Fresenius 3Q net income up 14 pct to euro128 Million

By GEORGE FREY

posted: 23 DAYS 12 HOURS AGO

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FRANKFURT -German medical company Fresenius SE said Tuesday its net income for the third quarter rose 14 percent, partly on better sales.

Fresenius, based in Bad Homburg, said net income in the July-September period rose to euro128 million ($190 billion) from euro112 million in the third quarter of 2008.

Revenue for the third quarter rose to euro3.5 billion from euro3 billion in the third quarter of 2008.

The company also confirmed its "positive" outlook for 2009. It said it expects group sales to grow by more than 10 percent in constant currency terms, organic growth to be in a 6 to 8 percent range and adjusted net income to increase by approximately 10 percent.

Fresenius provides products and services for hospital and outpatient care and specializes in dialysis treatments.

Over the first nine months of the year, Fresenius said net income rose around 14 percent to euro368 million from euro324 million in the same period a year ago, while sales increased 19 percent to euro10.4 billion from euro9 billion.

The main Fresenius Medical Care division, which is a separately stock market listed company, but part of Fresenius SE, provides kidney-specialized products and services. The division saw revenue rise 4 percent in the first nine months of the year to euro8.2 billion from euro7.9 billion, while net income during the period rose 7 percent to euro645 million.

The Fresenius Kabi division which makes products including infusion therapies and intravenous drugs saw revenue rise 31 percent to euro2.3 billion from euro1.7 billion. However, net income during the period fell 9 percent to euro136 million, partly because of currency rate fluctuations.

The Helios division — one of the largest hospital operators in Germany — saw revenue increase 13 percent to euro1.8 billion from euro1.6 billion. Net income during the January-September period rose 39 percent to euro82 million.

The Vamed division which offers engineering and services for hospitals saw revenue rise 36 percent to euro393 million from euro290 million in the first nine months of 2008. Net income however fell 7 percent to euro13 million because of lower investment income as a result of lower interest rates.

Jack Scannell, an analyst at Bernstein Research, said the Medical Care division performed better than expected and has a euro40 target price on the separately listed company. However, he noted that a number of risks remain, including how U.S. government health care legislation unfolds.

Shares of Fresenius SE were 1.8 percent higher at euro34.15, while shares of Fresenius Medical Care were 1.6 percent higher at euro33.26 in Frankfurt morning trading.

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On the Net:

http://www.fresenius.com

2009-11-03 04:19:25