Skip to main content

Fresenius Medical Care AG & Co. KGaA (the "company" or "Fresenius Medical Care"; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world's largest provider of dialysis products and services, successfully placed U.S. dollar senior unsecured notes in the amount of $500 million due 2020 with a coupon of 4.125% and in the amount of $400 million due 2024 with a coupon of 4.75% (together "the senior notes"). Net proceeds are intended to be used to repay short-term borrowings under the 2012 Credit Agreement as well as other short term debt, and for acquisitions and general corporate purposes. The senior notes were issued at par by Fresenius Medical Care US Finance II, Inc., a wholly owned subsidiary of the company.

The senior notes were offered through a private placement to qualified institutional investors and will be guaranteed jointly and severally by the company and its subsidiaries, Fresenius Medical Care Holdings, Inc. and Fresenius Medical Care Deutschland GmbH.

The senior notes will not be registered under the U.S. Securities Act of 1933. The senior notes were offered in the U.S. to "qualified institutional buyers" QIBs pursuant to the exemption from registration under Rule 144A of the Securities Act, and in exempted offshore transactions pursuant to Regulation S under the Securities Act. The senior notes may not be offered or sold in the U.S. unless registered under the Securities Act or pursuant to an applicable exemption from registration requirements.

Application has been made for admission of the senior notes to trading on the regulated market of the Luxembourg Stock Exchange.

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 2.5 million individuals worldwide. Through its network of 3,335 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatments for 280,942 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.

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.

The information contained in this release may not be issued or distributed in or into South Africa, Australia or Japan and does not constitute an offer to sell nor an invitation to subscribe for, underwrite or otherwise acquire securities in South Africa, Australia or Japan.

This release does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe for, underwrite or otherwise acquire, any securities of Fresenius Medical Care US Finance II, Inc. or Fresenius Medical Care or any present or future member of its group nor should it or any part of it form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities of Fresenius Medical Care US Finance II, Inc. or Fresenius Medical Care or any member of its group. In particular, this release is not an offer to sell or a solicitation of offers to purchase any securities in the United States of America including its territories and possessions, and securities of Fresenius Medical Care US Finance II, Inc. and Fresenius Medical Care may not be offered or sold in the United States of America or to United States persons absent registration under the Securities Act of 1933, as amended, or pursuant to an applicable exemption from registration.

This announcement is not a prospectus within the meaning of the European Union Prospectus Directive. Investors should base any decision to purchase or subscribe for any securities referred to in this announcement only on the basis of information in the prospectus issued by the company in connection with the offering of such securities in Luxembourg and Germany. Copies of the prospectus will be available to investors in Luxembourg and Germany free of charge from Fresenius Medical Care AG & Co. KGaA at Else-Kröner-Strasse 1, 61352 Bad Homburg, Germany.

- Third quarter shows strong organic revenue growth
- Operating cash flow on record level in third quarter
- Company remains on track to achieve full year guidance

Third quarter 2014 key figures:

Net Revenue: $4,113 million, +12%
Operating income (EBIT): $590 million, +6%
Net income1: $271 million, -1%
Basic earnings per share: $0.89, -1%

First nine months 2014 key figures

Net Revenue: $11,511 million, +7%
Operating income (EBIT): $1,591 Million, 0%
Net income1: $710 million -7%
Basic earnings per share: $2.35, -6%

1attributable to shareholders of Fresenius Medical Care AG & Co. KGaA

Rice Powell, chief executive officer of Fresenius Medical Care stated: "The third quarter has confirmed the positive trend from the previous quarter. Growth rates in revenue and earnings again improved and our operating cash flow has reached an all time high for a single quarter. We are on track to achieve our guidance as well as our cost savings target for the full year. The recent acquisitions, in combination with financing activities were important steps in the execution of our strategy to achieve our long term target 2020."

Third quarter 2014

Revenue

Net revenue for the third quarter of 2014 increased by 12% to $4,113 million (+13% at constant currency) as compared to the third quarter of 2013. Organic revenue growth worldwide was 7%. Dialysis services revenue grew by 14% to $3,197 million (+15% at constant currency) and dialysis product revenue increased by 7% to $916 million (+7% at constant currency) as compared to the third quarter of 2013.

North America revenue for the third quarter of 2014 increased by 11% to $2,710 million. Organic revenue growth was 5%. Dialysis services revenue grew by 12% to $2,498 million with a same store treatment growth of 3.5%. Dialysis product revenue was flat compared to the third quarter of 2013 at $212 million.

International revenue increased by 13% to $1,386 million (+16% at constant currency). Organic revenue growth was 8%. Dialysis services revenue increased by 19% to $699 million (+25% at constant currency). Dialysis product revenue increased by 9% to $687 million (+9% at constant currency).

