Fresenius Medical Care Q2 EBIT Surges; Confirms 2018 Outlook - Quick Facts

(RTTNews) - Fresenius Medical Care AG & Co. KGaA (FMS) reported that its operating income or EBIT for the second quarter surged to 1.40 billion euros from 583 million euros in the year-ago period. The strongest contributor to EBIT was the gain related to the divestitures of Care Coordination activities.

Adjusting for the gain as well as the prior year impact from the VA Agreement, EBIT grew by 2 percent at constant currency, but declined 4 percent at current rates, with an EBIT margin of 13.5 percent.

Second-quarter net income attributable to shareholders grew to 994 million euros from 269 million euros in the year-ago period. Basic earnings per share amounted to 3.24 euros, up from 0.88 euros in the year-ago period.

On an adjusted basis, earnings per share increased 6 percent to 0.89 euros at constant currency, but was flat with the prior-year quarter at current rates.

Revenue in the second quarter declined 6 percent to 4.21 billion euros from 4.47 billion euros, but rose 2 percent at constant currency.

Adjusting the second quarter of 2017 for the impact from the IFRS 15 implementation, revenue in latest quarter rose 5 percent at constant currency.

Looking ahead to fiscal 2018, Fresenius Medical Care affirmed its outlook for revenue growth between 5 percent and 7 percent at constant currency.

Full-year net income on a comparable basis is expected to increase by 13 percent to 15 percent at constant currency, and on an adjusted basis, to increase by 7 percent to 9 percent at constant currency.

The outlook excludes effects from major transactions such as the planned acquisition of NxStage Medical and the gain (loss) related to the divestiture of Care Coordination activities.