DGAP-News: Fresenius Medical Care AG & Co. KGaA reports third quarter 2015 results and confirms guidance for full year 2015

Fresenius Medical Care AG & Co. KGaA reports third quarter 2015 results and confirms guidance for full year 2015

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

9-Monatszahlen

Fresenius Medical Care AG & Co. KGaA reports third quarter 2015

results and confirms guidance for full year 2015

29.10.2015 / 07:05

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October 29, 2015

INVESTOR

NEWS

Fresenius Medical Care reports

third quarter 2015 results and confirms guidance for full year 2015

- 2015 outlook confirmed

- Strong organic growth and very positive earnings development in North

America

- Strong growth dynamic in Care Coordination activities

- International performance furthermore impacted by currency fluctuations

- EBIT and net income influenced by one-time items

Third quarter 2015 key figures:

Net revenue $4,231 million +3%

Operating income (EBIT) $614 million +4%

Operating income (EBIT) excluding one-time items2 $632 million +5%

Net income1 $262 million -3%

Net income excluding one-time items1,2 $284 million +2%

Basic earnings per share $0.86 -4%

First nine months 2015 key figures:

Net revenue $12,390 million +8%

Operating income (EBIT) $1,665 million +5%

Operating income (EBIT) excluding one-time items2 $1,683 million +5%

Net income1 $713 million 0%

Net income excluding one-time items1,2 $735 million +3%

Basic earnings per share $2.34 0%

Rice Powell, chief executive officer of Fresenius Medical Care stated:

"With the dynamic growth in our Care Coordination business and our

continued strong operating performance in our core businesses, we are well

positioned for future success. We are very satisfied with our

accomplishments in the third quarter despite the unfavorable currency

impacts. We confirm our outlook for the full year 2015 and remain focused

to further strengthen our business to deliver high quality care for our

patients."

Third quarter 2015

Revenue

Net revenue for the third quarter of 2015 increased by 3% to $4,231 million

(+9% at constant currency) as compared to the third quarter of 2014.

Organic revenue growth worldwide was 6%. Net Health Care revenue grew by 6%

to $3,402 million (+10% at constant currency). After two very strong

quarters in the product business, we are closer to a normalized organic

revenue level. Dialysis product revenue was down by 9% to $829 million as

compared to the third quarter of 2014 mainly due to a negative currency

impact in the three International segments. On a constant currency basis,

the dialysis product revenue increased by 2%.

North America revenue for the third quarter of 2015 increased by 11% to

$3,013 million. Organic revenue growth was 6%. Net Health Care revenue grew

by 12% to $2,794 million with a same market treatment growth of 5%. Net

Dialysis Care revenue increased by 6% to $2,314 million and Care

Coordination revenue increased by 56% to $480 million (organic growth of

17%). Dialysis product revenue increased by 3% to $219 million as compared

to the third quarter of 2014.

International revenue decreased by 12% to $1,213 million (an increase of 5%

on a constant currency basis). Organic revenue growth was 6%. While the

underlying organic revenue developed positively, the currency translation

resulted in a negative impact. Net Health Care revenue decreased by 13% to

$608 million (+6% at constant currency). Dialysis product revenue decreased

by 12% to $605 million (+3% at constant currency).

International segments:

Europe, Middle East and Africa (EMEA) revenue decreased by 16% to $659

million (+2% at constant currency). Organic revenue growth was 2%. Net

Health Care revenue decreased by 16% to $309 million (+3% at constant

currency). Dialysis product revenue decreased by 16% to $350 million

(stable at constant currency).

Asia-Pacific revenue decreased by 2% to $378 million (+9% at constant

currency). Organic revenue growth was 10%. Net Health Care revenue

decreased by 9% to $168 million (+4% at constant currency). Dialysis

product revenue increased by 3% to $210 million (+13% at constant

currency).

Latin America revenue decreased by 18% to $176 million (+7% at constant

currency). Organic revenue growth was 13%. Net Health Care revenue

decreased by 12% to $131 million (+12% at constant currency). Dialysis

product revenue decreased by 33% to $44 million (a decrease of 6% at

constant currency). The regional performance was impacted by the

divestiture of our dialysis service business in Venezuela.

Earnings

Operating income (EBIT) increased by 4% from $590 million in the third

quarter of 2014 to $614 million in the third quarter of 2015. Operating

income, excluding one-time items, increased by 5% from $601 million to $632

million; adjusted for: a negative impact ($26 million) from the divestiture

of the dialysis service business in Venezuela, a negative impact due to the

closing of a manufacturing plant in the third quarter of 2014 ($11 million)

and a positive impact of $8 million from the sale of our European marketing

rights for certain renal pharmaceuticals to our joint venture Vifor

Fresenius Medical Care Renal Pharma. The sale of remaining marketing rights

is being recognized as they are transferred at the country level.

Therefore, we anticipate additional gains will be realized in the fourth

quarter of 2015.

Operating income for North America for the third quarter of 2015 was $515

million, an increase of 25% as compared to the third quarter of 2014.

International segments:

Operating income for EMEA for the third quarter of 2015 was $130 million, a

decrease of 14% as compared to the third quarter of 2014. Operating income,

excluding one-time items, was $122 million. Operating income for

Asia-Pacific for the third quarter of 2015 was $68 million, a decrease of

25% as compared to the third quarter of 2014. Operating income for Latin

America for the third quarter of 2015 was ($8 million). Operating income,

excluding one-time items, was $18 million.

Net interest expense for the third quarter of 2015 was with $100 million at

the same level as compared to the third quarter of 2014.

Income tax expense was $168 million for the third quarter of 2015, which

translates into an effective tax rate of 32.8%. This compares to income tax

expense of $162 million and a tax rate of 32.9% for the third quarter of

2014.