Earnings

Operating income (EBIT) for the third quarter of 2014 increased by 6% to $590 million as compared to $557 million in the third quarter of 2013. Operating income for North America for the third quarter of 2014 was $413 million, flat as compared to the third quarter of 2013. In the International segment, operating income for the third quarter of 2014 increased by 26% to $269 million as compared to $214 million in the third quarter of 2013.

Net interest expense for the third quarter of 2014 was $99 million, compared to $103 million in the third quarter of 2013.

Income tax expense was $162 million for the third quarter of 2014, which translates into an effective tax rate of 32.9%. This compares to income tax expense of $148 million and a tax rate of 32.6% for the third quarter of 2013.

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA for the third quarter of 2014 was $271 million, a decrease of 1% compared to the corresponding number of $273 million for the third quarter of 2013.

Basic earnings per share (EPS) for the third quarter of 2014 was $0.89, a decrease of 1% compared to the corresponding number for the third quarter of 2013. The weighted average number of shares outstanding for the third quarter of 2014 was approximately 302.7 million shares, compared to 301.3 million shares for the third quarter of 2013. The increase in shares outstanding resulted from stock option exercises in the past twelve months.

Cash flow

In the third quarter of 2014, the company generated $712 million in net cash provided by operating activities, an increase of 18% compared to the corresponding figure of last year and representing 17% of revenue.

A total of $224 million was spent for capital expenditures, net of disposals. Free cash flow was $488 million compared to $430 million in the third quarter of 2013.

A total of $613 million in cash was spent for acquisitions and investments, net of divestitures. Free cash flow after investing activities was a negative $125 million as compared to $235 million in the third quarter of 2013.

First nine months 2014

Revenue and earnings

Net revenue for the first nine months of 2014 increased by 7% to $11,511 million (+8% at constant currency) as compared to the first nine months of 2013. Organic revenue growth worldwide was 5%.

Operating income (EBIT) for the first nine months of 2014 was $1,591 million as compared to $1,595 million in the first nine months of 2013.

Net interest expense for the first nine months of 2014 was $294 million as compared to $310 million in the first nine months of 2013.

Income tax expense for the first nine months of 2014 was $440 million, which translates into an effective tax rate of 33.9%. This compares to income tax expense of $421 million and a tax rate of 32.8% for the first nine months of 2013.

For the first nine months of 2014, net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA was $710 million, down by 7% from the corresponding number of $761 million for the first nine months of 2013.

In the first nine months of 2014, basic earnings per share (EPS) was $2.35, a decrease of 6% compared to the corresponding number for the first nine months of 2013. The weighted average number of shares outstanding during the first nine months of 2014 was approximately 302.0 million shares.

Cash flow

In the first nine months of 2014, the company generated $1,274 million in net cash provided by operating activities as compared to $1,446 million for the same period in 2013 and representing 11% of revenue.

A total of $639 million was spent for capital expenditures, net of disposals. Free cash flow for the first nine months of 2014 was $635 million as compared to $952 million in the first nine months of 2013.

A total of $1,045 million in cash was spent for acquisitions and investments, net of divestitures. Free cash flow after investing activities was a negative $410 million as compared to $673 million in the first nine months of 2013.

Employees

As of September 30, 2014, Fresenius Medical Care had 97,327 employees (full-time equivalents) worldwide, compared to 89,282 employees at the end of September 2013. This increase of more than 8,000 employees was attributable to acquisitions as well as to our continued organic growth.

Balance sheet structure

The company´s total assets were $24,253 million (Dec. 31, 2013: $23,120 million), an increase of 5%. Current assets increased by 3% to $6,459 million (Dec. 31, 2013: $6,287 million). Non-current assets were $17,794 million (Dec. 31, 2013: $16,833 million), an increase of 6%.

Total equity increased by 3% to $9,750 million (Dec. 31, 2013: $9,485 million). The equity ratio was 40% as compared to 41% at the end of 2013. Total debt was $9,068 million (Dec. 31, 2013: $8,417 million). As of September 30, 2014, the debt/EBITDA ratio was 3.0 (Dec. 31, 2013: 2.8).

Please refer to the attachments for a complete overview of the results for the third quarter and first nine months of 2014.

Outlook

The company expects revenue to be at around $15.2 billion in 2014, translating into a growth rate of around 4%. This outlook excludes revenue of approximately $500 million from acquisitions completed during the first nine months of 2014.

Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to be unchanged between $1.0 billion and $1.05 billion in 2014. The company initiated a global efficiency program designed to enhance the company's performance over a multi-year period. Potential cost savings, before income taxes, of up to $60 million generated from this program, and net of implementation costs are not included in the outlook for 2014.

For 2014, the company expects to spend around $900 million on capital expenditures. Reflecting the latest acquisitions the company now expects acquisition spending of around $1.3 billion for fiscal year 2014 (previously $1 billion). The debt/EBITDA ratio is expected to be around 3.0 by the end of 2014.

