Fresenius 4Q Net Profit Increases on Hospital Segment
By Sonia Amaral Rohter
Fresenius SE (FRE.XE) said late Monday that its fourth-quarter net profit increased, due in part to a strong contribution from its hospital-operating segment.
The German health-care company said that net profit was 511 million euros ($629.3 million) for the quarter, compared with EUR442 million a year earlier. Sales rose 11% to EUR8.7 billion, it said.
In the fourth quarter, sales at Fresenius Helios--which operates private hospitals--increased 54% to EUR2.23 billion, the company said. Fresenius acquired the Spanish hospital operator Quironsalud at the start of 2017.
In 2018, Fresenius expects sales growth of 5% to 8% and net income growth of 6% to 9%, both at constant currency. Excluding its expenditure to further develop its biosimilars business, the company expects net income to grow by around 10% to 13% at constant currency. The 2018 targets exclude the pending acquisitions of Akorn Inc. (AKRX) and NxStage Medical Inc. (NXTM), the company said.
Fresenius confirmed its 2020 mid-term growth targets, saying that group sales are expected to grow at a compounded annual growth rate, or CAGR, of 7.1% to 10.3%. The company said that group net income is expected to increase a CAGR of 8.3% to 12.6%.
Fresenius proposed a 2017 dividend of EUR0.75 a share, up 21% from 2016.
Fresenius Medical Care AG (FME.XE)--a provider of dialysis products and services which is owned by Fresenius--also reported fourth-quarter results, with net profit rising to EUR394 million from EUR363 million and revenue increasing 0.3% to EUR4.43 billion.
In 2018, Fresenius Medical Care expects revenue growth of around 8% and net income growth of 13% to 15%, both at constant currency. The targets don't include the effects from the acquisition of NxStage. The net income target includes recurring benefits from the U.S. tax reform of EUR140 million to EUR160 million, the company said.
Fresenius Medical Care proposed a 2017 dividend of EUR1.06 a share, up 10% from 2016.
"We managed an unusual number of severe natural disasters, have delivered on our financial targets, and again we are able to propose the highest dividend in our company's history," said Rice Powell, chief executive of Fresenius Medical Care.
Write to Sonia Amaral Rohter at email@example.com
(END) Dow Jones Newswires
February 27, 2018 02:23 ET (07:23 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.