Fresenius today announced encouraging results in the non-ovarian cancer patient stratum of a phase II/III pivotal study on malignant ascites using the trifunctional antibody removab® (catumaxomab). After positive results in the treatment of patients with ascites from ovarian cancer (see Press Release of December 18, 2006 for ovarian stratum), the antibody again showed a clear advantage over a therapy with puncture alone. The median puncture-free survival period (primary endpoint) in the patient group treated with removab® was significantly longer compared to the control group and clinically relevant. The median puncture-free survival was 37 days in the removab® group versus 14 days in the control group (p< 0.0001).
In the subgroup of patients with ascites from gastric cancer (51 % of all non-ovarian cancer patients) the difference was even more marked with a median puncture-free survival of 44 days in the removab® group versus 15 days in the control group (p<0.0001). All other patients (10 % breast, 7 % pancreatic, 6 % colorectal cancer, 26 % others) had a median puncture-free survival of 30 days (removab®) versus 9 days in the control group (p<0.0003). On a pooled basis for both strata (ovarian and non-ovarian cancers) the median puncture-free survival was 46 days in the removab® group versus 11 days in the control group (p<0001).
Positive results were also achieved in key secondary endpoints. Of special importance was the length of time between treatment and first therapeutic puncture (median time to the first therapeutic puncture). In contrast to the primary endpoint, patients who died before the next puncture were not included in this metric. As a result, this secondary endpoint is not affected by the prognosis of these patients at the onset of ascites. The median time to the first therapeutic puncture for all non-ovarian cancers was 80 days (control group: 15 days; p< 0.0001). Patients with gastric cancer benefited especially from the treatment. Median time to the first therapeutic puncture was 118 days in the removab® group versus 15 days in the control group (p< 0.0001). For all other patients the median time to the first therapeutic puncture in the removab® group was 69 versus 15 days in the control group (p< 0.0001). On a pooled basis for both strata (ovarian and non-ovarian cancers) the median time to the first therapeutic puncture was 77 days in the treatment group versus 13 days in the control group (p< 0.0001). In addition, the EpCAM-positive tumor cell concentration in the ascites fluid decreased in patients treated with removab®. At the same time, an increase in CD45-positive leukocytes was seen. Both results indicate a direct anti-tumor effect of the trifunctional antibody.
Removab® showed a very good safety profile in this stratum. This is particularly important as malignant ascites occurs at a very late stage in patients with non-ovarian cancers. Drug-related adverse events due to cytokine release were mild to moderate and mostly fully reversible, with fever, nausea and vomiting being the most common. Pathologic increases of liver parameters and undesirable changes in white blood cell counts were also mild to moderate, transient and mostly without clinical relevance.
"These results continue to support the potential of removab. They demonstrate the significant benefit for ascites patients due to non-ovarian cancers even though they have a worse prognosis compared to ovarian cancer. This indicates that removab® could also play an important role in the treatment of ascites for all underlying non-ovarian cancers," said Dr. Thomas Gottwald, President Fresenius Biotech.
The phase II/III pivotal trial with the trifunctional antibody removab® included a total of 258 patients divided in two strata: ovarian cancer (129 patients) and non-ovarian cancers (129 patients). Based on a 2:1 randomization ratio, the removab® arm in the non-ovarian stratum included 85 patients, of which 62 received all four doses of 10, 20, 50 und 150 µg each. The intraperitoneal infusions were administered over a six-hour period in intervals of three to four days.
Non-ovarian cancer patients account for about 80 % of all malignant ascites cases. The encouraging results of this study significantly increase the number of patients that is potentially eligible for the removab® treatment.
Data on overall survival in connection with the study are expected in the second quarter of 2007 due to the longer follow-up period associated with this secondary endpoint. Market launch of removab® is expected in 2008.
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Puncture-free survival period
Period between the last infusion (control group: day of the puncture) and the first subsequent necessary puncture or death, which ever occurs first.
Trifunctional Antibodies
Trifunctional antibodies are developed by Fresenius Biotech in cooperation with TRION Pharma. Trifunctional antibodies are proteins that bring together cancer cells with two different cell types of the immune system: T-cells and accessory cells (e.g., natural killer cells, macrophages). This mode of action of the trifunctional antibody is the basis for an immune response against the tumor.
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Fresenius Biotech is a company of the Fresenius Group, focused on the development and marketing of biopharmaceuticals in the fields of oncology, immunology and regenerative medicine.
For more information visit the company's website at www.fresenius-biotech.com.
Fresenius is a health care group with international operations, providing products and services for dialysis, hospital and the ambulatory medical care of patients. In 2006 group sales were about € 10.8 billion. On December 31, 2006 the Fresenius Group had 104,872 employees worldwide.