Conference call

Fresenius Medical Care will hold a conference call to discuss the results of the second quarter 2014 on Tuesday, November 4, 2014 at 3.30 p.m. CET/ 9.30 a.m. EST. The company invites investors to follow the live webcast of the call at the company's website www.fmc-ag.com in the "Investor Relations" section. A replay will be available shortly after the call.

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 2.5 million individuals worldwide. Through its network of 3,349 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatments for 283,135 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.

For more information about Fresenius Medical Care, visit the company's website at www.fmc-ag.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.

Q3/2014:
Sales: €6.0 billion (+20% in constant currency, +18% at actual rates)
EBIT1: €820 million (+10% in constant currency, +9% at actual rates)
Net income2: €281 million (+5% in constant currency, +4% at actual rates)

Q1-3/2014: 
Sales: €16.7 billion (+14% in constant currency, +11% at actual rates) 
EBIT3: €2.2 billion (+3% in constant currency, +1% at actual rates)
Net income4: €768 million (+4% in constant currency, +2% at actual rates)
 
Ulf Mark Schneider, CEO of Fresenius, said: "Fresenius had a strong third quarter with growth accelerating in all four business segments. Emerging markets stood out with double-digit organic sales growth. We confirm our full year Group guidance and remain optimistic about the fundamental growth trends in our markets."
 
1before integration costs
2Net income attributable to shareholders of Fresenius SE & Co. KGaA; before integration costs
32014 before integration costs and disposal gains (two HELIOS hospitals, Rhön stake); 2013 before integration costs
4Net income attributable to shareholders of Fresenius SE & Co. KGaA; 2014 before integration costs and disposal gains (two HELIOS hospitals, Rhön stake); 2013 before integration costs

2014 Group outlook1 fully confirmed
Based on the Group's strong financial results in the first three quarters, Fresenius confirms its 2014 Group guidance. Sales are expected to increase by 14% to 16%, net income2 is expected to increase by 2% to 5% (both in constant currency).
 
The net debt/EBITDA ratio is expected to be approximately 3.25 at year-end.
 
1Includes contributions from the acquisition of hospitals from Rhön-Klinikum AG and acquisitions at Fresenius Medical Care
2Net income attributable to shareholders of Fresenius SE & Co. KGaA; 2014 before integration costs and disposal gains (two HELIOS hospitals, Rhön stake)
 

14% sales growth in constant currency
Group sales increased by 11% (14% in constant currency) to €16,711 million (Q1-3/2013: €15,032 million). Organic sales growth was 4%. Acquisitions contributed 11%. Divestitures reduced sales growth by 1%. In Q3/2014, Group sales increased by 18% (20% in constant currency) to €5,978 million (Q3/2013: €5,045 million). Organic sales growth was 6%.
 
Group sales by region developed as follows:

In the first nine months, organic sales growth was 4% in North America and 3% in Europe. In Asia-Pacific organic sales growth was 5%. In Latin America organic sales growth was 10%. In Africa, the decline in sales is mainly due to fluctuations in the project business at Fresenius Vamed. Adverse currency translation effects weighed on Group sales in Latin America (-17%), Asia-Pacific (-4%), Africa (-5%) and North America (-3%).
 
4% net income growth in constant currency
Group EBITDA1 grew by 3% (5% in constant currency) to €2,905 million (Q1-3/2013: €2,824 million). Group EBIT1 increased by 1% (3% in constant currency) to €2,223 million (Q1-3/2013: €2,202 million). The EBIT margin was 13.3% (Q1-3/2013: 14.6%). In Q3/2014 Group EBIT2 was €820 million (Q3/2013: €754 million), the EBIT margin was 13.7% (Q3/2013: 14.9%).
 
Group net interest was -€431 million (Q1-3/2013:-€449 million). Improved financing terms as well as favorable currency effects contributed to the decrease.
 
The Group tax rate1 was 29.5% and above the prior-year level (Q1-3/2013: 28.3%). This is mainly due to a special tax effect at Fresenius Medical Care in Q2/2014.
 
Noncontrolling interest was €495 million (Q1-3/2013: €504 million), of which 95% was attributable to the noncontrolling interest in Fresenius Medical Care.
 
Group net income3 increased by 2% (4% in constant currency) to €768 million(Q1-3/2013: €753 million). Earnings per share3 increased by 1% (2% in constant currency) to €1.42 (Q1-3/2013: €1.41). The weighted average number of shares outstanding was 539,976,138 (Q1-3/2013: 535,366,314). In Q3/2014, Group net income4 increased by 4% (5% in constant currency) to €281 million (Q3/2013: €271 million).
 
Group net income attributable to shareholders of Fresenius SE & Co. KGaA (including special items) increased by 11% (13% in constant currency) to €810 million (Q1-3/2013: €727 million). Earnings per share increased by 10% (12% in constant currency) to €1.50 (Q1-3/2013: €1.36). In Q3/2014, Group net income attributable to shareholders of Fresenius SE & Co. KGaA (including special items) increased by 4% (6% in constant currency) to €276 million (Q3/2013: €265 million). Earnings per share increased by 2% (4% in constant currency) to €0.51 (Q3/2013: €0.50).
 
