruments, please visit our website at www.fmc-ag.com / Investor Relations / Credit Relations.

    Acquisition of Euromedic’s dialysis service business completed

    On July 1, 2011, Fresenius Medical Care announced that it has completed the acquisition of Euromedic’s dialysis service business effective June 30, 2011. This follows final regulatory approvals by the relevant antitrust authorities except Portugal, where the review by the relevant antitrust authority is still ongoing. 

    Acquisition of Liberty Dialysis Holdings, Inc.

    Fresenius Medical Care has executed a merger agreement with Liberty Dialysis Holdings, Inc., the holding company for Liberty Dialysis and Renal Advantage. The investment, including assumed debt, will be approximately $1.7 billion. In addition, Fresenius Medical Care previously invested approximately $300 million in Renal Advantage. The merger is subject to clearance under the Hart–Scott–Rodino Antitrust Improvements Act and is expected to close in early 2012. Liberty Dialysis Holdings, Inc. has annual sales of approximately $1 billion and operates approximately 260 dialysis clinics. Fresenius Medical Care anticipates that facilities may need to be divested to secure regulatory clearance of the transaction. The transaction will be financed from cash flow from operations and debt and is expected to be accretive to earnings in the first year after closing of the transaction.

    Rice Powell, chief executive officer of Fresenius Medical Care North America and deputy chairman of Fresenius Medical Care, commented: “We are very pleased with this agreement. Both companies, Liberty Dialysis and Fresenius Medical Care, have three key assets in common: a strong commitment to continuous quality improvement, dedicated and highly-motivated staff and excellent physician partners.”

    Mark Caputo, chief executive officer and president of Liberty Dialysis Holdings, Inc, commented: “This combination of Liberty’s model of integrating physicians into the clinical and operational management of the facilities with Fresenius Medical Care’s focus on technology and experience with integrated delivery systems clearly gives us an opportunity to create a superior platform for innovation in the delivery of services and products and will further enhance the lives of patients entrusted to our care and reduce costs for the healthcare system.” 

    Acquisition of American Access Care

    Fresenius Medical Care has executed an agreement to acquire the U.S. based company American Access Care Holdings, LLC (AAC) for $385 million. AAC operates 28 freestanding out-patient centers primarily dedicated to serving vascular access needs of dialysis patients. Fresenius Medical Care currently operates 13 vascular access centers. The transaction is subject to clearance under the Hart–Scott–Rodino Antitrust Improvements Act and is expected to close in the fourth quarter of 2011. On completion, the acquired operations would add approximately $175 million in annual revenue and are expected to be accretive to earnings in the first year after closing of the transaction. The transaction will be financed from cash flow from operations and debt.

    The acquisition enables Fresenius Medical Care to achieve critical mass in its vascular access business and has strategic importance by virtue of the scale, resources and operational efficiency it brings to its vascular access operations, particularly when considering the U.S. Government’s proposal to include the type of access and the frequency of access-related infections within the quality outcome component of the dialysis bundled reimbursement system by 2014. 

    Sales and earnings outlook for 2011 confirmed

    For the full year 2011, the company confirms its sales and earnings outlook.

    Revenue is expected to grow to above $13 billion.

    Net income attributable to FMC AG & Co. KGaA is is expected to be between $1.070 billion and $1.090 billion.

    For 2011, the company expects to spend around 5% of revenue on capital expenditures and approximately $1.9 billion on acquisitions. Previously the company expected to spend approximately $1.2 billion on acquisitions. The debt/EBITDA ratio is expected to be below 3.0 by the end of 2011 (previously below or equal to 2.8).

    “Thanks to a consistent focus on quality, sustainable growth and expense control, we have maintained a strong operational performance this second quarter. We are particularly pleased with the success of our international region, given a persistently challenging business environment with the current debt crisis worldwide and the successful expansion of our clinic network in Asia-Pacific and Europe. North America continued to improve its operating margin and successfully cope with the challenges of the ongoing implementation of the new Medicare end-stage renal disease prospective payment system”, said Dr. Ben Lipps, chief executive officer of Fresenius Medical Care. “Our acquisitions of Liberty Dialysis and American Access Care in the U.S. are important steps in our strategy of expanding our service network to achieve excellent patient care in a more cost effective integrated model.” 

    Conference Call

    Fresenius Medical Care will hold a conference call to discuss the results of the second quarter and first half of 2011 on Tuesday, August 2, 2011, at 3:30 p.m. CEDT / 9:30 a.m. EDT. The company invites investors to view the live webcast of the call at the company’s website www.fmc-ag.com in the “Investor Relations” section. A replay will be available shortly after the call.

    Click here for a full version of the Investor News in PDF format. 

    ***
    About Fresenius Medical Care
    Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 2 million individuals worldwide. Through its network of 2,838 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to 225,909 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products.

    Disclaimer
    This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release. 

    ]]>
    news-213 Wed, 04 May 2011 19:47:00 +0200 Fresenius Medical Care Reports Strong Start for 2011 and Raises Guidance for Full Year 2011 /en/media/news/details/detail/News/fresenius-medical-care-reports-strong-start-for-2011-and-raises-guidance-for-full-year-2011/ First Quarter 2011 Summary:
    Net revenue $3,036 million +6%
    Operating income (EBIT) $445 million +5%
    Net income attributable to Fresenius Medical
    Care AG & Co. KGaA
    $221 million +5%
    Earnings per share $0.73+4%


    Fresenius Medical Care AG & Co. KGaA (“the company” or “Fresenius Medical Care”; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world’s largest provider of dialysis products and services, today announced its results for the first quarter of 2011.

    Revenue

    Net revenue for the first quarter of 2011 increased by 5% to $3,036 million (+5% at constant currency) compared to the first quarter of 2010. Organic revenue growth worldwide was 3%. Dialysis services revenue grew by 5% to $2,285 million (+5% at constant currency) and dialysis product revenue increased by 6% to $751 million (+5% at constant currency).

    North America revenue increased by 1% to $1,977 million including the impact of the new Medicare end-stage renal disease prospective payment system in the United States. Organic revenue growth was 1%. Dialysis services revenue grew by 1% to $1,782 million with a same market growth of 4%. Average revenue per treatment for U.S. clinics decreased to $348 in the first quarter of 2011 compared to $355 for the corresponding quarter in 2010 reflecting the targeted implementation of the new prospective payment system. Dialysis product revenue decreased by 2% to $195 million mainly due to lower pricing of renal drugs, partially offset by higher sales of dialysis products.

    International revenue increased by 14% to $1,055 million. Based on constant currency, revenue grew by 13%. Organic revenue growth was 6%. Dialysis services revenue was $503 million, an increase of 23% (+21% at constant currency). Dialysis product revenue increased by 8% to $552 million and increased by 6% at constant currency, mainly driven by higher sales of peritoneal dialysis products, dialyzers, bloodlines, and products for acute care treatments.

    Earnings

    Operating income (EBIT) for the first quarter of 2011 increased by 5% to $445 million compared to $425 million in the first quarter of 2010. This resulted in an operating margin of 14.7% for the first quarter of 2011 compared to 14.8% for the corresponding quarter in 2010.

    In North America, the operating margin increased from 15.7% to 15.8%. The margin development was mainly influenced by the favorable development of pharmaceutical costs and the negative effects of the implementation of the new Medicare end-stage renal disease prospective payment system in the United States.

    In the International segment, the operating margin decreased from 16.4% to 16.2%.

    Net interest expense for the first quarter of 2011 was $72 million, compared to $67 million in the first quarter of 2010. This development was mainly attributable to a higher debt level.

    Income tax expense was $124 million for the first quarter of 2011 compared to $128 million in the first quarter of 2010 and reflecting effective tax rates of 33.3% and 35.6%, respectively.

    Net income attributable to FMC AG & Co. KGaA for the first quarter of 2011 was $221 million, an increase of 5%, compared to the corresponding quarter of 2010.

    Earnings per share (EPS) for the first quarter of 2011 rose by 4% to $0.73 per ordinary share compared to $0.70 for the first quarter of 2010. The weighted average number of shares outstanding for the first quarter of 2011 was approximately 302.3 million shares, compared to 299.6 million shares for the first quarter of 2010. The increase in shares outstanding resulted from stock option exercises in the past 12 months.

    Cash Flow

    In the first quarter of 2011, the company generated $175 million in cash from operations, representing approximately 6% of revenue. The cash flow generation was supported by increased earnings and negatively influenced by an unfavorable development of DSOs, primarily related to the introduction of the new Medicare end-stage renal disease prospective payment system in the United States, and raised inventory levels.