Fresenius ProServe closed the announced divestiture of its subsidiary Pharmaplan GmbH to NNE A/S on March 31, 2007. All necessary antitrust approvals were received by NNE prior to the completion of the acquisition.
NNE is a wholly-owned subsidiary of Novo Nordisk A/S, Copenhagen, a pharmaceutical company with approximately 23,200 employees worldwide and annual sales of € 5,194 million in 2006.
Pharmaplan provides consulting, engineering and qualification/validation services for the pharmaceutical industry worldwide. The sale of Pharmaplan is a further step by Fresenius ProServe to focus on its two core areas hospital operations (HELIOS Kliniken) and hospital engineering and services (VAMED).
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Fresenius is a health care group with international operations, providing products and services for dialysis, hospital and the ambulatory medical care of patients. In 2006 group sales were about € 10.8 billion. On December 31, 2006 the Fresenius Group had 104,872 employees worldwide.
Fresenius Kabi, a European leader in infusion therapy and clinical nutrition, has entered into an agreement with Kyorin Pharmaceutical Co. Ltd., Tokyo, Japan, to acquire its artificial colloid product business. Fresenius Kabi acquires the rights for the production, marketing and sale of these products. Kyorin's artificial colloids sales were € 5.2 million in the fiscal year ended March 31, 2006. The colloids are based on hydroxyethyl starch (HES) and are mainly used in surgical and emergency procedures to substitute blood loss. Kyorin is the only provider of HES products for blood volume replacement in Japan.
In addition, Fresenius Kabi is currently setting up a subsidiary in Tokyo for the marketing and distribution of the acquired products as well as its own product portfolio in Japan. The new subsidiary will allow Fresenius Kabi to enhance its presence in the world's second largest healthcare market.
"In Japan, we are focusing on the intensive care and acute care hospital segments. Kyorin's artificial colloids will perfectly complement Fresenius Kabi's product range. With these products, we will enter the Japanese blood-volume replacement market for the first time. We believe that the high medical benefits and the strong patient safety profile of HES products offer excellent growth opportunities in this attractive market segment", said Mats Henriksson, President of Fresenius Kabi's Asia-Pacific region.
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About Fresenius Kabi
Fresenius Kabi's core product range includes infusion solutions for fluid substitution, blood volume expansion and parenteral nutrition, as well as products for enteral nutrition. Furthermore the company provides concepts for ambulatory health care and is focused on managing and providing home therapies. With its philosophy "Caring for life" and a broad product and service portfolio, the company aims at improving the quality of life of patients all over the world.
The company has 15,591 employees. Fresenius Kabi achieved sales of € 1,893 million and an operating profit of € 291 million in 2006.
Fresenius Kabi AG is a 100% subsidiary of the health care group Fresenius AG.
For details please visit www.fresenius-kabi.com.
About Kyorin
Kyorin is a pharmaceutical company with a long-standing tradition in healthcare. The company is focused on the marketing and sale of drugs for respiratory, otolaryngologic (ear, nose and throat medicine) and urologic diseases.
As of March 31, 2006 (end of the fiscal year), Kyorin Pharmaceutical Co. Ltd. achieved sales of 67.4 bn JPY (approximately € 440 million) and employed 1,502 people worldwide. Kyorin Pharmaceutical Co., Ltd. is a 100% subsidiary of Kyorin Co. Ltd. Kyorin Co. Ltd. is listed on the Tokyo Stock Exchange.
Summary First Quarter 2007
- Net revenue : $ 2,321 million, + 33%
- Operating income (EBIT): $ 365 million, + 50%
- Net income: $ 160 million, + 38%
- Earnings per share: $ 1.63, + 37%
Fresenius Medical Care AG & Co. KGaA ("the Company"), the world's largest provider of Dialysis Products and Services, today announced its results for the first quarter of 2007.
The operations of Renal Care Group (RCG) are included in the Company's consolidated statements of income and cash flows from April 1, 2006, therefore, the current quarter's results are not directly comparable with the first quarter's results for 2006.
Revenue
Net revenue for the first quarter 2007 compared to the first quarter 2006 increased by 33% to $2,321 million (31% at constant currency). Organic revenue growth worldwide was 9%. Dialysis Services revenue grew by 38% to $1,760 million (37% at constant currency) in the first quarter of 2007. Dialysis Product revenue increased by 18% to $560 million (13% at constant currency) in the same period.
