DGAP-News: Fresenius Medical Care AG & Co. KGaA: Fresenius Medical Care reports fourth quarter and full year 2014 results

Fresenius Medical Care AG & Co. KGaA: Fresenius Medical Care reports fourth quarter and full year 2014 results

DGAP-News: Fresenius Medical Care AG & Co. KGaA / Schlagwort(e):

Jahresergebnis

Fresenius Medical Care AG & Co. KGaA: Fresenius Medical Care reports

fourth quarter and full year 2014 results

25.02.2015 / 07:42

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February 25, 2015

INVESTOR NEWS

Fresenius Medical Care reports

fourth quarter and full year 2014 results

- 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 income1 $335 million -4%

Basic earnings per ordinary share $1.11 -5%

Full year 2014 key figures:

Net revenue $15,832 million +8%

Operating income (EBIT) $2,255 million 0%

Net income1 $1,045 million -6%

Basic earnings per ordinary share $3.46 -5%

Dividend proposal:

Ordinary share EUR0.78 +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 EUR0.78 per share, an increase of 1% from

2013 (EUR0.77). 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.

Conference call

Fresenius Medical Care will hold a conference call to discuss the results

of the fourth quarter 2014 on Wednesday, February 25, 2015 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.freseniusmedicalcare.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 2.7 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.

For more information about Fresenius Medical Care, visit the company's

website at www.freseniusmedicalcare.com.

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.

CONTACT

Fresenius Medical Care AG & Co. KGaA

Investor Relations

61352 Bad Homburg v. d. H.

Germany

www.freseniusmedicalcare.com

Oliver Maier

Head of Investor Relations &

Corporate Communications

Tel. +49 6172 609 2601

Fax +49 6172 609 2301

email: ir@fmc-ag.com

Published by

Fresenius Medical Care AG & Co. KGaA

Investor Relations

Annual reports, interim reports and further

information on the company is also available on our website.

Please visit us at www.freseniusmedicalcare.com

For printed material, please contact Investor Relations.

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25.02.2015 Veröffentlichung einer Corporate News/Finanznachricht,

übermittelt durch DGAP - ein Service der EQS Group AG.

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Sprache: Deutsch

Unternehmen: Fresenius Medical Care AG & Co. KGaA

Else-Kröner-Straße 1

61352 Bad Homburg

Deutschland

Telefon: +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

Indizes: DAX

Börsen: Regulierter Markt in Frankfurt (Prime Standard);

Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,

München, Stuttgart; Terminbörse EUREX; NYSE

Ende der Mitteilung DGAP News-Service

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326611 25.02.2015