    A total of $113 million was spent for capital expenditures, net of disposals. Free cash flow before acquisitions was $62 million compared to $250 million in the first quarter of 2010. A total of $339 million in cash was spent for acquisitions and investments, net of divestitures. Approximately $300 million of the expenditures was a minority investment in Renal Advantage Partners LLC, the parent company of Renal Advantage, Inc. Additionally, we have entered into agreements to provide renal products, pharmaceutical supplies and other services to Renal Advantage and Liberty Dialysis Inc.

    Free cash flow after acquisitions, investments and divestitures was -$277 million, compared to $168 million in the first quarter of 2010.

    Please refer to the appendix for a complete overview on the first quarter of 2011.

    Patients – Clinics – Treatments

    As of March 31, 2011, Fresenius Medical Care treated 216,942 patients worldwide, which represents a 9% increase compared to the previous year’s figure. North America provided dialysis treatments for 138,392 patients, an increase of 4%. Including 21 clinics managed by Fresenius Medical Care North America, the number of patients in North America was 139,887. The International segment served 78,550 patients, an increase of 20% over the prior year’s figure.

    As of March 31, 2011, the company operated a total of 2,769 clinics worldwide, which represents an 8% increase compared to the previous year’s figure. The number of clinics is comprised of 1,823 clinics in North America (1,844 including managed clinics), and 946 clinics in the International segment, representing an increase of 3% and 19%, respectively.

    During the first quarter of 2011, Fresenius Medical Care delivered approximately 8.17 million dialysis treatments worldwide. This represents an increase of 9%, compared to last year’s figure. North America accounted for 5.24 million treatments, an increase of 4%. The International segment delivered 2.93 million treatments, an increase of 19%.

    Employees

    As of March 31, 2011, Fresenius Medical Care had 74,844 employees (full-time equivalents) worldwide, compared to 73,452 employees at the end of 2010. This increase of more than 1,300 employees is due to overall growth in the company’s business and acquisitions.

    Debt/EBITDA ratio

    The ratio of debt to Earnings before interest, taxes, depreciation and amortization (EBITDA) increased from 2.30 at the end of the first quarter of 2010 to 2.55 at the end of the first quarter of 2011. The debt/EBITDA ratio at the end of 2010 was 2.38.

    Rating

    Standard & Poor’s Ratings Services continues to rate the company’s corporate credit as ‘BB’ with a ‘positive’ outlook. Moody's continues to rate the company’s corporate credit as ‘Ba1’ with a ‘stable’ outlook, and Fitch continues to rate the company’s corporate credit as ‘BB’ with a ‘positive’ outlook. For further information on Fresenius Medical Care’s credit ratings, maturity profiles and credit instruments, please visit our website at www.fmc-ag.com / Investor Relations / Credit Relations.

    Issuance of Senior Notes

    In 2011 Fresenius Medical Care issued $-denominated and €-denominated senior unsecured notes due 2021 in the respective principal amounts of $650 million and €300 million. The coupon for the $ senior notes is 5.75%, while the coupon for the € senior notes is 5.25%. The net proceeds amounted to approximately $1,035 million.

    Acquisition of dialysis service business from Euromedic

    On Jan. 4, 2011, Fresenius Medical Care announced the signing of a purchase agreement to acquire International Dialysis Centers (IDC), Euromedic’s dialysis service business for a purchase price of €485 million. Fresenius Medical Care is thus expanding its activities in the dialysis care market, especially in Eastern Europe, where IDC treats over 8,200 hemodialysis patients. The transaction remains subject to necessary regulatory approvals by the relevant anti-trust authorities and is expected to close in the second quarter of 2011. Upon completion, the acquired operations will add approximately $180 million in annual revenue and are expected to be accretive to earnings in the first year after closing of the transaction.

    Outlook for 2011 raised

    Based on the strong financial results in the first quarter of 2011 and the elimination of the so-called “transition adjustment” imposed on dialysis facilities (as part of the new Medicare end-stage renal disease prospective payment system) in the United States, the company raises its outlook for the full year 2011. 

    Revenue is now expected to grow to above $13 billion. Previously, the company expected revenue between $12.8 billion and $13.0 billion.

    Net income attributable to FMC AG & Co. KGaA is now expected between $1.070 billion and $1.090 billion. Previously, the company expected net income between $1.035 billion and $1.055 billion.

    For 2011, the company still expects to spend around 5% of revenue on capital expenditures and approximately $1.2 billion on acquisitions.

    The debt/EBITDA ratio is expected to be below or equal to 2.8 by the end of 2011, likewise unchanged from the previous guidance.

    “We are pleased to report a successful first quarter of 2011 with strong operational performance – despite the expected implementation challenges posed by the new Medicare end-stage renal disease prospective payment system in the United States”, said Ben Lipps, chief executive officer of Fresenius Medical Care. “We would again like to express our appreciation to the Centers for Medicare & Medicaid Services (CMS) and the Administration for making this correction, and for their willingness in the past years to work with the entire kidney care community in the process of establishing the new reimbursement system, helping to improve the quality of life of all dialysis patient covered by Medicare.”

    Conference Call

    Fresenius Medical Care will hold a conference call to discuss the results of the first quarter of 2011 on Wednesday, May 4, 2011, at 3:30 p.m. CEDT / 9:30 a.m. EDT. The Company invites investors to view the live webcast of the call at the Company’s website www.fmc-ag.com in the “Investor Relations” section. A replay will be available shortly after the call.

    Please click here for a PDF version of this news.

    ***

    Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 2 million individuals worldwide. Through its network of 2,769 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to 216,942 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products.

    Legal Disclaimer:
    This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

    ***

     

    ]]>
    news-232 Wed, 23 Feb 2011 19:47:00 +0100 Fresenius Medical Care Reports Excellent 4th Quarter and Full Year Results; Strong Outlook for 2011 /en/media/news/details/detail/News/fresenius-medical-care-reports-excellent-4th-quarter-and-full-year-results-strong-outlook-for-2011/ 4th Quarter 2010 Summary:
    Net revenue $3,167 million +4%
    Operating income (EBIT) $539 million +10%
    Net income attributable to
    Fresenius Medical Care AG & Co. KGaA
    $271 million +10%
    Earnings per share $2.90+9%

     

    2010 Full-Year Summary:

    Net revenue $12,053 million$7%
    Operating income (EBIT) $1,924 million+10%
    Net income attributable to
    Fresenius Medical Care AG & Co. KGaA
    $979 million+10%
    Earnings per share $3.25+9%
    Dividend Proposal Ordinary share0.65+7%
    Dividend Proposal Preference share 0.67+6%


    Fresenius Medical Care AG & Co. KGaA (the company or Fresenius Medical Care; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world’s largest provider of dialysis products and services, today announced its results for the fourth quarter and full year of 2010.

    4th-Quarter 2010:

    Revenue

    Net revenue for the fourth quarter of 2010 increased by 4% to $3,167 million (+5% at constant currency) compared to the fourth quarter of 2009. Organic revenue growth worldwide was 4%. Dialysis services revenue grew by 6% to $2,354 million (+6% at constant currency) in the fourth quarter of 2010. Dialysis product revenue increased from $809 million in the fourth quarter of 2009 to $813 million in the fourth quarter of 2010, which corresponds to 3% growth at constant currency.

    North America revenue increased by 3% to $2,072 million. Organic revenue growth was 3%. Dialysis services revenue grew by 3% to $1,862 million. Average revenue per treatment for U.S. clinics decreased to $355 in the fourth quarter of 2010 compared to $357 for the corresponding quarter in 2009. Developments were favorably impacted by reimbursement increases, while this was more than offset by reduced utilization of pharmaceuticals. Dialysis product revenue decreased by 1% to $210 million. The company’s performance was impacted favorably by higher sales of machines and bloodlines. This was mainly offset by changes in the dialysis products mix and lower Medicare average selling prices for the intravenous iron product Venofer®.

    International revenue increased by 7% to $1,095 million. Based on constant currency, revenue grew by 10%. Organic revenue growth was 5%. Dialysis services revenue was $492 million, an increase of 15% (+18% at constant currency). Dialysis product revenue increased by 1% to $603 million and increased by 4% at constant currency, led by higher sales of machines and dialyzers.

    Earnings

    Operating income (EBIT) for the fourth quarter of 2010 increased by 10% to $539 million compared to $491 million in the fourth quarter of 2009. This resulted in an operating margin of 17.0% compared to 16.2% for the corresponding quarter in 2009.