North America revenue increased by 37% to $1,637 million. Dialysis Services revenue increased by 40% to $1,483 million. Average revenue per treatment for the U.S. clinics increased by 6% to $329 in the first quarter 2007 compared to $310 for the same quarter in 2006. Dialysis Product revenue increased by 14% to $153 million led by strong sales of our 2008K hemodialysis machines and the phosphate binding drug PhosLo.
International revenue was $684 million, an increase of 24% (17% at constant currency) compared to the first quarter of 2006. Dialysis Services revenue reached $277 million, an increase of 30% (24% at constant currency). Dialysis Product revenue rose by 20% to $407 million (12% at constant currency), led by strong sales of dialyzers and peritoneal dialysis products.
Earnings
Operating income (EBIT) increased by 50% to $365 million compared to $244 in the first quarter 2006. This translates into an operating margin of 15.7%. For the first quarter 2006, the operating margin was 14.0%.
Compared with the first quarter 2006, the operating margin in North America increased by 200 basis points to 15.8%, due to the consolidation of RCG, revenue rate improvements, the new PhosLo business and higher product sales. In the International segment, the operating margin increased by 30 basis points to 17.6%. The continued strong operational performance in the International segment was driven by increased product sales in all regions.
Net interest expense for the first quarter 2007 was $95 million compared to $56 million in the same quarter of 2006. This increase is entirely attributable to the debt financing for the RCG acquisition.
Income tax expense was $103 million for the first quarter of 2007 compared to $71 million in the first quarter of 2006, reflecting effective tax rates of 38.0% and 37.9%, respectively.
Net income for the first quarter 2007 was $160 million, an increase of 38%. Net income increased by 28% when compared to the first quarter 2006 excluding one-time effects in 2006.
Earnings per share (EPS) for the first quarter of 2007 rose by 37% to $1.63 per ordinary share ($0.54 per American Depositary Share (ADS)) compared to $1.19 ($0.40 per ADS) for the first quarter of 2006. The weighted average number of shares outstanding for the first quarter of 2007 was approximately 98.4 million shares compared to 97.8 million shares for the first quarter of 2006. The increase in shares outstanding results from stock option exercises in 2006 and in the first quarter 2007.
Cash Flow
In the first quarter of 2007, the Company generated $283 million in cash from operations, representing 12% of revenue. The strong cash flow generation was primarily supported by increased earnings.
A total of $109 million was spent for capital expenditures, net of disposals. Free Cash Flow before acquisitions was $174 million compared to $97 million in the first quarter of 2006. A total of $90 million in cash was used for acquisitions. Free Cash Flow after acquisitions was $84 million compared to $87 million last year excluding the acquisition of Renal Care Group.
Please refer to the appendix for a complete overview on the first quarter of 2007.
Patients – Clinics – Treatments
As of March 31, 2007, Fresenius Medical Care treated 169,216 patients worldwide, which represents a 27% increase in patients compared to last year. North America provided dialysis treatments for 118,732 patients, an increase of 32%. Including 32 clinics managed by Fresenius Medical Care North America, the number of patients in North America was 120,603. The International segment served 50,484 patients, an increase of 17% over last year.
As of March 31, 2007, the Company operated a total of 2,194 clinics worldwide. This is comprised of 1,574 clinics in North America, an increase of 35%, and 620 clinics in the International segment, an increase of 16%.
Fresenius Medical Care delivered approximately 6.41 million dialysis treatments worldwide, which represents an increase of 28% year over year. North America accounted for 4.48 million treatments, an increase of 33%, and the International segment delivered 1.93 million treatments, an increase of 17% over last year.
Employees
As of March 31, 2007, Fresenius Medical Care employed 59,076 people (full-time equivalents) worldwide compared to 56,803 employees at the end of 2006. The increase of 2,273 employees is primarily due to the acquisition of Jiate Excelsior Co. Ltd. in Taiwan (announced in January 2007) and continued organic growth in the U.S.
Debt/EBITDA ratio
The ratio of debt to Earnings before Interest, Taxes and Amortization (EBITDA) decreased from 3.81 at the end of first quarter of 2006 to 3.09 at the end of the first quarter 2007. At the end of 2006, the debt/EBITDA ratio was 3.23.
Rating
In the first quarter 2007, Standard & Poor's Ratings Services revised its outlook of the Company to stable from negative. At the same time, the ‘BB' long-term corporate credit ratings on Fresenius Medical Care were affirmed. Moody's upgraded Fresenius Medical Care Senior Secured Credit Facility from Ba2 to Ba1.
Fresenius Medical Care Proposes Share Split of 1:3
On March 21, 2007, the Company announced that it will propose a share split for both classes of shares (ordinary and preference) in the ratio of 1:3 at the next Annual General Meeting being held on May 15, 2007. If approved by the Shareholders, the Company expects the split to become effective in the third quarter of 2007.
