By Ulrike Dauer
FRANKFURT--German health-care group Fresenius SE & Co. KGaA
(FRE.XE) on Wednesday raised its net profit guidance for the full
year after earnings at its clinical technology provider Fresenius
Kabi in the U.S. significantly topped expectations in the first
three months.
"We expect continued momentum in sales and profit growth in the
coming quarters and raise our group earnings guidance for 2015,"
said Chief Executive Ulf Mark Schneider.
Fresenius now expects its 2015 net profit to rise between 13%
and 16% from the year-earlier figure of EUR1.086 billion ($1.19
billion). It previously guided for net profit growth of between 9%
and 12%. It confirmed, however, its sales target of a 7% to 10%
increase over the 2014 figure of EUR23.2 billion. All company
forecasts are in constant currency.
Group net profit rose 28% in the first quarter, boosted by
revenue gains in all four business units and a substantial tailwind
from the weak euro.
Fresenius generates some 40% of sales in each North America and
Europe. Due to the euro's depreciation against major currencies in
the first quarter, exports outside Europe became less expensive for
customers overseas and thus more competitive.
Net profit increased to EUR292 million from EUR228 million in
the first quarter of 2014, beating a EUR276 million forecast in a
Dow Jones Newswires poll.
Revenues were up 24% to EUR6.5 billion, outpacing the forecast
EUR6.33 billion.
The Fresenius Kabi business now expects sales to grow by 4% to
7% this year, against a previous forecast of 3% to 5% rise.
Earnings before interest and taxes at the unit is forecast to rise
11% to 14%, substantially more than the previous guidance of 4% to
6%.
Fresenius Kabi booked a 32% net profit increase and a 15% sales
rise in the first three months. It had been closely watched by
investors for a possible upward revision of the company
guidance.
Meanwhile, Fresenius' biggest unit, Fresenius Medical Care AG
& Co. KGaA (FMC), confirmed its full-year guidance after
revenue rose 11% in the first quarter and net profit was also
slightly higher.
FMC, the world's largest provider of dialysis products and
services, said revenue rose to $3.96 billion from $3.56 billion,
above the forecast $3.87 billion. FMC's quarterly net profit of
$210 million was 2% up from the same quarter a year earlier and
also topped the forecast $205.4 million. Net profit was dented by
negative currency translation effects due to U.S. dollar strength
and restructuring costs. FMC generates about two-thirds of its
revenue in North America and reports in U.S. dollars.
Fresenius has four business units -- Fresenius Medical Care,
Fresenius Kabi, hospital group Fresenius Helios and health-care
facilities manager Fresenius Vamed.
Fresenius shares rose some 4% in post-market trading following
the announcements; FMC shares were little changed.
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