    In North America, the operating margin increased from 17.7% to 17.9%. The margin development benefitted primarily from favorable pharmaceutical costs and personnel expenses, partially offset by a decrease in revenue per treatment.

    In the International segment, the operating margin increased from 17.6% to 18.0% mainly due to economies of scale and favorable currency effects, partially offset by lower gross profit margins of acquired clinics.

    Net interest expense expense for the fourth quarter of 2010 was $74 million compared to $75 million in the comparable quarter of 2009. This development was influenced favorably by decreased short-term interest rates.

    Income tax expense was $169 million for the fourth quarter of 2010 compared to $145 million in the fourth quarter of 2009, reflecting effective tax rates of 36.3% and 34.9%, respectively.

    Net income attributable to FMC AG & Co. KGaA for the fourth quarter of 2010 was $271 million, an increase of 10% compared to the corresponding quarter of 2009.

    Earnings per share (EPS) for the fourth quarter of 2010 rose by 9% to $0.90 per ordinary share compared to $0.82 for the fourth quarter of 2009. The weighted average number of shares outstanding for the fourth quarter of 2010 was approximately 302.1 million shares compared to 299.0 million shares for the fourth quarter of 2009. The increase in shares outstanding resulted from stock option exercises in the past twelve months.

    Cash Flow

    In the fourth quarter of 2010, the company generated $341 million in cash from operations, representing approximately 11% of revenue. The cash flow generation was supported by increased earnings. 

    A total of $168 million was spent for capital expenditures, net of disposals. Free Cash Flow before acquisitions was $173 million compared to $285 million in the fourth quarter of 2009. A total of $379 million in cash was spent for acquisitions, net of divestitures. Free Cash Flow after acquisitions and divestitures and excluding short-term investments was minus $206 million compared to $206 million in the fourth quarter of 2009.

    Full Year 2010:

    Revenue and Earnings

    Net revenue for the full year 2010 was $12,053 million, up 7% from the full year 2009. At constant currency, net revenue also rose 7%. Organic growth was 6% in 2010.

    Operating income (EBIT) for the full year 2010 increased by 10% to $1,924 million compared to $1,756 million in 2009. This resulted in an operating margin of 16.0% compared to 15.6% for 2009.

    Net interest expense for the full year 2010 was $280 million compared to $300 million in the corresponding period of 2009.

    Income tax expense was $578 million in the full year 2010 compared to $491 million in 2009. These reflect effective tax rates of 35.2% and 33.7%, respectively.

    For the full year 2010, net income attributable to FMC AG & Co. KGaA was $979 million, up 10% from 2009.

    In the full year 2010, earnings per ordinary share rose 9% to $3.25. The weighted average number of shares outstanding during the full year 2010 was approximately 300.7 million.

    Cash Flow

    Cash from operations during 2010 was $1,368 million compared to $1,339 million for 2009, representing approximately 11% of revenue.

    A total of $507 million was spent for capital expenditures, net of disposals. Free Cash Flow before acquisitions for the full year 2010 was $861 million compared to $777 million in 2009. A total of $618 million in cash was spent for acquisitions, net of divestitures. Free Cash Flow after acquisitions and divestitures and excluding short-term investments was $243 million compared to $591 million in 2009.

    Please refer to the attachments for a complete overview on the fourth quarter and the full year of 2010 and the reconciliation of non-GAAP financial measures included in this release to the most comparable GAAP financial measures.

    Patients - Clinics - Treatments

    As of Dec. 31, 2010, Fresenius Medical Care treated 214,648 patients worldwide, which represents a 10% increase compared to the previous year. North America provided dialysis treatments for 137,689 patients, an increase of 4%. Including 30 clinics managed by Fresenius Medical Care North America, the number of patients in North America was 139,327. The International segment served 76,959 patients, an increase of 21% over the prior year.

    As of Dec. 31, 2010, the company operated a total of 2,757 clinics worldwide, which represents an 8% increase compared to the previous year’s figure. The number of clinics is comprised of 1,823 clinics in North America (1,853 including managed clinics) and 934 clinics in the International segment, representing an increase of 2% and 21%, respectively.

    During the year 2010, Fresenius Medical Care delivered approximately 31.67 million dialysis treatments worldwide. This represents an increase of 8% compared to last year. North America accounted for 20.85 million treatments, an increase of 5%; the International segment delivered 10.82 million treatments, an increase of 13%.

    Employees

    As of Dec. 31, 2010, Fresenius Medical Care had 73,452 employees (full-time equivalents) worldwide compared to 67,988 employees at the end of 2009. The increase of more than 5,400 employees is due to overall growth in the company’s business and acquisitions.

    Dividend

    The company will continue to follow an earnings-driven dividend policy. For the 14th consecutive year, shareholders can expect to receive an increased annual dividend for the fiscal year 2010. At the Annual General Meeting to be held on May 12, 2011, shareholders will be asked to approve a dividend of €0.65 per ordinary share, an increase of 7% from 2009 (€0.61).

    Debt/EBITDA Ratio

    The ratio of debt to Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) decreased from 2.46 at the end of 2009 to 2.38 at the end of 2010.

    Rating

    Standard & Poor’s Rating Services continued to rate the company’s corporate credit as ‘BB’ with a ‘positive’ outlook. Moody's continued to rate the company’s corporate credit as ‘Ba1’ with a ‘stable’ outlook, and Fitch continued to rate the company’s corporate credit as ‘BB’ with a ‘positive’ outlook. For further information on Fresenius Medical Care’s credit ratings, maturity profiles and credit instruments, please visit our website at www.fmc-ag.com / Investor Relations / Credit Relations.

    Issuance of Senior Notes

    In January 2011 Fresenius Medical Care issued $-denominated and €-denominated senior unsecured notes in the principal amounts of $650 million and €300 million, respectively, both due 2021. The coupon for the $ senior notes is 5.75%, while the coupon for the € senior notes is 5.25%. Net proceeds amounting to approximately $1,035 million from the offering will be used to repay indebtness, for acquisitions including the company’s recently announced acquisition of Euromedic’s dialysis service business and for general corporate purposes to support the renal products and services business.

    Contract for comprehensive dialysis care reimbursement in Spain

    On Jan. 19, 2011, Fresenius Medical Care announced a cooperation agreement with the public health authorities in the Murcia region of Spain for the country’s first comprehensive dialysis care and performance-oriented reimbursement model. Under this agreement, Fresenius Medical Care will provide dialysis therapy to approximately 200 renal patients in the region. The contract will be effective from mid-2011. The reimbursement will be converted from a “fee-for-service” basis to an all-inclusive “bundled” rate that is tied to Fresenius Medical Care’s quality performance.

    Acquisition of dialysis service business from Euromedic

    On Jan. 4, 2011, Fresenius Medical Care announced the signing of a purchase agreement to acquire International Dialysis Centers (IDC), Euromedic’s dialysis service business. Fresenius Medical Care thus is expanding its activities in the dialysis care market, especially in Eastern Europe, where IDC treats over 8,200 hemodialysis patients. The transaction remains subject to necessary regulatory approvals by the relevant anti-trust authorities and is expected to close in the second quarter of 2011. On completion, the acquired operations will add approximately $180 million in annual revenue and are expected to be accretive to earnings in the first year after closing of the transaction. The purchase price is €485 million. 

    Acquisition of Gambro’s Peritoneal Dialysis Business Completed

    On Dec. 27, 2010, Fresenius Medical Care announced the closing of its acquisition of Gambro’s worldwide peritoneal dialysis (PD) business that marked the successful completion of regulatory approvals by the relevant antitrust authorities, except Serbia where it is still pending. Fresenius Medical Care took advantage of Gambro’s decision to prioritize its investments in the hemodialysis field to expand the activities in the homecare market, especially in Europe and Asia-Pacific.

    Formation of renal pharmaceutical company

    On Dec. 1, 2010, Fresenius Medical Care and the Swiss-based company Galenica announced the formation of a new renal pharmaceutical company named Vifor Fresenius Medical Care Renal Pharma Ltd. It is designed to develop and distribute on a worldwide basis products to treat iron deficiency anaemia and bone mineral metabolism for pre-dialysis and dialysis patients. The products will include Venofer® and Ferinject® (Injectafer®, the brand name for Ferinject® in the USA) within the field of dialysis and pre-dialysis (CKD stage III – V) as well as PA21, a novel iron-based phosphate binder. This investment allows Fresenius Medical Care to take the next major implementation step in its renal pharmaceutical strategy. Fresenius Medical Care will hold a 45% share in the new company. The transaction is subject to final antitrust approval in certain regions.