12014 before integration costs and disposal gains (two HELIOS hospitals, Rhön stake); 2013 before integration costs
22014 before integration costs; 2013 before integration costs
3Net income attributable to shareholders of Fresenius SE & Co. KGaA; 2014 before integration costs and disposal gains (two HELIOS hospitals, Rhön stake); 2013 before integration costs
4Net income attributable to shareholders of Fresenius SE & Co. KGaA; 2014 before integration costs; 2013 before integration costs
 
Continued investment in growth
The Fresenius Group spent €854 million on property, plant and equipment (Q1-3/2013: €676 million). The Company primarily invested in the modernization and expansion of production facilities and hospitals as well as in the equipment of new, and the expansion of existing dialysis clinics.
 
Total acquisition spending was €1,861 million (Q1-3/2013: €442 million), including €805 million for the acquisition of hospitals from Rhön-Klinikum AG and €919 million for acquisitions at Fresenius Medical Care.
 
Strong cash flow margin increase in Q3
Operating cash flow increased by 8% to €1,695 million (Q1-3/2013: €1,566 million) with a margin of 10.1% (Q1-3/2013: 10.4%). The margin decrease was attributable to the payment for the W.R. Grace bankruptcy settlement of US$115 million in Q1/2014 and increased working capital at Fresenius Medical Care. Operating cash flow in Q3/2014 increased to €945 million with a margin of 15.8% (Q3/2013: €619 million with a margin of 12.3%). The strong Q3/2014 margin is due to the very good sequential and year-on-year cash flow development in all business segments.
 
Net capital expenditure increased to €848 million (Q1-3/2013: €659 million). Free cash flow before acquisitions and dividends was €847 million (Q1-3/2013: €907 million). Free cash flow after acquisitions and dividends was -€1,154 million (Q1-3/2013: €151 million).
 
1see Annual Report 2013, page 150 f.
 
Solid balance sheet structure
The Group's total assets increased by 15% (10% in constant currency) to €37,718 million (Dec. 31, 2013: €32,758 million). This increase is mainly attributable to the first-time consolidation of hospitals acquired from Rhön-Klinikum AG, acquisitions at Fresenius Medical Care and currency effects. Current assets grew by 20% (16% in constant currency) to €9,584 million (Dec. 31, 2013: €7,972 million). Non-current assets increased by 14% (8% in constant currency) to €28,134 million (Dec. 31, 2013: €24,786 million).
 
Total shareholders' equity increased by 12% (7% in constant currency) to €14,854 million (Dec. 31, 2013: €13,260 million). The equity ratio was 39.4% (Dec. 31, 2013: 40.5%).
 
Group debt grew by 16% (11% in constant currency) to €14,878 million (Dec. 31, 2013: €12,804 million). Net debt was €13,843 million (Dec. 31, 2013: €11,940 million). The increase is mainly due to the hospitals acquired from Rhön-Klinikum AG, the acquisitions at Fresenius Medical Care as well as currency effects.
 
As of September 30, 2014, the net debt/EBITDA ratio was 3.441 (Dec. 31, 2013: 2.512).
 
1Pro forma including acquired Rhön hospitals, acquisition at Fresenius Medical Care and excluding two HELIOS hospitals; before integration costs and disposal gains (two HELIOS hospitals; Rhön stake)
2Pro forma excluding advances made for the acquisition of hospitals from Rhön-Klinikum AG; before integration costs
 
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 September 30, 2014, Fresenius Medical Care was treating 283,135 patients in 3,349 dialysis clinics.

  • 7% organic sales growth in Q3
  • 17.3% operating cash flow margin in Q3
  • 2014 guidance confirmed

 
Sales increased by 7% (8% in constant currency) to US$11,511 million (Q1-3/2013: US$10,743 million). Organic sales growth was 5%. Acquisitions contributed 4%, while divestitures reduced sales growth by 1%. In Q3/2014, sales increased by 12% to US$4,113 (Q3/2013: US$3,666).
 
Sales in dialysis services increased by 8% (10% in constant currency) to US$8,928 million (Q1-3/2013: US$8,235 million). Dialysis product sales grew by 3% (3% in constant currency) to US$2,583 million (Q1-3/2013: US$2,508 million).
 
In North America, sales grew by 7% to US$7,624 million (Q1-3/2013: US$7,099 million). Dialysis services sales increased by 8% to US$7,015 million (Q1-3/2013: US$6,485 million). Dialysis product sales decreased by 1% to US$609 million (Q1-3/2013: US$614 million).
 