Outlook for 2007 Confirmed
For the full year 2007, the Company confirms its outlook and expects to achieve revenue of approximately $9.4 billion. This represents an increase of 11%.
Net income is projected to be in the range of $675 million and $695 million in 2007. This represents an increase of between 18% and 21% on an adjusted basis as compared to 2006 after one-time effects. On a reported basis, this translates into an increase in net income of between 26% and 29%.
In addition, the Company expects spending on capital expenditures and acquisitions to be approximately $650 million in 2007. The debt/EBITDA ratio is projected to be below 3.0 by the end of 2007.
Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented: "We are pleased to again deliver exceptionally strong financial results for the first quarter of 2007. Our strong performance was driven by our continuous quality improvement initiatives at the local clinical level, by cost leadership at the regional level, and by our commitment to advance our strategic objectives at the corporate level. The advantages of being the world's only vertically-integrated dialysis provider are increasingly evident as we compete in the global marketplace."
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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 1,500,000 individuals worldwide. Through its network of 2,194 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to 169,216 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. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME, FME3) and the New York Stock Exchange (FMS, FMS/P).
For more information about Fresenius Medical Care visit the Company's website at www.fmc-ag.com.
Fresenius Medical Care
Statement of Earnings see PDF-file
- Sales: € 2.77 billion, + 16 % at actual rates, + 22 % in constant currency
- EBIT: € 380 million, + 31 % at actual rates, + 37 % in constant currency
- Net income: € 93 million, + 43 % at actual rates, + 48 % in constant currency
- All business segments in line with forecast
- Continued strong sales and earnings growth
Fresenius ProServe to focus on hospital business – agreement reached to sell Pharmatec to Robert Bosch GmbH
Outlook for 2007 confirmed
Based on the Group's strong financial results in the first quarter, Fresenius fully confirms its positive outlook for 2007 issued at the end of February. Group sales are expected to grow by 8 to 10 % in constant currency. Net income is expected to increase by 20 to 25 % in constant currency. Further margin improvements in all business segments are expected to contribute to this growth.
Sales – Very good organic growth
Group sales increased by 16 % to € 2,767 million in the first quarter of 2007 (Q1 2006: € 2,388 million). Organic growth was 7 %. Acquisitions contributed 17 %, in particular Renal Care Group which was consolidated for the first time as from the second quarter of 2006. Divestitures reduced sales by 2 %. Currency translation effects had a negative impact of 6 %. This was mainly attributable to the average dollar depreciation of 9 % against the euro in the first quarter of 2007 compared to previous year's period.
In North America sales grew significantly due to the Renal Care Group consolidation and an excellent organic growth rate of 9 %. In Europe sales increased by 8 % in constant currency, with organic growth of 4 %. Strong growth rates were achieved in the emerging markets with organic growth of 12 % in Asia-Pacific, 10 % in Latin America and 25 % in Africa.
Excellent earnings growth
EBITDA increased by 34 % in constant currency and by 27 % at actual rates to € 479 million (Q1 2006: € 377 million). Group operating income (EBIT) increased by 37 % in constant currency and by 31 % at actual rates to € 380 million (Q1 2006: € 291 million). This growth was driven by the successful operating results in all business segments. The Group's EBIT margin improved to 13.7 % (Q1 2006: 12.2 %).
Group net interest was € -95 million (Q1 2006: € -84 million, incl. one-time expenses of € 25 million for the early refinancing of Group debt). This increase was primarily driven by debt financing of the Renal Care Group acquisition as from Q2 2006.
The tax rate further improved to 36.1 % from 36.7 % in Q1 2006.
Minority interest was € 89 million (Q1 2006: € 66 million), of which 93 % was attributable to the minority interest in Fresenius Medical Care.
Group net income grew strongly by 48 % in constant currency and by 43 % at actual rates to € 93 million (Q1 2006: € 65 million, incl. one-time expenses of € 11 million).
Earnings per ordinary share were € 0.60 and earnings per preference share were € 0.60 (Q1 2006 adjusted for the share split in February 2007: ordinary share € 0.43 and preference share € 0.43). This is an increase of 40 %.
Investments at high level
Fresenius Group spent € 140 million for property, plant and equipment and intangible assets (Q1 2006: € 100 million). Acquisition spending was € 155 million (Q1 2006: € 3,290 million).
Strong cash flow
Operating cash flow increased by 54 % to € 287 million (Q1 2006: € 186 million), mainly driven by the strong increase in earnings. Cash flow before acquisitions and dividends increased to € 155 million (Q1 2006: € 91 million). The free cash flow after acquisitions (€ 63 million) and dividends (€ 4 million) was € 88 million (Q1 2006: € -3,199 million).