    Outlook for 2011

    For the year 2011, the company expects revenue to grow to between $12.8 billion and $13.0 billion, corresponding to a growth rate of 6% to 8%.

    Net income attributable to FMC AG & Co. KGaA is expected to be between $1.035 billion and $1.055 billion, with operating margins forecast to increase by approximately 20 basis points.

    For 2011, the company expects to spend around 5% of revenue on capital expenditures and approximately $1.2 billion on acquisitions. The debt/EBITDA ratio is expected to be below 2.8 by the end of 2011. ”

    Webcast

    Fresenius Medical Care will hold an analyst meeting at its headquarters in Bad Homburg, Germany, to discuss the results of the fourth quarter and the full year of 2010 on Wednesday, Feb. 23, 2011, at 3:15 p.m. CET / 9:15 a.m. EDT. The company invites investors to view the live webcast of the meeting at the company’s website www.fmc-ag.com in the “Investor Relations” section. A replay will be available shortly after the meeting. 

    Click here for a full version of the Press Release in PDF format.

     

    ***

    About Fresenius Medical Care
    Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 1.89 million individuals worldwide. Through its network of 2,757 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to 214,648 patients around the globe. Fresenius Medical Care also is the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products.

    Disclaimer
    This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

    ***

     

     

    ]]>
    news-22 Tue, 02 Nov 2010 00:00:00 +0100 Fresenius Medical Care Reports Excellent Third Quarter and Nine Months Results and Improves Outlook for 2010 /en/media/news/details/detail/News/fresenius-medical-care-reports-excellent-third-quarter-and-nine-months-results-and-improves-outlook-for-2010/ Summary Third Quarter 2010:
    Net revenue$3,058 million+6%
    Operating income (EBIT)$493 million+9%
    Net income attributable to Fresenius Medical Care AG & Co. KGaA$248 million+10%
    Earnings per share $0.85+9%


    Summary First Nine Months 2010:

    Net revenue$8,886 million+8%
    Operating income (EBIT)$1,385 million+10%
    Net income attributable to Fresenius Medical Care AG & Co. KGaA$707 million+10%
    Earnings per share$2.35+9%

     

    Fresenius Medical Care AG & Co. KGaA (“the Company” or “FMC AG & Co. KGaA”; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world’s largest provider of dialysis products and services, today announced its results for the third quarter and first nine months of 2010.

    Third Quarter 2010:

    Revenue

    Net revenue for the third quarter of 2010 increased by 6% to $3,058 million (+7% at constant currency) compared to the third quarter of 2009. Organic revenue growth worldwide was 6%. Dialysis services revenue grew by 8% to $2,321 million (+9% at constant currency) in the third quarter of 2010. Dialysis product revenue decreased by 1% to $737 million and increased by 3% at constant currency in the same period.


    North America revenue increased by 6% to $2,071 million. Organic revenue growth was 6%. Dialysis services revenue grew by 7% to $1,863 million. Average revenue per treatment for U.S. clinics increased to $359 in the third quarter of 2010 compared to $348 for the same quarter in 2009 and $356 for the second quarter of 2010. This development was attributable principally to reimbursement increases. Dialysis product revenue slightly decreased from $209 million in the third quarter of 2009 to $208 million in the third quarter of 2010. Sales performance was impacted favorably by higher sales of bloodlines and machines as well as higher product sales in the home therapy market. This was offset by changes in the dialysis products mix and lower Medicare average selling prices (ASP) for the intravenous iron product Venofer®.


    International revenue increased by 5% to $987 million. Based on constant currency, revenue grew by 9%. Organic revenue growth was 5%. Dialysis services revenue was $458 million, an increase of 13% (+17% at constant currency). Dialysis product revenue decreased by 1% to $529 million compared to the corresponding figure last year and increased by 4% at constant currency, led by increased sales of dialyzers, machines and bloodlines as well as products for acute care treatments. 

    Earnings 

    Operating income (EBIT) for the third quarter of 2010 increased by 9% to $493 million compared to $451 million in the third quarter of 2009 resulting in an operating margin of 16.1% compared to 15.6% for the corresponding quarter in 2009.

    In North America, the operating margin increased from 16.7% to 18.1%. The margin development benefitted primarily from an increase in revenue per treatment as well as the effect of economies of scale. 

    In the International segment, the operating margin decreased from 16.7% to 15.8% due to lower gross profit margins of acquired clinics in Europe and Asia-Pacific, the impact of Venezuelan hyperinflation and higher bad debt expense. This was partially offset by economies of scale and favorable currency effects.

    Net interest expense for the third quarter of 2010 was $70 million compared to $75 million in the comparable quarter of 2009, mainly attributable to lower short-term interest rates.

    Income tax expense was $153 million for the third quarter of 2010 compared to $131 million in the third quarter of 2009, reflecting effective tax rates of 36.2% and 35.0%, respectively. The tax rate for full year 2010 is expected to be between 34.5% and 35.5%. 

    Net income attributable to FMC AG & Co. KGaA for the third quarter of 2010 was $248 million, an increase of 10% compared to the same quarter of 2009. 

    Earnings per share (EPS) for the third quarter of 2010 rose by 9% to $0.82 per ordinary share compared to $0.76 for the third quarter of 2009. The weighted average number of shares outstanding for the third quarter of 2010 was approximately 301.2 million shares compared to 298.3 million shares for the third quarter of 2009. The increase in shares outstanding resulted from stock option exercises in the past twelve months.

    Cash Flow

    In the third quarter of 2010, the Company generated $384 million in cash from operations, representing approximately 13% of revenue. The cash flow generation was supported by increased earnings.

    A total of $121 million was spent for capital expenditures, net of disposals. Free Cash Flow before acquisitions was $263 million compared to $304 million in the third quarter of 2009. A total of $87 million in cash was spent for acquisitions, net of divestitures. Free Cash Flow after acquisitions and divestitures was $176 million compared to $278 million in the third quarter of last year.

    Nine Months of 2010: 

    Revenue and Earnings

    Net revenue for the first nine months of 2010 was $8,886 million, up 8% from the first nine months of 2009. At constant currency, net revenue also rose 8%. Organic growth was 6% in the first nine months of 2010.

    Operating income (EBIT) for the first nine months of 2010 increased by 10% to $1,385 million compared to $1,265 million in the first nine months of 2009, resulting in an operating margin of 15.6% compared to 15.4% for the first nine months of 2009. 

    Net interest expense for the first nine months of 2010 was $206 million compared to $225 million in the same period of 2009.

    Income tax expense was $410 million in the first nine months of 2010 compared to $345 million in the same period of 2009, reflecting effective tax rates of 34.7% and 33.2%, respectively. 

    For the first nine months of 2010, net income attributable to FMC AG & Co. KGaA was $707 million, up 10% from the first nine months of 2009.

    In the first nine months of 2010, earnings per ordinary share rose 9% to $2.35. The weighted average number of shares outstanding during the first nine months of 2010 was approximately 300.3 million.

    Cash Flow

    Cash from operations during the first nine months of 2010 was $1,027 million compared to $880 million for the same period in 2009, representing approximately 12% of revenue.

    A total of $339 million was spent for capital expenditures, net of disposals. Free Cash Flow before acquisitions for the first nine months of 2010 was $688 million compared to $492 million in the same period in 2009. A total of $239 million in cash was spent for acquisitions, net of divestitures. Free Cash Flow after acquisitions and divestitures was $449 million compared to $385 million in the first nine months of last year.

    Please refer to the attachments for a complete overview on the third quarter and first nine months of 2010 and the reconciliation of non-GAAP financial measures included in this release to the most comparable GAAP financial measures.

    Patients - Clinics - Treatments

    As of September 30, 2010, Fresenius Medical Care treated 210,191 patients worldwide, which represents an 9% increase compared to the previous year. North America provided dialysis treatments for 135,746 patients, the number of patients treated rose by 4%. Including 30 clinics managed by Fresenius Medical Care North America the number of patients in North America was 137,623. The International segment served 74,445 patients, the number of patients treated increased by 20%.

    As of September 30, 2010, the Company operated a total of 2,716 clinics worldwide, which represents an 8% increase compared to the previous year. The number of clinics is comprised of 1,809 clinics in North America (1,839 including managed clinics) and 907 clinics in the International segment, representing an increase of 3% and 19%, respectively.

