By Dan Michaels
FRANKFURT--German health care group Fresenius SE (FRE.XE)
Thursday reported higher net profit in the second quarter and
raised its sales outlook despite currency pressures and slow growth
in China
The company posted second-quarter group net profit of 286
million euros ($383.2 million), an 18% increase compared with a
year earlier and beating analysts' expectations of EUR265
million.
Group sales for the second quarter rose 8% on the year to
EUR5.52 billion, and second-quarter earnings before interest, taxes
depreciation and amortization rose 7% on the year, to EUR1.01
billion.
Revenue from its hospital division, Helios, rose 52% to EUR1.29
billion, benefiting from the company's integration of hospital
chain Rhoen-Klinikum, which Fresenius acquired last year.
Its Kabi business unit, which sells intravenous drugs and has
faced increased competition, saw flat second-quarter of sales of
EUR1.25 billion and falling net income, down 10% to EUR111
million.
"The integration of the newly acquired hospitals is fully on
track and we are pleased with their strong financial performance.
Kabi saw growing business momentum in all key markets," said
Chairman Ulf Mark Schneider.
The company offered no new information about a joint venture
with two partner firms in Russia, Sistema JSFC and Zenitco Finance
Management LLC, and the Fresenius Kabi division in Russia.
The joint venture was announced in April and criticized by many
German politicians, who said it sent the wrong signal after the
U.S. and European Union launched their first round of sanctions
against Russia.
Fresenius Medical Care, a separately listed dialysis provider
that is 30% own by Fresenius SE, posted a net profit decline of
5.7% on the year to $281 million. It is struggling in the U.S. with
flat Medicare rates and slow growth in commercial medical
rates.
Its second-quarter sales rose 6.2% on the year to $3.83
billion.
The second-quarter figures still beat analysts' expectations for
Fresenius Medical Care. A Dow Jones poll of analysts forecast net
profits of $248 million and second-quarter sales of $3.75
billion.
Write to Dan Michaels at dan.michaels@wsj.com
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