Sales outside North America ("International" segment) increased by 6% (9% in constant currency) to US$3,843 million (Q1-3/2013: US$3,619 million). Sales in dialysis services increased by 9% to US$1,913 million (Q1-3/2013: US$1,750 million). Dialysis product sales increased by 3% to US$1,930 million (Q1-3/2013: US$1,869 million).
 
EBIT was US$1,591 million (Q1-3/2013: US$1,595 million). The EBIT margin was 13.8% (Q1-3/2013: 14.8%). EBIT was impacted by sequestration and rebasing of Medicare's reimbursement rate in the United States. In Q3/2014, EBIT increased by 6% to US$590 million (Q3/2013: US$557 million). EBIT margin was 14.3% (Q3/2013: 15.2%).
 
Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA was US$710 million (Q1-3/2013: US$761 million). In Q3/2014, net income was US$271 million (Q3/2013: US$273 million).
 
Operating cash flow was US$1,274 million (Q1-3/2013: US$1,446 million). The decrease was mainly attributable to the payment for the W.R. Grace bankruptcy settlement of US$115 million and increased working capital in Q1/2014. The cash flow margin was 11.1% (Q1-3/2013: 13.5%). In Q3/2014, operating cash flow increased to US$712 million (Q3/2013: US$605 million), the cash flow margin was 17.3% (Q3/2013: 16.5%).
 
Fresenius Medical Care confirms its outlook for 2014. Fresenius Medical Care expects sales of approximately US$15.2 billion, translating into a growth rate of around 4%. This outlook excludes sales of approximately US$500 million from acquisitions completed during the first nine months of 2014. Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA is expected to be unchanged between US$1.0 to US$1.05 billion. The company has initiated a global efficiency program designed to enhance its performance over a multi-year period. Potential cost savings before income taxes of up to US$60 million generated from this program are not included in the outlook for 2014.
 
For further information, please see Fresenius Medical Care's Press Release at www.fmc-ag.com.
 
1Net income attributable to shareholders of Fresenius Medical Care AG & Co. KGaA 
 
Fresenius Kabi
Fresenius Kabi offers infusion therapies, intravenously administered generic drugs and clinical nutrition for seriously and chronically ill patients in the hospital and outpatient environments. The company is also a leading supplier of medical devices and transfusion technology products.

  • 5% organic sales growth in Q3
  • Sequential EBIT margin increase by 40 bps to 17.2% in Q3
  • 2014 guidance: 4 % to 6 % organic sales growth confirmed, EBIT-margin of approximately 17% expected

 
Sales were €3,760 million (Q1-3/2013: €3,742 million). In constant currency, sales increased by 4%. Organic sales growth was 3%. Acquisitions contributed 1% sales growth. Adverse currency translation effects (-4%) were mainly driven by the weaker currencies in the United States and Argentina against the Euro. In Q3/2014, sales increased by 6% (7% in constant currency) to €1,294 million (Q3/2013: €1,223 million). Organic sales growth was 5%.
 
Sales in Europe grew by 1% (organic sales growth: 2%) to €1,538 million (Q1-3/2013: €1,524 million). Sales in North America decreased by 3% (organic sales growth: 0%) to €1,118 million (Q1-3/2013: €1,158 million). Asia-Pacific sales increased by 5% (organic sales growth: 7%) to €723 million (Q1-3/2013: €689 million). Sales in Latin America/Africa increased by 3% (organic sales growth: 13%) to €381 million (Q1-3/2013: €371 million).
 
EBIT1 was €634 million (Q1-3/2013: €695 million), a decrease of 6% in constant currency. Besides currency headwinds, EBIT was impacted by lower HES sales and the easing of drug shortages in North America. The EBIT margin of 16.9% was in line with expectations and our guidance range. In Q3/2014, EBIT1 was €223 million (Q3/2013: €226 million), an increase of 1% in constant currency. Sequentially, the EBIT margin improved by 40 bps to 17.2% in Q3/2014.
 
Net income2 was €337 million (Q1-3/2013: €367 million). In Q3/2014, net income2 was €120 million (Q3/2013: €125 million).
 
Operating cash flow was €432 million (Q1-3/2013: €303 million) with a margin of 11.5% (Q1-3/2013: 8.1%). In Q3/2014, operating cash flow was €217 million (Q3/2013: €65 million) with a margin of 16.8% (Q3/2013: 5,3%).
 
Integration costs for Fenwal were €6 million (pre-tax) in Q1-3 2014. These costs are reported in the Group Corporate/Other segment.
Fresenius Kabi confirms its 2014 organic sales growth outlook of 4% to 6%. The EBIT margin is now confirmed at approximately 17%, so within the previously guided range of 16.5% to 18%.
 