    Fresenius Medical Care delivered approximately 23.41 million dialysis treatments worldwide during the first nine months of 2010. This represents an increase of 7% compared to the corresponding period last year. North America accounted for 15.51 million treatments, an increase of 5%, and the International segment delivered 7.9 million treatments, an increase of 11%.

    Employees

    As of September 30, 2010, Fresenius Medical Care had 72,812 employees (full-time equivalents) worldwide compared to 67,988 employees at the end of 2009. The increase of approximately 4,800 employees is due to overall growth in the Company’s business and acquisitions.

    Debt/EBITDA Ratio

    The ratio of debt to Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) decreased from 2.62 at the end of the third quarter of 2009 to 2.37 at the end of the third quarter 2010. At the end of 2009, the debt/EBITDA ratio was 2.46.

    Rating

    Standard & Poor’s Rating Services continued to rate the Company’s corporate credit as ‘BB’ with a ‘positive’ outlook. Moody's continued to rate the Company’s corporate credit as ‘Ba1’ with a ‘stable’ outlook. Fitch rates the Company’s corporate credit as ‘BB’. On August 3, 2010, Fitch raised the outlook from ‘stable’ to ‘positive’. For further information on Fresenius Medical Care’s credit ratings, maturity profiles and credit instruments, please visit our website at www.fmc-ag.com / Investor Relations / Credit Relations. 

    Agreement to acquire Gambro’s worldwide peritoneal dialysis business

    On August 26, 2010, Fresenius Medical Care announced that it had signed an agreement to acquire Gambro’s worldwide peritoneal dialysis (PD) business. Gambro decided to prioritize its investments in the hemodialysis field. Fresenius Medical Care is taking advantage of this opportunity to expand its activities in the homecare market, especially in Europe and Asia-Pacific. Completion of the acquisition is still subject to regulatory approvals by the relevant antitrust authorities as well as works council consultations in some jurisdictions.

    Extension of credit agreement

    On October 1, 2010, Fresenius Medical Care announced successful completion of the upsizing and extension of its senior secured credit facility. The refinancing of the revolving facility and Term Loan A enables the Company to upsize these facilities by $250 million for a total facility of $2.565 billion. The new agreement was extended from March 31, 2011, to March 31, 2013, matching the final maturity of the $1.546 billion Term Loan B. The facilities will be used for general corporate purposes and working capital needs.

    Improved Outlook for 2010 

    Based on the strong operational performance in the first nine months of 2010, the Company improves its outlook for the full year 2010 and now expects net income attributable to FMC AG & Co. KGaA to be between $960 million and $980 million. Previously, the Company expected net income in the range of $950 million to $980 million.

    Revenue is still expected to grow to more than $12 billion.

    For 2010 the Company expects to spend $550 million to $650 million on capital expenditures and up to $500 million on acquisitions. The debt/EBITDA ratio is expected to be below 2.5 by the end of 2010.

    “Given our excellent third quarter results, we have improved our guidance for the full year 2010.” said Ben Lipps, Chief Executive Officer of Fresenius Medical Care. “Our operating performance in North America has continued to develop favorably, and we have seen good treatment growth. In International, we have continued to expand our clinic network with significant dialysis clinic acquisitions in selected countries. We remain focused to continuously improve our quality performance and operating efficiency.”

    Conference Call

    Fresenius Medical Care will hold a conference call to discuss the results of the third quarter and the first nine months of 2010 on Tuesday, November 2, 2010, at 3:30 p.m. CET / 10:30 a.m. EDT. The Company invites investors to listen to the live webcast of the call at the Company’s website www.fmc-ag.com in the “Investor Relations” section. A replay will be available shortly after the call.

    Click here for a full version of the news in PDf format.

     

    ***

    Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 1.89 million individuals worldwide. Through its network of 2,716 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to 210,191 patients around the globe. Fresenius Medical Care also is the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME, FME3) and the New York Stock Exchange (FMS, FMS/P).

    This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release. 

    ***

    ]]>
    news-29 Tue, 03 Aug 2010 00:00:00 +0200 Fresenius Medical Care Reports Strong Second Quarter and Half Year Results and Confirms Outlook for 2010 /en/media/news/details/detail/News/fresenius-medical-care-reports-strong-second-quarter-and-half-year-results-and-confirms-outlook-for-2010/ Summary Second Quarter 2010: 
    Net revenue $2,946 Mio.+7%
    Operating Income (EBIT) $465 Mio.+11%
    Net income attributable to Fresenius Medical Care AG & Co. KGaA $248 Mio.+12%
    Earnings per share $0.83+12%

     

    Summary First Half 2010: 

    Net revenue $5,828 Mio.+9%
    Operating Income (EBIT) $888 Mio.+9%
    Net income attributable to Fresenius Medical Care AG & Co. KGaA $459 Mio.+10%
    Earnings per share $1.53+9%

     

    Fresenius Medical Care AG & Co. KGaA (“the Company” or “FMC AG & Co. KGaA”; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world’s largest provider of dialysis products and services, today announced its results for the second quarter and first half of 2010.

    Second Quarter 2010

    Revenue

    Net revenue for the second quarter of 2010 increased by 7% to $2,946 million (also +7% at constant currency) compared to the second quarter of 2009. Organic revenue growth worldwide was 6%. Dialysis services revenue grew by 8% to $2,224 million (also +8% at constant currency) in the second quarter of 2010. Dialysis product revenue rose by 2% to $722 million (+3% at constant currency) in the same period.

    North America revenue increased by 8% to $2,027 million. Organic revenue growth was 7%. Dialysis services revenue grew by 8% to $1,817 million. Average revenue per treatment for U.S. clinics increased to $356 in the second quarter of 2010 compared to $344 for the same quarter in 2009 and $355 for the first quarter of 2010. This development was attributable principally to reimbursement increases and increased utilization of pharmaceuticals. Dialysis product revenue increased by 5% to $210 million due to higher sales of hemodialysis disposables and dialysis machines.

    International revenue increased by 4% to $919 million. Based on constant currency, revenue grew by 5%. Organic revenue growth was 3%. Dialysis services revenue was $407 million, an increase of 8% (+9% at constant currency). Dialysis product revenue was stable at $512 million compared to the corresponding figure last year and increased by 2% at constant currency, led by increased sales of hemodialysis solutions and concentrates, dialyzers and bloodlines as well as products for acute care treatment.

    Earnings

    Operating income (EBIT) increased by 11% to $465 million compared to $418 million in the second quarter of 2009 resulting in an operating margin of 15.8% compared to 15.1% for the corresponding quarter in 2009.

    In North America, the operating margin increased from 15.9% to 16.3% in the second quarter of 2010. The margin development was mainly impacted favorably by an increase in revenue per treatment as well as the effect of economies of scale from revenue growth.

    In the International segment, the operating margin increased from 17.3% to 18.8%. The margin development was mainly influenced positively by economies of scale from revenue growth, favorable foreign exchange rates and lower bad debt expenses. This was partially offset by higher depreciation expenses as a result of the expansion of our production capacities.

    Net interest expense for the second quarter of 2010 was $68 million compared to $76 million in the comparable quarter of 2009, mainly attributable to lower short-term interest rates.

    Income tax expense was $129 million for the second quarter of 2010 compared to $103 million in the second quarter of 2009, reflecting effective tax rates of 32.6% and 30.2%, respectively. In both the second quarter of 2010 and 2009 tax expense benefited from changes in estimates of future tax payments.

    Net income attributable to FMC AG & Co. KGaA for the second quarter of 2010 was $248 million, an increase of 12% compared to the same quarter of 2009.

    Earnings per share (EPS) for the second quarter of 2010 rose by 12% to $0.83 per ordinary share compared to $0.74 for the second quarter of 2009. The weighted average number of shares outstanding for the second quarter of 2010 was approximately 300.0 million shares compared to 298.0 million shares for the second quarter of 2009. The increase in shares outstanding resulted from stock option exercises in the past twelve months.

    Cash Flow

    In the second quarter of 2010, the Company generated $294 million in cash from operations, representing approximately 10% of revenue. The cash flow performance was influenced positively by improvements in elements of working capital and increased earnings, partially offset by higher income tax payments.

    A total of $119 million was spent for capital expenditures, net of disposals. Free Cash Flow before acquisitions was $175 million compared to $143 million in the second quarter of 2009. A total of $68 million in cash was spent for acquisitions, net of divestitures. Free Cash Flow after acquisitions and divestitures was $107 million compared to $98 million in the second quarter of last year.

    First Half of 2010:

    Revenue and Earnings

    Net revenue was $5,828 million, up 9% from the first half of 2009. At constant currency, net revenue rose 8%. Organic growth was 7% in the first six months of 2010.