Solid balance sheet structure
Total assets increased in constant currency and at actual rates by 1 % to € 15,159 million (December 31, 2006: € 15,024 million). Current assets increased by 1 % to € 4,165 million (December 31, 2006: € 4,106 million). Non-current assets were € 10,994 million (December 31, 2005: € 10,918 million).
Shareholders' equity including minority interest grew by 3 % to € 5,873 million (December 31, 2006: € 5,728 million). The equity ratio (including minority interest) was 38.7 % (December 31, 2006: 38.1 %).
The Group's debt was € 5,778 million (December 31, 2006: € 5,872 million). Given the excellent earnings growth and a strong cash flow the net debt/EBITDA ratio improved to 2.8 as of March 31, 2007 (December 31, 2006: 3.0).
Employees
As of March 31, 2007, the Group had 107,348 employees (December 31, 2006: 104,872), an increase of 2 %.
Fresenius Biotech
Fresenius Biotech develops innovative therapies with trifunctional antibodies for the treatment of cancer as well as cell therapies for the treatment of the immune system. In the field of polyclonal antibodies, Fresenius Biotech has successfully marketed ATG-Fresenius S for many years. ATG-Fresenius S is an immunosuppressive agent used to prevent and treat graft rejection following organ transplantation.
In March 2007, encouraging results in the non-ovarian cancer patient stratum of a phase II/III pivotal study on malignant ascites were published, including treatment data of 129 patients. The results showed a clear advantage of the therapy with the trifunctional antibody removab® over a therapy with puncture alone. Data on overall survival of all 258 patients for both strata of the study are expected in the second quarter of 2007.
The Phase II studies with the antibody rexomun® to treat breast cancer and with the antibody removab® to treat gastric cancer are ongoing. These studies started in March 2006 and June 2006 respectively. A phase II study with removab® is due to start in Europe in the first half of 2007 for the treatment of patients with ovarian cancer.
Fresenius Biotech's operating income (EBIT) was € -11 million in Q1 2007. For 2007, Fresenius Biotech expects an EBIT of approximately € -50 million (2006: € -45 million).
The Business Segments
Fresenius Medical Care
Fresenius Medical Care is the world's leading provider of services and products for patients with chronic kidney failure. As of March 31, 2007, Fresenius Medical Care was serving 169,216 patients in 2,194 dialysis clinics.
- Excellent sales increase and high organic growth in all regions
- Continued strong earnings growth
- Outlook for 2007 fully confirmed
Fresenius Medical Care achieved strong sales growth of 33 % to US$ 2,321 million (Q1 2006: US$ 1,747 million), mainly driven by the excellent organic growth of 9 % and by the consolidation of Renal Care Group. Sales in dialysis care increased by 38 % to US$ 1,760 million (Q1 2006: US$ 1,273 million). In dialysis products Fresenius Medical Care achieved sales of US$ 560 million (Q1 2006: US$ 474 million), an increase of 18 %.
In North America Fresenius Medical Care's sales increased by 37 % to US$ 1,637 million (Q1 2006: US$ 1,194 million). Sales outside North America ("International") grew by 24 % (17 % in constant currency) to US$ 684 million (Q1 2006: US$ 553 million). This was primarily driven by the positive operating performance in Europe and the Asia-Pacific region.
Fresenius Medical Care increased EBIT by 50 % to US$ 365 million (Q1 2006: US$ 244 million), the EBIT margin was 15.7 % (Q1 2006: 14.0 %). Net income increased by 38 % to US$ 160 million (Q1 2006: US$ 116 million, incl. one-time expenses of US$ 9 million).
For the full year 2007, Fresenius Medical Care confirms its outlook and expects sales of about US$ 9.4 billion. The net income is expected to be between US$ 675 million and US$ 695 million.
For further information, please see Fresenius Medical Care's press release at www.fmc-ag.com.
Fresenius Kabi
Fresenius Kabi offers infusion therapies and clinical nutrition for seriously and chronically ill patients in the hospital and out-patient environments. The company is also a leading provider of transfusion technology products.
- Very good organic sales growth
- Continued strong earnings development
- Outlook for 2007 fully confirmed
In the first quarter of 2007, Fresenius Kabi's sales increased by 4 % to € 483 million (Q1 2006: € 466 million). Currency translation effects had an impact of -3 %. This was mainly due to the depreciation of the currencies in China, Brazil, Mexico and Canada against the euro. Organic growth was 6 %, acquisitions contributed 1 % to growth.