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

KGaA for the third quarter of 2015 was $262 million, a decrease of 3%

compared to $271 million for the third quarter of 2014. Net income

attributable to noncontrolling interest increased to $84 million ($58

million in the third quarter of 2014) due to the strong earnings

development in North America. Net income attributable to shareholders of

Fresenius Medical Care AG & Co. KGaA for the third quarter of 2015,

excluding one-time items, increased by 2% to $284 million.

Basic earnings per share (EPS) for the third quarter of 2015 was $0.86, a

decrease of 4% compared to the corresponding number for the third quarter

of 2014. The weighted average number of shares outstanding for the third

quarter of 2015 was approximately 304.7 million shares, compared to

approximately 302.7 million shares for the third quarter of 2014. The

increase in shares outstanding resulted from stock option exercises during

the last twelve months.

Cash flow

In the third quarter of 2015, the company generated $579 million,

representing roughly 14% of revenue, in net cash provided by operating

activities, compared to the corresponding figure of last year of $712

million.

A total of $224 million was spent for capital expenditures, net of

disposals. Free cash flow was $355 million compared to $488 million in the

third quarter of 2014.

A total of $57 million in cash was spent for acquisitions and investments,

net of divestitures. Free cash flow after investing activities was $298

million as compared to ($125) million in the third quarter of 2014.

First nine months 2015

Revenue and earnings

Net revenue for the first nine months of 2015 increased by 8% to $12,390

million (+13% at constant currency) as compared to the first nine months of

2014. Organic revenue growth worldwide was 7%.

Operating income (EBIT) for the first nine months of 2015 was $1,665

million as compared to $1,591 million in the first nine months of 2014.

This represents an increase of 5%. Operating income, excluding one-time

items, increased by 5% to $1,683 million.

Net interest expense for the first nine months of 2015 was $304 million as

compared to $294 million in the first nine months of 2014.

Income tax expense for the first nine months of 2015 was $441 million,

which translates into an effective tax rate of 32.4%. This compares to

income tax expense of $440 million and a tax rate of 33.9% for the first

nine months of 2014. For the full year, the company expects the tax rate to

be on the lower end of its guidance range of 33 to 34%.

For the first nine months of 2015, net income attributable to shareholders

of Fresenius Medical Care AG & Co. KGaA was stable at $713 million ($710

million in the same period in the previous year). Net income attributable

to shareholders of Fresenius Medical Care AG & Co. KGaA excluding one-time

items for the first nine months of 2015 increased by 3% to $735 million.

In the first nine months of 2015, basic earnings per share (EPS) remained

stable with $2.34 as compared to the corresponding number for the first

nine months of 2014 ($2.35). The weighted average number of shares

outstanding during the first nine months of 2015 was approximately 304.2

million shares.

Cash flow

In the first nine months of 2015, the company generated $1,412 million in

net cash provided by operating activities, representing 11.4% of revenue,

as compared to $1,274 million for the same period in 2014.

A total of $636 million was spent for capital expenditures, net of

disposals. Free cash flow for the first nine months of 2015 was $776

million as compared to $635 million in the first nine months of 2014.

A total of $124 million in cash was spent for acquisitions and investments,

net of divestitures. Free cash flow after investing activities was $652

million as compared to ($410) million in the first nine months of 2014.

Employees

As of September 30, 2015, Fresenius Medical Care had 102,591 employees

(full-time equivalents) worldwide, compared to 97,327 employees at the end

of September 2014. This increase was mainly attributable to acquisitions as

well as to our continued organic growth.

Balance sheet structure

The company's total assets were stable at $25,414 million (Dec. 31, 2014:

$25,447 million). Current assets were comparable at $6,760 million (Dec.

31, 2014: $6,725 million). Non-current assets were slightly down at $18,654

million (Dec. 31, 2014: $18,722 million). Total equity increased by 2% to

$10,243 million (Dec. 31, 2014: $10,028 million). The equity ratio was 40%

as compared to 39% at the end of 2014. Total debt was $9,093 million (Dec.

31, 2014: $9,532 million). As of September 30, 2015, the debt/EBITDA ratio

was 2.9 (Dec. 31, 2014: 3.1).

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

the third quarter and first nine months of 2015 and the reconciliation of

non-GAAP financial measures included in this release to the most comparable

GAAP financial measures.

Outlook confirmed

For the 2015 outlook 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 by 0-5% in 2015.

The company expects to spend around $1.0 billion on capital expenditures

and around $300 million on acquisitions in 2015. The debt/EBITDA ratio is

expected to be around 3.0 by the end of 2015.

In addition we confirm our 2016 projections. We expect revenue to increase

around 7-10% (at constant currency) and net income attributable to

shareholders of Fresenius Medical Care AG & Co. KGaA to grow by 15-20%.

We expect the progress in our business to be consistent with our long-term

targets.

Conference call

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

of the third quarter 2015 on Thursday, October 29, 2015 at 3.30 p.m. CET/

10.30 a.m. EDT. The company invites investors to follow the live webcast of

the call at the company's website www.freseniusmedicalcare.com in the

"Investors/Events & Presentations" section. A replay will be available

shortly after the call.

Fresenius Medical Care is the world's largest provider of products and

services for individuals with renal diseases of which more than 2.6 million

patients worldwide regularly undergo dialysis treatment. Through its

network of 3,402 dialysis clinics, Fresenius Medical Care provides dialysis

treatments for 290,250 patients around the globe. Fresenius Medical Care is

also the leading provider of dialysis products such as dialysis machines or

dialyzers. Along with the core business, the company focuses on expanding

the range of additional medical services in the field of care coordination.

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.

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29.10.2015 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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406615 29.10.2015