    Operating income (EBIT) increased by 9% to $888 million compared to $813 million in the first half of 2009, resulting in an operating margin of 15.2% compared to 15.3% for the first half of 2009.

    Net interest expense for the first six months of 2010 was $135 million compared to $149 million in the same period of 2009.

    Income tax expense was $257 million in the first half of 2010 compared to $214 million in the same period in 2009, reflecting effective tax rates of 34.1% and 32.2%, respectively.

    For the first half of 2010, net income attributable to FMC AG & Co. KGaA was $459 million, up 10% from the first half of 2009.

    In the first six months of 2010, earnings per ordinary share rose 9% to $1.53. The weighted average number of shares outstanding during the first half of 2010 was approximately 299.8 million.

    Cash Flow

    Cash from operations during the first six months of 2010 was $643 million compared to $437 million for the same period in 2009, representing approximately 11% of revenue.

    A total of $218 million was spent for capital expenditures, net of disposals. Free Cash Flow before acquisitions for the first six months of 2010 was $425 million compared to $188 million in the same period in 2009. A total of $150 million in cash was spent for acquisitions, net of divestitures. Free Cash Flow after acquisitions and divestitures was $275 million compared to $107 million in the first half of last year.

    Please refer to the attachments for a complete overview on the second quarter and first half of 2010 and the reconciliation of non-GAAP financial measures included in this release to the most comparable GAAP financial measures.

    Patients - Clinics - Treatments

    As of June 30, 2010, Fresenius Medical Care treated 202,414 patients worldwide, which represents a 6% increase compared to the previous year. North America provided dialysis treatments for 135,088 patients, the number of patients treated rose by 5%. Including 29 clinics managed by Fresenius Medical Care North America, the number of patients in North America was 136,884. The International segment served 67,326 patients, the number of patients treated increased by 11%.

    As of June 30, 2010, the Company operated a total of 2,599 clinics worldwide, which represents a 5% increase compared to the previous year. The number of clinics is comprised of 1,795 clinics in North America (1,824 including managed clinics) and 804 clinics in the International segment, representing an increase of 4% and 9%, respectively.

    Fresenius Medical Care delivered approximately 15.26 million dialysis treatments worldwide during the first six months of 2010. This represents an increase of 6% compared to the corresponding period last year. North America accounted for 10.22 million treatments, an increase of 6%, and the International segment delivered 5.03 million treatments, an increase of 8%.

    Employees

    As of June 30, 2010, Fresenius Medical Care had 70,096 employees (full-time equivalents) worldwide compared to 67,988 employees at the end of 2009. The increase of approximately 2,100 employees is due to overall growth in the Company’s business.

    Debt/EBITDA Ratio

    The ratio of debt to Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) decreased from 2.78 at the end of the second quarter of 2009 to 2.46 at the end of the second quarter 2010. At the end of 2009, the debt/EBITDA ratio was 2.46.

    Rating

    Standard & Poor’s Rating Services continued to rate the Company’s corporate credit as ‘BB’. On April 29, 2010, Standard & Poor’s has raised the outlook from ‘stable’ to ‘positive’. Moody's continued to rate the Company’s corporate credit as ‘Ba1’ with a ‘stable’ outlook. Fitch rates the Company’s corporate credit as ‘BB’ also with a ‘stable’ outlook. For further information on Fresenius Medical Care’s credit ratings, maturity profiles and credit instruments, please visit our website at www.fmc-ag.com / Investor Relations / Credit Relations.

    Outlook for 2010 fully confirmed

    For the full year of 2010, the Company confirms its outlook.

    Revenue is expected to grow to more than $12 billion.

    Net income attributable to FMC AG & Co. KGaA is expected to be between $950 million and $980 million in 2010.

    The Company expects to spend $550 million to $650 million on capital expenditures and up to $500 million (previously up to $400 million) on acquisitions. The debt/EBITDA ratio is expected to be below 2.5 by the end of 2010.

    Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented: “We are pleased to report that, after our successful start into the year, Fresenius Medical Care has carried forward a strong performance this past quarter and half year that is fully on track with our full-year guidance and strategy. Our operational performance, but also our quality performance in products and services has been excellent. We have continued to strategically expand our global presence in dialysis services through acquisitions in attractive growing markets such as the Russian Federation and Asia. And we look forward to the opportunities posed by the upcoming “bundled” reimbursement system in the U.S. – opportunities we feel we are uniquely poised to seize, given our vertical integration and consistent focus on delivering the best quality care for our patients in the most efficient way possible.”

    Conference Call

    Fresenius Medical Care will hold a conference call to discuss the results of the second quarter and the first half year of 2010 on Tuesday, August 3, 2010, at 3:30 p.m. CEDT / 9:30 a.m. EDT. The Company invites investors to listen to the live webcast of the call at the Company’s website www.fmc-ag.com in the “Investor Relations” section. A replay will be available shortly after the call.

    Click here for a full version of this news in PDF format.

     

    ***

    Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 1.89 million individuals worldwide. Through its network of 2,599 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to 202,414 patients around the globe. Fresenius Medical Care also is the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME, FME3) and the New York Stock Exchange (FMS, FMS/P).

    This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

    ***

    ]]>
    news-35 Tue, 04 May 2010 00:00:00 +0200 Fresenius Medical Care Reports Strong Start for 2010 and Confirms Outlook for Full Year /en/media/news/details/detail/News/fresenius-medical-care-reports-strong-start-for-2010-and-confirms-outlook-for-full-year/ 2010 1st-Quarter Summary: 
    Net revenue $2,882 million+13%
    Operating income (EBIT) $423 million+7%
    Net income attributable to Fresenius Medical Care AG & Co. KGaA $211 million+7%
    Earnings per share $0.70+6%

     

    Fresenius Medical Care AG & Co. KGaA (“the Company” or “FMC AG & Co. KGaA”), the world’s largest provider of dialysis products and services, today announced its results for the first quarter of 2010.4th-Quarter 2009:

    Revenue

    Net revenue revenue for the first quarter of 2010 increased by 13% to $2,882 million (+10% at constant currency) compared to the first quarter of 2009. Organic revenue growth worldwide was 8%. Dialysis services revenue grew by 13% to $2,171 million (+11% at constant currency) in the first quarter of 2010. Dialysis product revenue rose by 12% to $711 million (+5% at constant currency) in the same period.

    North America revenue increased by 10% to $1,960 million. Organic revenue growth was 8%. Dialysis services revenue grew by 12% to $1,760 million. Average revenue per treatment for U.S. clinics increased to $355 in the first quarter of 2010 compared to $338 for the corresponding quarter in 2009. This development was attributable principally to reimbursement increases and increased utilization of pharmaceuticals. Dialysis product revenue increased by 1% to $200 million, led by higher sales of hemodialysis disposables and pharmaceuticals. In peritoneal dialysis we are focused on the continued market launch of the Liberty Cycler, resulting in a 13% growth internally.

    International revenue increased by 17% to $922 million. Based on constant currency, revenue grew by 8%. Organic revenue growth was 6%. Dialysis services revenue was $411 million, an increase of 19% (+9% at constant currency). Dialysis product revenue increased by 16% to $511 million (+7% at constant currency), supported by higher sales of dialyzers and dialysis machines.

    Earnings

    Operating income (EBIT) for the first quarter of 2010 increased by 7% to $423 million compared to the first quarter of 2009. The operating margin decreased from 15.5% in the first quarter of 2009 to 14.7% in the first quarter of 2010.

    In North America, the operating margin increased from 15.3% in the first quarter of 2009 to 15.6% in the first quarter of 2010. The margin development was impacted favorably by an increase in revenue per treatment and effective cost-containment measures.

    In the International segment, the operating margin decreased from 18.7% in the first quarter of 2009 to 16.4% in the first quarter of 2010. The margin development was influenced negatively by the devaluation of the Venezuelan Bolivar.

    Net interest expense for the first quarter of 2010 was $67 million compared to $74 million in the comparable quarter of 2009, mainly due to lower short-term interest rates.

    Income tax expense was $128 million for the first quarter of 2010 compared to $111 million in the first quarter of 2009, reflecting effective tax rates of 35.8% and 34.3%, respectively.

    Net income attributable to FMC AG & Co. KGaA for the first quarter of 2010 was $211 million, an increase of 7% compared to the first quarter of 2009.