Organic sales in Europe (excluding Germany) increased by 5 %. In Germany organic sales decreased by 1 %. Outside Europe, Fresenius Kabi achieved organic sales growth of 22 % in the Asia-Pacific region. In Latin America organic sales growth was 7 % and in other regions 8 %.
Fresenius Kabi achieved a very good EBIT growth, with an increase of 13 % to € 77 million (Q1 2006: € 68 million). The EBIT margin was 15.9 % (Q1 2006: 14.6 %). Net income rose by 62 % to € 42 million (Q1 2006: € 26 million, including one-time expenses for early debt refinancing of € 8 million).
Fresenius Kabi confirms its outlook for the full year 2007. The company expects a further successful sales and earnings performance. Organic sales growth is projected to be 6 to 8 %. Continued strong sales growth is anticipated from the regions outside Europe. Based on the positive sales projection and further manufacturing and logistics improvements Fresenius Kabi expects an EBIT margin of 16.0 to 16.5 % in 2007.
Fresenius ProServe
Fresenius ProServe is a leading German hospital operator with 55 facilities. Moreover, the company offers engineering and services for hospitals and other health care facilities.
- Strong operating results achieved
- Divestiture of Pharmaplan finalized, agreement signed to sell Pharmatec to Robert Bosch GmbH
- Outlook for 2007 fully confirmed
Fresenius ProServe's sales grew by 9 % to € 521 million in Q1 2007 (Q1 2006: € 476 million). Organic growth was 3 %. EBIT increased by 20 % to € 36 million (Q1 2006: € 30 million).
Sales in hospital operations (HELIOS Kliniken Group) increased by 15 % to € 439 million (Q1 2006: € 383 million). The sales growth is mainly attributable to the acquisition of HUMAINE Kliniken, which was consolidated as of July 1, 2006. HELIOS also achieved strong organic growth of 3 %. EBIT increased by 19 % to € 32 million, the EBIT margin was 7.3 % (Q1 2006: € 27 million and 7.0 %).
In 2007, HELIOS continued its growth strategy in the German hospital market. The company acquired two hospitals in North Rhine-Westphalia with approximately 330 beds and revenues of € 32 million in 2006. A further hospital was acquired on Lake Constance with 170 beds and revenues of € 22 million in 2005 and was consolidated as from January 1, 2007. In addition, the option to acquire the outstanding equity stake (40 %) in HUMAINE Kliniken GmbH was exercised.
Sales in the engineering and services business was € 82 million (Q1 2006: € 93 million). The decrease was due to the sale of Pharmaplan, which was deconsolidated as of January 1, 2007. Organic growth was 2 %. EBIT of € 5 million was at previous year's level. Order intake continued to develop very positively and increased by 18 % to € 78 million (Q1 2006: € 66 million). Order backlog was € 431 million (December 31, 2006: € 428 million).
On May 1, 2007, Fresenius ProServe agreed to sell its subsidiary Pharmatec to Robert Bosch GmbH. With the divestiture of Pharmaplan and Pharmatec, Fresenius ProServe completes its strategy to focus on its business with hospitals and other healthcare facilities. Pharmatec manufactures high quality pure steam, pure water and sterilization equipment for the pharmaceutical industry. In 2006, the company had sales of about € 30 million. The transaction requires antitrust approval. Fresenius ProServe anticipates the closing of the transaction mid-year 2007.
Fresenius ProServe confirms its outlook for the full year 2007 and expects organic sales growth of 2 to 3 %. EBIT is expected to increase to € 160 to 170 million.
Conference Call
As part of the publication of the first quarter 2007 results, a conference call will be held on May 2, 2007 at 2.00 p.m. CEDT (8.00 a.m. EDT). We invite all interested to follow the conference call over our website. Following the conference, a recording of the call will be available.
Fresenius Group in Figures
- Consolidated statement of income (US GAAP) (unaudited)
- Key figures of the balance sheet (US GAAP) (unaudited)
- Cash flow statement (US GAAP) (unaudited)
- Segment reporting by business segment Q1/2007 (US GAAP) (unaudited)
see PDF-file
At the Annual General Meeting in Frankfurt, Germany, a large majority of Fresenius Medical Care's shareholders approved the Management and Supervisory Boards' proposal for a share split in the ratio of 1:3. The corresponding resolution was supported by far more than 99 per cent of the represented ordinary share capital. The share split will become effective upon the registration in the commercial register, which is expected in the third quarter of 2007.