Fresenius Kabi guidance excludes €40-50 million pre-tax Fenwal integration costs (€30-40 million after tax); see Group guidance
 
1before integration costs
2Net income attributable to shareholders of Fresenius Kabi AG; before integration costs

Fresenius Helios
Fresenius Helios is Germany's largest hospital operator. HELIOS owns 110 hospitals, thereof 86 acute care clinics including seven maximum care hospitals in Berlin-Buch, Duisburg, Erfurt, Krefeld, Schwerin, Wiesbaden and Wuppertal and 24 post-acute care clinics. HELIOS treats more than 4.2 million patients p.a., thereof more than 1.2 million inpatients, and operates more than 34,000 beds.

  • 6% organic sales growth in Q3
  • Sequential EBIT margin increase of 30 bps to 10.8% in Q3
  • 2014 guidance fully confirmed

 
Sales increased by 53% to €3,883 million (Q1-3/2013: €2,537 million). The strong increase is mainly due to the acquired hospitals from Rhön-Klinikum AG. The divestment of two HELIOS hospitals reduced sales growth by 2%. Organic sales growth was 4%. In Q3/2014, sales increased by 62% to €1,362 million (Q3/2013: €842 million), organic sales growth was 6%.

EBIT2 grew by 41% to €397 million (Q1-3/2013: €282 million). The EBIT margin was 10.2% (Q1-3/2013: 11.1%). The margin decline is due to the consolidation of the newly acquired hospitals. In Q3/2014, EBIT1 was €147 million (Q3/2014: €103 million). Sequentially, the EBIT margin increased by 30 bps from 10.5% in Q2/2014 to 10.8% in Q3/2014.
 
Net income3,5 increased by 47% to €286 million (Q1-3/2013: €194 million). In Q3/2014, net income3,4 increased by 43% to €107 million (Q3/2013: €75 million).
 
Sales of the established hospitals grew by 4% to €2,583 million. EBIT improved by 4% to €287 million. The EBIT margin was 11.1% (Q1-3/2013: 11.1%).
 
Sales of the acquired hospitals were €1,300 million, EBIT was €110 million and EBIT margin was 8.5%. Q3/2014 EBIT margin decreased by 20 bps sequentially to 8.9% due to the first time consolidation of the acquired hospital in Wiesbaden (HSK) as of June 30, 2014.
 
The integration of the acquired hospitals is progressing as planned. Integration costs are now expected to be between €60-80 million (before: approximately €80 million) in total for 2014 and 2015. Fresenius Helios confirms expected cost synergies of approximately €85 million p.a. by 2015.
 
Fresenius Helios fully confirms its 2014 outlook, and projects organic sales growth of 3% to 5%. The acquired hospitals are also expected to show 3% to 5% organic growth and to contribute sales of approximately €1.8 billion. EBIT for HELIOS including the acquired hospitals is expected to increase to €540-560 million.
 
Fresenius Helios guidance before integration costs for the hospitals acquired from Rhön-Klinikum AG and disposal gains of two HELIOS hospitals and Rhön stake. The integration costs will be reported in the Group Corporate/Other segment, see Group guidance.
 
12014 before integration costs
22014 before integration costs and disposal gains (two HELIOS hospitals, Rhön stake)
3Net income attributable to shareholders of HELIOS Kliniken GmbH
42014 before integration costs
52014 before integration costs and disposal gains (two HELIOS hospitals, Rhön stake)
 
Fresenius Vamed

Fresenius Vamed manages projects and provides services for hospitals and other health care facilities worldwide.

  • 7% organic sales growth in Q3
  • Record quarterly order intake of €378 million in Q3
  • 2014 guidance: flat organic sales growth expected, 5% - 10% EBIT growth expectation confirmed

 
Sales were €655 million (Q1-3/2013: €654 million). Organic sales growth was -2%, acquisitions contributed 2%. Sales in the project business decreased by 8% to €306 million (Q1-3/2013: €332 million), mainly due to project delays in Russia and Ukraine. Sales in the service business grew by 8% to €349 million (Q1-3/2013: €322 million). Sales in Q3/2014 were €257 million (Q3/2013: €233 million). Organic sales growth was 7%.
 
EBIT grew by 8% to €27 million (Q1-3/2013: €25 million) with a margin of 4.1% (Q1-3/2013: 3.8%). In Q3/2014, EBIT increased by 20% to €12 million (Q3/2013: €10 million) with a margin of 4.7% (Q3/2013: 4.3%).
 
Net income1 increased by 13% to €18 million (Q1-3/2013: €16 million). In Q3/2014, net income1 increased by 14% to €8 million (Q3/2013: €7 million).
 
Order intake increased by 78% to €678 million (Q1-3/2013: €380 million). Q3/2014 order intake was at a record level of €378 million, mainly driven by the modernization contract with the University Hospital Schleswig-Holstein in Germany. As of September 30, 2014, order backlog increased to €1,504 million (Dec. 31, 2013: €1,139 million).
 
Due to project delays in Russia and Ukraine Fresenius Vamed now expects flat organic sales growth (before: 5% to 10%). The EBIT growth guidance of 5% to 10% for 2014 remains unchanged.
 