    Earnings per share (EPS) for the first quarter of 2010 rose by 6% to $0.70 per ordinary share. The weighted average number of shares outstanding for the first quarter of 2010 was approximately 299.6 million shares compared to 297.7 million shares for the first quarter of 2009. The increase in shares outstanding resulted from stock option exercises in the past 12 months.

    Cash Flow

    In the first quarter of 2010, the Company generated $349 million in cash from operations, an increase of 124% compared to the first quarter of 2009 and representing approximately 12% of revenue. The cash flow performance was influenced positively by improvements in working capital, increased earnings and lower income tax payments.

    A total of $99 million was spent for capital expenditures, net of disposals. Free cash flow before acquisitions was $250 million compared to $45 million in the first quarter of 2009. A total of $82 million in cash was used for acquisitions net of divestitures. Free cash flow after acquisitions and divestitures was $168 million compared to $9 million in the first quarter of the previous year.

    Please refer to the attachments for a complete overview of the first quarter of 2010 and the reconciliation of non-GAAP financial measures included in this release to the most comparable GAAP financial measures.

    Patients - Clinics - Treatments

    As of March 31, 2010, Fresenius Medical Care treated 198,774 patients worldwide, which represents a 6% increase compared to the previous year. North America provided dialysis treatments for 133,105 patients, an increase of 5%. Including 30 clinics managed by Fresenius Medical Care North America, the number of patients in North America was 134,847. The International segment served 65,669 patients, an increase of 9% over the prior year’s figure.

    As of March 31, 2010, the Company operated a total of 2,580 clinics worldwide, which represents a 5% increase compared to the previous year. The number of clinics is comprised of 1,788 clinics in North America (1,818 including managed clinics), and 792 clinics in the International segment, representing an increase of 4% and 8%, respectively.

    Fresenius Medical Care delivered approximately 7.51 million dialysis treatments worldwide during the first quarter of 2010. This represents an increase of 7% over the same quarter last year. North America accounted for 5.03 million treatments, an increase of 6%, and the International segment delivered 2.47 million treatments, an increase of 8%.

    Employees

    As of March 31, 2010, Fresenius Medical Care had 69,329 employees (full-time equivalents) worldwide compared to 67,988 employees at the end of 2009. This increase of 1,341 employees is due to overall growth in the Company’s business.

    Debt/EBITDA Ratio 

    The ratio of debt to Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) decreased from 2.64 at the end of the first quarter of 2009 to 2.30 at the end of the first quarter of 2010.

    Rating

    There have been no rating changes in the first quarter of 2010. On April 29, 2010, Standard & Poor’s Rating Services has raised the outlook from stable to positive. Standard & Poor’s continues to rate the Company’s corporate credit as ‘BB’. Moody's rates the Company’s corporate credit as ‘Ba1’ with a ‘stable’ outlook. Fitch rates the Company’s corporate credit as ‘BB’ with a ‘stable’ outlook. For further information on Fresenius Medical Care’s credit ratings, maturity profiles and credit instruments, please visit our website at www.fmc-ag.com / Investor Relations / Credit Relations.

    Issuance of Senior Notes

    At the start of 2010, Fresenius Medical Care issued €250 million aggregate principal amount of senior notes with a maturity in 2016. The proceeds from the issue were used to pay back short-term financial liabilities and for general business purposes.

    Outlook for 2010

    For the full year of 2010, the Company confirms its outlook.

    Revenue is expected to grow to more than $12 billion.

    Net income attributable to FMC AG & Co. KGaA is expected to be between $950 million and $980 million in 2010.

    The Company expects to spend $550 million to $650 million on capital expenditures and up to $400 million on acquisitions. The debt/EBITDA ratio is expected to be below 2.5 by the end of 2010.

    “We are pleased to report a strong start for 2010 and we confirm our outlook for the full year,” said Ben Lipps, chief executive officer of Fresenius Medical Care. “Strong organic growth is expected to continue and we also expect to strengthen our global presence through selective acquisitions, especially in the area of dialysis services. We had an excellent cash flow performance in the first quarter of 2010, supported by a continued impressive development in the days sales outstanding. Our most important goal for clinical and product research is to continue improving our patients’ quality of life with innovative products and treatment concepts. We remain confident that we are well-positioned to meet our challenges, in particular the global reimbursement structural changes, and we look forward to the opportunity to further improve quality outcomes under these payment models.”

    Video Webcast

    Fresenius Medical Care will hold a conference call to discuss the results of the first quarter of 2010 on Tuesday, May 4, 2010, at 3:30 p.m. CEDT / 9:30 a.m. EDT. The Company invites investors to view the live webcast of the call at the Company’s website www.fmc-ag.com in the “Investor Relations” section. A replay will be available shortly after the call.

    Click here for a full version of the Investor News in PDF format.

    ***


    Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 1,890,000 individuals worldwide. Through its network of 2,580 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to 198,774 patients around the globe. Fresenius Medical Care also is the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME, FME3) and the New York Stock Exchange (FMS, FMS/P).

    This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

    ***

    ]]>
    news-40 Wed, 24 Feb 2010 00:00:00 +0100 Fresenius Medical Care Reports Excellent 4th-Quarter and Full-Year 2009 Results; Provides strong outlook for 2010 /en/media/news/details/detail/News/fresenius-medical-care-reports-excellent-4th-quarter-and-full-year-2009-results-provides-strong-outlook-for-2010/ 2009 Full-Year Summary
    Net revenue $11,247 million+6%
    Operating income (EBIT) $1,756 million+5%
    Net income attributable to Fresenius Medical Care AG & Co. KGaA $891 million+9%
    Earnings per share $2.99+9%
    Dividend Proposal Ordinary share 0.61+5%
    Dividend Proposal Preference share0.63+5%

     

    2009 4th-Quarter Summary

    Net revenue$3,035 million+12%
    Operating income (EBIT) $491 million+13%
    Net income attributable to Fresenius Medical Care AG & Co. KGaA $274 million+15%
    Earnings per share $0.82+15%

     

    Fresenius Medical Care AG & Co. KGaA (“the Company” or “FMC AG & Co. KGaA”), the world’s largest provider of dialysis products and services, today announced its results for the fourth quarter and full year of 2009.

    4th-Quarter 2009

    Revenue

    Net revenue revenue for the fourth quarter of 2009 increased by 12% to $3,035 million (8% at constant currency) compared to the fourth quarter of 2008. Organic revenue growth worldwide was 8%. Dialysis Services revenue grew by 12% to $2,226 million (11% at constant currency) in the fourth quarter of 2009. Dialysis Product revenue increased by 10% to $809 million (an increase of 3% at constant currency) in the same period.

    North America revenue increased by 9% to $2,012 million. Organic revenue growth was 9%. Dialysis Services revenue grew by 10% to $1,799 million. Average revenue per treatment for U.S. clinics increased to $357 in the fourth quarter of 2009 compared to $335 for the corresponding quarter in 2008 and $348 for the third quarter of 2009. This development was attributable principally to reimbursement increases and increased utilization of pharmaceuticals. Dialysis Product revenue decreased by 3% to $213 million as a result of decreased sales of our phosphate-binding drug PhosLo®, partially offset by sales of our intravenous iron products, which increased by 14%, as well as increased sales of dialyzers, solutions and concentrates.

    International revenue increased by 18% to $1,023 million, compared to the fourth quarter of 2008. Based on constant currency, revenue grew by 8%. Organic revenue growth was 7%. Dialysis Services revenue was $427 million, an increase of 22% (+12% at constant currency). Dialysis Product revenue increased by 15% to $596 million (+5% at constant currency), led by sales of products for acute care treatments, sales of dialyzers, bloodlines and pharmaceuticals.

    Earnings

    Operating income (EBIT) for the fourth quarter of 2009 increased by 13% to $491 million compared to the fourth quarter of 2008. The operating margin increased from 15.9% in the fourth quarter of 2008 to 16.2% in the fourth quarter of 2009.

    In North America, the operating margin increased from 16.7% in the fourth quarter of 2008 to 17.7% in the fourth quarter of 2009. The margin development was impacted favorably by an increase in revenue per treatment and strong cost controls. The revenue per treatment improved mainly due to increased commercial rates, an increase in the utilization of pharmaceuticals and favorable development of the payor mix. The cost per treatment was impacted favorably by a strong cost management and a decrease in bad-debt expenses due to excellent cash collections on receivables. This was offset partially by higher costs for pharmaceuticals, mainly related to utilization, as well as the impact of the launch of a generic version of PhosLo® in the U.S. market and increased depreciation expense.

