DGAP-News: Fresenius Medical Care AG & Co. KGaA reports first quarter 2014 results and confirms guidance for full year 2014

Fresenius Medical Care AG & Co. KGaA reports first quarter 2014 results and confirms guidance for full year 2014

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

Sonstiges

Fresenius Medical Care AG & Co. KGaA reports first quarter 2014

results and confirms guidance for full year 2014

06.05.2014 / 07:38

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- First quarter performance in line with full year guidance

- North America influenced by sequestration and rebasing impact

- International influenced by currency and delayed product sales

- On track to achieve full year guidance

- Accelerated medical and quality initiatives

First quarter 2014 key figures:

Net revenue $3,564 million +3%

Operating income (EBIT) $445 million -10%

Net income1 $205 million -9%

Basic earnings per ordinary share $0.68 -7%

___________________________________________________________________________

1attributable to shareholders of Fresenius Medical Care AG & Co. KGaA

"We can look back on a first quarter that was in line with our guidance for

the full year," said Rice Powell, chief executive officer of Fresenius

Medical Care. "Based on our quarterly results, and on the continuous

efforts we are making to increase profitability, we are able to confirm our

full-year guidance. Moreover, by capitalizing on market opportunities in

our core dialysis business and expanding in business areas like care

coordination for dialysis, Fresenius Medical Care is well placed to meet

the company's ambitious long-term targets."

First quarter 2014

Revenue

Net revenue for the first quarter of 2014 increased by 3% to $3,564 million

(+4% at constant currency) compared to the first quarter of 2013. Organic

revenue growth worldwide was 3%. Dialysis services revenue grew by 4% to

$2,782 million (+5% at constant currency) and dialysis product revenue

decreased by 1% to $782 million (flat at constant currency) compared to the

first quarter of 2013.

North America revenue for the first quarter of 2014 increased by 5% to

$2,393 million. Organic revenue growth was 4%. Dialysis services revenue

grew by 5% to $2,201 million with a same store treatment growth of 3.3%.

Dialysis product revenue increased by 5% to $192 million.

International revenue decreased by 1% to $1,161 million (+4% at constant

currency). Organic revenue growth was 3%. Dialysis services revenue

increased by 1% to $581 million (+8% at constant currency). Dialysis

product revenue decreased by 2% to $580 million (-1% at constant currency).

Earnings

Operating income (EBIT) for the first quarter of 2014 decreased by 10% to

$445 million compared to $493 million in the first quarter of 2013.

Operating income for North America for the first quarter of 2014 decreased

by 8% to $336 million compared to $366 million in the first quarter of

2013. In the International segment, operating income for the first quarter

of 2014 decreased by 6% to $180 million compared to $192 million in the

first quarter of 2013.

Net interest expense for the first quarter of 2014 was $96 million,

compared to $104 million in the first quarter of 2013.

Net income attributable to shareholders of Fresenius Medical Care AG & Co.

KGaA for the first quarter of 2014 was $205 million, a decrease of 9%

compared to the corresponding number of $225 million for the first quarter

of 2013.

Income tax expense was $102 million for the first quarter of 2014 which

translates into an effective tax rate of 29.1%. This compares to income tax

expense of $129 million and a tax rate of 33.2% for the first quarter of

2013.

Basic earnings per ordinary share (EPS) for the first quarter of 2014 was

$0.68, a decrease of 7% compared to the corresponding number for the first

quarter of 2013. The weighted average number of shares outstanding for the

first quarter of 2014 was approximately 301.5 million shares, compared to

306.7 million shares for the first quarter of 2013. The decrease in shares

outstanding resulted from last year's share buy-back program, partially

offset by stock option exercises in the past twelve months.

Cash flow

In the first quarter of 2014, the company generated $112 million in net

cash provided by operating activities, a decrease of 64% compared to the

corresponding figure of last year and representing 3% of revenue.

A total of $197 million was spent for capital expenditures, net of

disposals. Free cash flow was -$85 million compared to $169 million in the

first quarter of 2013.

A total of $135 million in cash was spent for acquisitions and investments,

net of divestitures. Free cash flow after investing activities was -$220

million, compared to $98 million in the first quarter of 2013.

Employees

As of March 31, 2014, Fresenius Medical Care had 91,542 employees

(full-time equivalents) worldwide, compared to 86,855 employees at the end

of March 2013. This increase of more than 4,500 employees was attributable

to our continued organic growth as well as to acquisitions.