1Net income attributable to shareholders of Vamed AG
 
Analyst-/Investor Conference Call
As part of the publication of the results for the first three quarters of 2014, a conference call will be held on November 4, 2014 at 2 p.m. CET (8 a.m. EST). All journalists are cordially invited to follow the conference call in a live broadcast via the Internet at www.fresenius.com, see Press – Audio/Video Service. Following the call, a replay of the conference call will be available on our website.

Fresenius is a global health care group, providing products and services for dialysis, hospital and outpatient medical care. In 2013, Group sales were €20.3 billion.

For more information visit the Company's website at www.fresenius.com.

This release contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Fresenius does not undertake any responsibility to update the forward-looking statements in this release.

Fresenius SE & Co. KGaA
Registered Office: Bad Homburg, Germany
Commercial Register: Amtsgericht Bad Homburg, HRB 11852
Chairman of the Supervisory Board: Dr. Gerd Krick

General Partner: Fresenius Management SE
Registered Office: Bad Homburg, Germany
Commercial Register: Amtsgericht Bad Homburg, HRB 11673
Management Board: Dr. Ulf M. Schneider (Chairman), Dr. Francesco De Meo, Dr. Jürgen Götz, Mats Henriksson, Rice Powell, Stephan Sturm, Dr. Ernst Wastler
Chairman of the Supervisory Board: Dr. Gerd Krick

Fresenius Kabi and its partners Sistema JSFC and Zenitco Finance Management LLC have mutually agreed to terminate the joint venture agreement announced in April 2014. The intention was to combine Fresenius Kabi's Russian and CIS business with the partners' subsidiary CJSC Binnopharm. Changing political and regulatory circumstances in the region have made the closing of the joint venture more challenging than anticipated.

Fresenius Kabi entered the Russian market in 1994 and today provides infusion therapies, clinical nutrition and I.V. drugs. The company is committed to further grow its business in the region, and is exploring other potential options to cooperate with Binnopharm.

Fresenius is a global health care group, providing products and services for dialysis, hospital and outpatient medical care. In 2013, Group sales were €20.3 billion. On September 30, 2014, the Fresenius Group had 214,401 employees worldwide.

For more information visit the Company's website at www.fresenius.com.

This release contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Fresenius does not undertake any responsibility to update the forward-looking statements in this release.

Fresenius SE & Co. KGaA
Registered Office: Bad Homburg, Germany
Commercial Register: Amtsgericht Bad Homburg, HRB 11852
Chairman of the Supervisory Board: Dr. Gerd Krick

General Partner: Fresenius Management SE
Registered Office: Bad Homburg, Germany
Commercial Register: Amtsgericht Bad Homburg, HRB 11673
Management Board: Dr. Ulf M. Schneider (Chairman), Dr. Francesco De Meo, Dr. Jürgen Götz, Mats Henriksson, Rice Powell, Stephan Sturm, Dr. Ernst Wastler
Chairman of the Supervisory Board: Dr. Gerd Krick

Acquisition will widen the presence in the Hospitalist industry

Fresenius Medical Care AG & Co. KGaA (the "company" or "Fresenius Medical Care"; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS) announced today that Sound Physicians Inc. (Sound) has entered into an agreement to acquire Cogent Healthcare (Cogent) with more than 650 providers, who offer hospitalist and intensivist services to more than 80 hospitals throughout the United States. Combined, the expanded Sound Physicians organization will now serve over 180 hospitals in 35 states with more than 2,250 providers including physicians and advanced care practitioners. Fresenius Medical Care is the majority shareholder in Sound.

The company expects Cogent to generate approximately $250 million in revenue in 2015 and expects the investment to be accretive to earnings within 18-24 months after closing including the transaction/integration cost and potential synergies. The investment will be financed through available cash. The parties involved agreed not to disclose the financial terms of the acquisition.

"Sound Physicians is a critical partner in fulfilling our mission to improve the lives of every patient every day," said Rice Powell, Fresenius Medical Care Chief Executive Officer. "With this acquisition, Sound Physicians continues to augment our network of dialysis, cardiac and vascular care centers, renal pharmacy and full service and specialty laboratories to help us better address the full spectrum of our patients' health care needs. Going forward, Sound will be better positioned than ever to deliver the highest quality care to patients in the acute setting and reduce costs for its hospital partners."

"Combining Cogent Healthcare's reach with Sound Physicians' patient-centered approach, web-based workflow platform and experienced physician leadership together clearly positions Sound Physicians as the partner of choice for the acute episode of care and the practice of choice for providers," noted Rob Bessler, MD, Chief Executive Officer of Sound Physicians. "By coming together, we believe we can continue to advance innovation and improvement in the acute episode of care throughout the U.S."

The parties expect the transaction, which remains subject to regulatory clearance, to close this quarter.

About Fresenius Medical Care
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 2.5 million individuals worldwide. Through its network of 3,349 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatments for 283,135 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.