After the share split, every holder of an ordinary share will hold three ordinary shares and every holder of a preference share will hold three preference shares. As a result of the share split, the share price will be reduced arithmetically to one third without affecting the overall value for shareholders. The share split is intended to promote trading activity in Fresenius Medical Care shares and to increase the shares' attractiveness for a broader group of investors. The strong performance of the Company in recent years has led to a sharp increase in the share price which is currently one of the highest in Germany's DAX index.
Through a conversion of capital reserves, the subscribed capital of Fresenius Medical Care AG & Co. KGaA is first increased to € 295.2 million. The subscribed capital is then divided into 291,449,373 ordinary shares and 3,720,522 preference shares. The new amount of the subscribed capital will then be € 1.00 per share.
In addition, shareholders of Fresenius Medical Care approved the tenth consecutive dividend increase. Ordinary shareholders will receive € 1.41 per share (prior year: € 1.23) and preference shareholders will receive € 1.47 (prior year: € 1.29). Shareholders discharged Management and Supervisory Board with a large majority of far more than 99 per cent.
At the Annual General Meeting, 74.24 per cent of the ordinary share capital and 5.33 per cent of the preference share capital was represented. Only ordinary shareholders were entitled to vote.
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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 1,500,000 individuals worldwide. Through its network of 2,194 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to 169,216 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. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME, FME3) and the New York Stock Exchange (FMS, FMS/P).
For more information about Fresenius Medical Care visit the Company's website at www.fmc-ag.com.
Following the company's very strong 2006 financial results, Fresenius expects to significantly expand its sales and earnings in 2007. At the company's Annual General Meeting in Frankfurt, Germany, Dr. Ulf M. Schneider, Chairman of the Management Board, said that "We have had an excellent start into the fiscal year 2007 and confirm our guidance for the full year." According to the company's outlook released in February, Fresenius expects Group sales to increase on a currency-adjusted basis by 8 to 10% in 2007 while net income is expected to grow by 20 to 25%.
Referring to the company's mid-term goals, Dr. Schneider stated: "We intend to continue our steady growth as we look towards the year 2010. The Management Board has set a mid-term target we call 15/15. We are targeting revenues of €15 billion and we expect to achieve an EBIT margin of 15% by the year 2010. We plan to achieve this target through sales and earnings growth in all business segments. In addition, we will be looking to strengthen our business segments through small and mid-sized acquisitions."
During the Annual General Meeting Fresenius shareholders unanimously approved a 15 percent increase in dividends, the 14th consecutive increase. Holders of ordinary shares will receive €0.57 per share (2005: €0.49, after adjusted for the share split) and holders of preference shares will receive €0.58 (2005, €0.50, after adjusted for the share split). A total of €88.8 million (2005: €75.8 million) will be distributed as dividends.
90.88 percent of the ordinary share capital and 8.73 percent of the preference share capital was represented at the Annual General Meeting. Shareholders approved the actions of the Management and Supervisory Boards with an overwhelming majority (99.99 percent).
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Fresenius is a health care group with international operations, providing products and services for dialysis, hospital and the ambulatory medical care of patients. In 2006 group sales were about € 10.8 billion. On December 31, 2006 the Fresenius Group had 104,872 employees worldwide.
Fresenius AG today announced that it will reorganize its hospital business effective January 1, 2008. The current business segment Fresenius ProServe will be replaced by the two new business segments Fresenius HELIOS and Fresenius VAMED which so far have formed Fresenius ProServe. Following the reorganization, the Fresenius Group will have four business segments – Fresenius Medical Care, Fresenius Kabi, Fresenius HELIOS and Fresenius VAMED.
This step underlines the growing importance of the hospital operations business (HELIOS) and the engineering and services business for hospitals (VAMED). In future, these business segments will be run independently and be directly represented in Fresenius AG's Management Board.
In 2006, HELIOS Kliniken achieved revenues of € 1.67 billion. Operating income was € 133 million. HELIOS owns 58 clinics with 15,800 beds. The company will continue to operate under its original name HELIOS Kliniken GmbH. VAMED had revenues of € 392 million in 2006. Operating income was € 24 million. In addition, VAMED handled approximately € 350 million in third-party revenues through management contracts. VAMED has a strong international presence and managed healthcare projects in approximately 80 countries. The company will also continue to operate under its original name VAMED AG.
The following shows the new group structure:
As part of the new organizational structure, Dr. Francesco De Meo (43) and Dr. Ernst Wastler (48) will join the Management Board of Fresenius AG effective January 1, 2008. Francesco De Meo will be responsible for the business segment Fresenius HELIOS. Ernst Wastler will be in charge of the business segment Fresenius VAMED.
