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DGAP-News: Fresenius Medical Care AG & Co. KGaA: Reports Strong Third Quarter and Nine Months Results; confirms Outlook for 2011 (deutsch)

Veröffentlicht am 02.11.2011, 07:07
Aktualisiert 02.11.2011, 07:08
Fresenius Medical Care AG & Co. KGaA: Reports Strong Third Quarter and Nine Months Results; confirms Outlook for 2011

DGAP-News: Fresenius Medical Care AG & Co. KGaA / Key word(s): Quarter

Results

Fresenius Medical Care AG & Co. KGaA: Reports Strong Third Quarter and

Nine Months Results; confirms Outlook for 2011

02.11.2011 / 07:07

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Contact: Fresenius Medical Care AG & Co. KGaA

Oliver Maier Else-Kröner-Str.1

Phone: + 49 6172 609 2601 61352 Bad Homburg

Fax: + 49 6172 609 2301 Germany

www.fmc-ag.com

North America:

Terry L. Morris

Phone: + 1 800 948 2538

Fax: + 1 615 345 5605

E-mail: ir@fmc-ag.com November 2, 2011

Investor News

Fresenius Medical Care Reports Strong Third Quarter and Nine Months

Results; confirms Outlook for 2011

3rd Quarter 2011 Summary:

^

Net revenue $3,242 +6%

million

Operating income (EBIT) $534 million +8%

Net income attributable to Fresenius Medical Care $279 million +13%

AG & Co. KGaA

Earnings per share $0.92 +12%

°

Nine Months 2011 Summary:

^

Net revenue $9,473 +7%

million

Operating income (EBIT) $1,488 +7%

million

Net income attributable to Fresenius Medical Care $761 million +8%

AG & Co. KGaA

Earnings per share $2.51 +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 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(R). 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 of 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 nine months 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 EUR-denominated floating

rate senior notes in the principal amount of EUR100 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

EUR-denominated senior unsecured notes in the principal amounts of $400

million and EUR400 million, respectively, both due 2018. The coupon for the

$ senior notes is 6.5%, and the coupon for the EUR 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.













End of Corporate News

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02.11.2011 Dissemination of a Corporate News, transmitted by DGAP - a

company of EquityStory AG.

The issuer is solely responsible for the content of this announcement.

DGAP's Distribution Services include Regulatory Announcements,

Financial/Corporate News and Press Releases.

Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: English

Company: Fresenius Medical Care AG & Co. KGaA

Else-Kröner-Straße 1

61352 Bad Homburg

Germany

Phone: +49 (0) 6172- 609 2525

Fax: +49 (0) 6172- 609 2301

E-mail: ir@fmc-ag.com

Internet: www.fmc-ag.de

ISIN: DE0005785802, DE0005785836,

WKN: 578580, 578583

Listed: Regulierter Markt in Frankfurt (Prime Standard);

Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,

München, Stuttgart; Terminbörse EUREX; NYSE





End of News DGAP News-Service

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144331 02.11.2011

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