Balance sheet structure

The company's total assets were $23,423 million (Dec. 31, 2013: $23,120

million), an increase of 1%. Current assets increased by 3% to $6,497

million (Dec. 31, 2013: $6,287 million). Non-current assets were $16,926

million (Dec. 31, 2013: $16,833 million), an increase of 1%. Total equity

increased by 2% to $9,680 million (Dec. 31, 2013: $9,485 million). The

equity ratio was 41%, unchanged compared to the ratio at the end of 2013.

Total debt was $8,609 million (Dec. 31, 2013: $8,417 million). As of March

31, 2014, the debt/EBITDA ratio was 2.9 (Dec. 31, 2013: 2.8).

Please refer to the attachments for a complete overview of the results for

the first quarter 2014 and the reconciliation of non-GAAP financial

measures included in this release to the most comparable GAAP financial

measures.

Changes in management board

On March 12, 2014, the company announced the resignations of Prof. Emanuele

Gatti, and Dr. Rainer Runte, both effective March 31, 2014, from the

general partner's management board. Dr. Gatti's position on the management

board and duties relating to Europe, Middle East and Africa have been

assumed by Mr. Wehner, effective April 1, 2014, while Latin America region

management duties have been assumed by Mr. John Anderson who reports

directly to CEO Mr. Powell. Until such time as a permanent successor to Dr.

Runte is named, Mr. David Kembel, chief compliance officer for Fresenius

Medical Care North America, has assumed Dr. Runte's responsibilities for

Global Compliance on an interim basis and CEO Mr. Powell, as the chairman

of the management board, has assumed Dr. Runte's remaining

responsibilities, until the search for a General Counsel is complete.

Long-term revenue target

On April, 4 Fresenius Medical Care announced its long-term financial target

for 2020. Based on revenue of $14.6 billion in fiscal year 2013, the

company has set its ambitious revenue guidance for 2020 at $28 billion.

This represents a cumulative average growth rate of around 10% per annum

(CAGR) between 2015 and 2020 and a near doubling of revenue compared to

2013. Over the same period the company expects a high single digit increase

in net income and EPS.

Fresenius Medical Care's world-leading position in the dialysis industry

has been built on its vision and capabilities in developing innovations

that shape the future of treatment for patients. Fresenius Medical Care

will continue to develop innovative products focused on quality outcomes

for the patient while expanding the company's dialysis products and

services around the world. In addition to strong growth in the underlying

business of dialysis products and services, Fresenius Medical Care sees

significant potential in a business area it began developing some years ago

and now calls Care Coordination. Care Coordination is an extension of the

company's renal care for its patients and currently includes e.g. vascular

care, laboratory and pharmacy businesses. By further integrating those

services in the U.S. into the existing core business and thereby creating a

high-performance renal network including risk based models and by the

development of chronic care centers in the International segment, the

company expects a significant improvement of patient care outcomes.

Fresenius Medical Care plans to build this business segment and expects

revenue from Care Coordination to grow from 3% of total revenue in 2013 to

about 18% in 2020.

Outlook

The company expects revenue to be at around $15.2 billion in 2014,

translating into a growth rate of around 4%.

Net income attributable to shareholders of Fresenius Medical Care AG & Co.

KGaA is expected to be between $1.0 billion and $1.05 billion in 2014. The

company initiated a global efficiency program designed to enhance the

company's performance over a multi-year period. Potential cost savings

before income taxes of up to $60 million generated from this program are

not included in the outlook for 2014.

For 2014, the company expects to spend around $900 million on capital

expenditures and around $400 million on acquisitions. The debt/EBITDA ratio

is expected to be equal to or below 3.0 by the end of 2014.

Conference call

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

of the first quarter 2014 on Tuesday, May 6, 2014, at 3.30 p.m. CEDT/ 9.30

a.m. EDT. The company invites investors to follow 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.

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 2.5 million

individuals worldwide. Through its network of 3,263 dialysis clinics in

North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius

Medical Care provides dialysis treatments for 270,570 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.fmc-ag.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.

Relations.

CONTACT

Fresenius Medical Care AG & Co. KGaA

Investor Relations

61352 Bad Homburg v. d. H.

Germany

www.fmc-ag.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.fmc-ag.com

For printed material, please contact Investor Relations.

Ende der Corporate News

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06.05.2014 Veröffentlichung einer Corporate News/Finanznachricht,

übermittelt durch die DGAP - ein Unternehmen 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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