Since July 1, 2000, Dr. Francesco De Meo has served as a managing director of HELIOS Kliniken GmbH with responsibility for personnel and legal affairs. He will succeed Ralf Michels as CEO of HELIOS Kliniken GmbH effective January 1, 2008. Ralf Michels will then become a member of the Supervisory Board of HELIOS Kliniken GmbH.
Ernst Wastler has served as CEO of VAMED AG since July 1, 2001. He joined the company in 1984 and has contributed significantly to the international expansion of VAMED.
As a result of the reorganization, Andreas Gaddum, member of the Management Board of Fresenius AG and responsible for the business segment Fresenius ProServe, will leave the company by mutal agreement effective December 31, 2007. Andreas Gaddum has played a key role in focussing Fresenius ProServe on the hospital business.
In addition, Fresenius announced the appointment of Dr. Jürgen Götz (43) as member of the Management Board of Fresenius AG effective July 1, 2007. Jürgen Götz will be responsible for legal, compliance and personnel affairs. He also will assume the position as Labor Relations Director from Stephan Sturm who will continue to serve as CFO of Fresenius AG.
"The new organizational structure sets the stage for the focused expansion of Fresenius HELIOS and Fresenius VAMED within our group. In addition, we reduce the number of management layers and increase the transparency of the hospital business for our investors. I would like to thank Andreas Gaddum for his significant contributions and his achievements in Fresenius ProServe's strategic realignment. At the same time, I am looking forward to working with Jürgen Götz, Francesco De Meo and Ernst Wastler in the Fresenius Management Board. They have done an outstanding job in their current assignments and are superbly qualified to be part of our senior leadership team as we take the company to the next level", commented Dr. Ulf M. Schneider, Chairman of the Management Board of Fresenius AG.
The Company expects no restructuring costs to result from these organizational changes. Fresenius Group will adjust its financial reporting to the new structure in the first quarter of 2008.
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Fresenius is a health care group with international operations, providing products and services for dialysis, hospital and outpatient medical care. In 2006 group sales were about € 10.8 billion. On March 31, 2007 the Fresenius Group had 107,348 employees worldwide.
Fresenius Medical Care AG & Co. KGaA ("the Company"), the world's largest provider of Dialysis Products and Services, today announced that the share split with capital increase from the Company's funds approved by the Ordinary General Meeting on May 15, 2007, will become effective on June 18, 2007. On the same day, the shares will be traded "ex split" and the shareholders' deposits will be adapted to the new number of shares. Every holder of an ordinary share now holds three ordinary shares and every holder of a preference share holds three preference shares. As a result of the share split, the price level will be reduced arithmetically without affecting the overall value for shareholders.
The Fresenius Medical Care shares will continue to trade under ISIN DE0005785802 (ordinary share) and ISIN DE0005785836 (preference share).
The subscribed capital of Fresenius Medical Care AG & Co. KGaA now amounts to €295,422,342.00, divided into 291,701,520 ordinary shares and 3,720,822 preference shares.
For American Depositary Share (ADS) Investors:
Fresenius Medical Care shares are traded on the New York Stock Exchange (NYSE) in the form of ADSs under the ISIN US3580291066 (ordinary share) and ISIN US3580292056 (preference share). Before the share split 3 ADSs represented 1 underlying Share. Upon effectiveness of the share split, the ratio between the ordinary and preference ADS and the underlying ordinary and preference shares is now 1:1, meaning that one Fresenius Medical Care ordinary or preference ADSs is the equivalent of one Fresenius Medical Care ordinary or preference share.
For more information about Fresenius Medical Care visit the Company's website at www.fmc-ag.com.
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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 1,500,000 individuals worldwide. Through its network of 2,194 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to 169,216 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. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME, FME3) and the New York Stock Exchange (FMS, FMS/P).
Fresenius Medical Care AG & Co. KGaA ("the Company") (Frankfurt Stock Exchange: FME, FME3) (NYSE: FMS, FMS-p), the world's largest provider of Dialysis Products and Services, today announced that it intends to sell approximately US$ 500 million senior unsecured notes. The notes will be offered mainly to US institutional investors. Proceeds from the offering will be used to reduce indebtedness under the Company's senior secured bank credit facility and other, short-term debt, and for general corporate purposes.
The proposed offering will not be registered under the Securities Act of 1933, but will be offered in the United States pursuant to an exemption from registration under Rule 144A as well as outside the United States under Regulation S. The Company expects completion of the offering at the beginning of July 2007.
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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 1,500,000 individuals worldwide. Through its network of 2,194 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to 169,216 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. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME, FME3) and the New York Stock Exchange (FMS, FMS/P).
For more information about Fresenius Medical Care visit the Company's website at www.fmc-ag.com.