FMS Fresenius Medical Care AG

By Ulrike Dauer

FRANKFURT--German health care group Fresenius SE & Co. KGaA (FRE.XE) on Thursday said a good third quarter and continuing strong results at its Fresenius Kabi unit in North America allowed it to raise its net profit guidance for the third time this year.

Fresenius now expects net profit to be some 20% to 22% higher than the year-earlier figure of 1.086 billion euros ($1.20 billion). Under its last guidance raised in July--for the second time this year after April--it had forecast an 18% to 21% profit increase.

Fresenius also targets 2015 sales growth of 8% to 10% over the 2014 figure of EUR23.2 billion, unchanged from its previous guidance.

The Kabi unit, the group's clinical technology provider, also raised its guidance. It now forecasts an 8% rise in sales, at the upper end of its previous 6% to 8% guidance, and EBIT growth of 19% to 22%, up from the previously targeted 18% to 21% . All company forecasts are in constant currency.

In the quarter from July to September, net profit rose 31% to EUR367 million, helped by a tailwind from the positive foreign exchange translation effects of the weak euro, beating a forecast EUR348 million. Sales rose 16% to EUR6.94 billion from EUR5.98 billion in the same quarter a year ago, below the forecast EUR6.95 billion

As a result of the weakening of the euro against the U.S. dollar and other major currencies, group sales and profit benefited strongly after translating dollar-denominated sales into euros.

Fresenius has four business units--Fresenius Medical Care AG & Co. KGaA (FMS), the world's largest provider of dialysis products and services; Fresenius Kabi; hospital group Fresenius Helios; and health care facilities manager Fresenius Vamed. It generates some 40% of sales each in North America and in Europe.

Three of the four business operations contributed to the improvements. Fresenius Kabi booked a 42% rise in net profit and a 16% sales increase in the third quarter, following an already strong performance in the first two quarters, which had caused both lifts in the guidance.

Fresenius' biggest unit FMC confirmed its full-year guidance after revenue rose 3% in the quarter to $4.23 billion and net profit fell 3% to $262 million. For 2016, FMC also maintained the profit and revenue targets

Write to Ulrike Dauer at Ulrike.Dauer@wsj.com

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(END) Dow Jones Newswires

October 29, 2015 02:55 ET (06:55 GMT)

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