    In the International segment, the operating margin decreased from 17.7% to 17.6% due to higher bad-debt and R&D expenses, partially offset by more favorable foreign exchange rate effects, lower production costs resulting from lower prices for raw material and energy, as well as economies of scale.

    Net interest expense for the fourth quarter of 2009 was $75 million compared to $85 million in the comparable quarter of 2008, mainly due to lower short-term interest rates.

    Income tax expense was $145 million for the fourth quarter of 2009 compared to $120 million in the fourth quarter of 2008, reflecting effective tax rates of 34.9% and 34.3%, respectively.

    Net income attributable to FMC AG & Co. KGaA for the fourth quarter of 2009 was $247 million, an increase of 15% compared to the fourth quarter of 2008.

    Earnings per share (EPS) for the fourth quarter of 2009 rose by 15% to $0.82 per ordinary share. The weighted average number of shares outstanding for the fourth quarter of 2009 was approximately 299 million shares compared to 297.6 million shares for the fourth quarter of 2008. The increase in shares outstanding resulted from stock option exercises in the past 12 months.

    Cash Flow

    In the fourth quarter of 2009, the Company generated $458 million in cash from operations, an increase of 52% compared to the fourth quarter of 2008 and representing approximately 15% of revenue. The cash flow performance was influenced positively by the favorable development of the Days Sales Outstanding and increased earningsding.

    A total of $173 million was spent for capital expenditures, net of disposals. Free Cash Flow before acquisitions was $285 million compared to $120 million in the fourth quarter of 2008. A total of $79 million in cash was used for acquisitions net of divestitures. Free Cash Flow after acquisitions and divestitures was $206 million compared to $32 million in the fourth quarter of the previous year.

    Full Year 2009

    Revenue and Earnings

    Net revenue was $11,247 million for the full year 2009, an increase of 6% compared to 2008. At constant currency, net revenue rose 9%. Organic growth was 8% in 2009.

    Operating income (EBIT) increased by 5% to $1,756 million in 2009. The operating margin for 2009 was 15.6% compared to 15.8% for 2008.

    Net interest expense for the full year 2009 was $300 million compared to $336 million in 2008, mainly due to lower short-term interest rates.

    Income tax expense was $491 million for the full year 2009 compared to $476 million in 2008, reflecting effective tax rates of 33.7% and 35.6%, respectively. Tax expense was impacted positively by increased non-taxable non-controlling interest in North America.

    For the full year 2009, net income attributable to FMC AG & Co. KGaA was $891 million, up 9% from 2008.

    Earnings per ordinary share rose by 9% to $2.99 in 2009. The weighted average number of shares outstanding during 2009 was approximately 298.3 million.

    Cash Flow

    Cash from operations during 2009 was $1,339 million compared to $1,016 million for 2008, representing approximately 11.9% of revenue. The cash flow generation benefited from increased earnings and the favorable development of the Days Sales Outstanding.

    A total of $562 million was spent for capital expenditures, net of disposals. Free Cash Flow before acquisitions for 2009 was $777 million compared to $343 million in 2008. A total of $136 million in cash was used for acquisitions net of divestitures. Free Cash Flow after acquisitions and divestitures was $641 million compared to $125 million in 2008.

    Please refer to the attachments for a complete overview of the fourth quarter and the full year of 2009 and the reconciliation of non-GAAP financial measures included in this release to the most comparable GAAP financial measures.

    Patients - Clinics - Treatments

    As of Dec. 31, 2009, Fresenius Medical Care treated 195,651 patients worldwide, which represents a 6% increase compared to the previous year. North America provided dialysis treatments for 132,262 patients, an increase of 5%. Including 30 clinics managed by Fresenius Medical Care North America, the number of patients in North America was 133,969. The International segment served 63,389 patients, an increase of 9% over the prior year.

    As of Dec. 31, 2009, the Company operated a total of 2,553 clinics worldwide. This is comprised of 1,784 clinics in North America (1,814 including managed clinics), an increase of 6%, and 769 clinics in the International segment, an increase of 10%.

    Fresenius Medical Care delivered approximately 29.43 million dialysis treatments worldwide during 2009. This represents an increase of 6% year over year. North America accounted for 19.87 million treatments, an increase of 4%, and the International segment delivered 9.56 million treatments, an increase of 10% over the previous year.

    Employees

    As of Dec. 31, 2009, Fresenius Medical Care had 67,988 employees (full-time equivalents) worldwide compared to 64,666 employees at the end of 2008. This increase of 3,322 employees is due to the overall growth in the Company’s business.

    Dividend

    The Company will continue to follow an earnings-driven dividend policy. For the 13th consecutive year, shareholders can expect to receive an increased annual dividend for the fiscal year 2009. At the Annual General Meeting to be held on May 11, 2010, shareholders will be asked to approve a dividend of €0.61 per ordinary share, an increase of 5% from 2008 (€0.58).

    Debt/EBITDA Ratio

    The ratio of debt to Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) decreased from 2.69 at the end of 2008 to 2.46 at the end of 2009.

    Rating

    There have been no rating changes in the fourth quarter 2009, Standard & Poor’s Rating Services continued to rate the Company’s corporate credit as ‘BB’ with a ‘stable’ outlook. Moody's also affirmed its rating of the Company’s corporate credit as ‘Ba1’ with a ‘stable’ outlook. Fitch rates the Company’s corporate credit as ‘BB’ with a ‘stable’ outlook. For further information on Fresenius Medical Care’s credit ratings, maturity profiles and credit instruments, please visit our website at www.fmc-ag.com / Investor Relations / Credit Relations.

    Issuance of Senior Notes

    At the beginning of the first quarter of 2010 Fresenius Medical Care issued senior notes due 2016 in the amount of €250 million. The coupon is 5.5%. With a price at issuance of 98.6636% the yield to maturity at issuance was 5.75%. Proceeds were used to repay short-term indebtedness and for general corporate purposes. The senior notes are guaranteed on a senior basis jointly and severally by the Company, Fresenius Medical Care Holdings, Inc. and Fresenius Medical Care Deutschland GmbH.

    Fresenius Medical Care Announces Management Board Changes

    In December 2009, Fresenius Medical Care announced a transition to a new management board structure drawing entirely on internal management strength. The contract of Dr. Ben Lipps as chairman has been extended until December 31, 2012 and Rice Powell has been appointed Deputy Chairman of the Fresenius Medical Care Management Board. The Company has also appointed Mike Brosnan as Chief Financial Officer. Kent Wanzek was named to the new Fresenius Medical Care Management Board position for Global Manufacturing Operations to provide stronger manufacturing coordination on a global basis.

    Outlook for 2010

    For the full year of 2010, the Company expects to achieve revenue of more than $12 billion.

    Net income attributable to FMC AG & Co. KGaA is expected to be between $950 and $980 million in 2010.

    The Company expects to spend $550 to $650 million on capital expenditures and up to $400 million on acquisitions. The debt/EBITDA ratio is expected to be below 2.5 by the end of 2010.

    Ben Lipps, chief executive officer of Fresenius Medical Care, said: “We are very pleased to report excellent financial results for the fourth quarter and full year of 2009. With this performance, we achieved the top end of our earnings guidance for 2009. Cash flow from operations was very strong and clearly ahead of our expectations. In 2010, we expect to face similar challenges as we did in 2009 but we continue with confidence to execute our strategic plan while maintaining vigilance as to local health care trends. We remain committed to providing the best quality of care to maximize patients overall health and well-being. Our early stage experience with a comprehensive payment demonstration concept, online Hemofiltration and nocturnal dialysis are particularly encouraging in that they show a positive effect on total health care costs while improving patient care outcomes.”

    Video Webcast

    Fresenius Medical Care will hold an analyst meeting at its headquarters in Bad Homburg, Germany, to discuss the results of the fourth quarter and the full year of 2009 on Wednesday, Feb. 24, 2010, at 3:15 pm CET / 9:15 am EST. The Company invites investors to view the live webcast of the meeting at the Company’s website www.fmc-ag.com in the “Investor Relations” section. A replay will be available shortly after the meeting

    Click here for a full version of the Press Release in PDF format.

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    Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 1,890,000 individuals worldwide. Through its network of 2,553 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to 195,651 patients around the globe. Fresenius Medical Care also is the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME, FME3) and the New York Stock Exchange (FMS, FMS/P).

    For more information about Fresenius Medical Care visit the Company’s website at www.fmc-ag.com.

    This release contains forward-looking statements that are subject to various risks and uncertainties. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. These and other risks and uncertainties are detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co. KGaA does not undertake any responsibility to update the forward-looking statements in this release.

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