For more information about Fresenius Medical Care, visit the company's website at www.fmc-ag.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.

Fresenius Medical Care AG & Co. KGaA (the "company" or "Fresenius Medical Care"; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world's largest provider of dialysis products and services, has upsized its syndicated credit facility by 850 million U.S. dollar equivalent to a total amount of approximately 4.4 billion U.S. dollar equivalent, with pricing and other conditions more favorable to the company. The amended credit facility consists of revolving facilities and term loans, both U.S. dollar and euro denominated. The final maturity date was extended by two years to October 30, 2019. The facilities will be used to refinance existing debt, for working capital needs and general corporate purposes.

Fresenius Medical Care also successfully extended its $800 million accounts receivable facility with improved terms. The new facility will now mature November 24, 2017.

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 2.5 million individuals worldwide. Through its network of 3,349 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatments for 283,135 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.

For more information about Fresenius Medical Care, visit the company's website at www.fmc-ag.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.

Fresenius Kabi has been informed by the U.S. Food and Drug Administration that its pharmaceutical manufacturing facility in Grand Island, N.Y., has achieved the upgraded status of voluntary action indicated (VAI) following an October 2014 inspection. The status change is an improvement from the "official action indicated" status the facility had been operating under.

The new VAI classification permits FDA approval of new Fresenius Kabi products at the plant.

The status change reflects the improvements that have been made at the plant since receiving a warning letter in 2012. Fresenius Kabi remains committed to continuous improvement and compliance in its operations worldwide.

Fresenius is a global health care group, providing products and services for dialysis, hospital and outpatient medical care. In 2013, Group sales were €20.3 billion. On September 30, 2014, the Fresenius Group had 214,401 employees worldwide.

For more information visit the Company's website at www.fresenius.com.

This release contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Fresenius does not undertake any responsibility to update the forward-looking statements in this release.

Fresenius SE & Co. KGaA
Registered Office: Bad Homburg, Germany
Commercial Register: Amtsgericht Bad Homburg, HRB 11852
Chairman of the Supervisory Board: Dr. Gerd Krick

General Partner: Fresenius Management SE
Registered Office: Bad Homburg, Germany
Commercial Register: Amtsgericht Bad Homburg, HRB 11673
Management Board: Dr. Ulf M. Schneider (Chairman), Dr. Francesco De Meo, Dr. Jürgen Götz,
Mats Henriksson, Rice Powell, Stephan Sturm, Dr. Ernst Wastler
Chairman of the Supervisory Board: Dr. Gerd Krick

Fresenius has launched a refinancing of the revolving facilities and the term loan A tranches (aggregate volume approx. €3 bn) under its 2013 senior credit agreement. The maturity will be extended by 2 years to June 28, 2020. Given the improved credit profile and favorable bank market conditions, Fresenius' proposal also includes reduced credit margins.

S&P has upgraded the corporate credit rating of Fresenius from BB+ to BBB- with a stable outlook. The upgrade reflects Fresenius' enhanced stability – derived from overall critical mass coupled with sound diversification and leading positions in non-cyclical markets – rather than a shift in its financial policy.

Moody's Investors Service has raised the outlook on the Ba1 rating for Fresenius to stable.

Fresenius continues to view itself as an active consolidator in its markets and will continue to focus on financing acquisitions primarily with debt. Minimizing the weighted average cost of capital continues to be a key aim of Fresenius' financial policy. This requires the conscious and prudent use of debt in the Group's capital structure.

Fresenius is a global health care group, providing products and services for dialysis, hospital and outpatient medical care. In 2013, Group sales were €20.3 billion.

For more information visit the Company's website at www.fresenius.com.

This release contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Fresenius does not undertake any responsibility to update the forward-looking statements in this release.

Fresenius SE & Co. KGaA
Registered Office: Bad Homburg, Germany
Commercial Register: Amtsgericht Bad Homburg, HRB 11852
Chairman of the Supervisory Board: Dr. Gerd Krick

General Partner: Fresenius Management SE
Registered Office: Bad Homburg, Germany
Commercial Register: Amtsgericht Bad Homburg, HRB 11673
Management Board: Dr. Ulf M. Schneider (Chairman), Dr. Francesco De Meo, Dr. Jürgen Götz,
Mats Henriksson, Rice Powell, Stephan Sturm, Dr. Ernst Wastler
Chairman of the Supervisory Board: Dr. Gerd Krick

Fresenius Medical Care AG & Co. KGaA (the "company" or "Fresenius Medical Care"; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world's largest provider of dialysis products and services, today announced that Standard & Poor's has upgraded the corporate credit rating of Fresenius Medical Care from BB+ to BBB- with a stable outlook. The company's financial policy remains unchanged. Fresenius Medical Care will continue to focus on the execution of the long-term strategy introduced in early 2014.

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 2.5 million individuals worldwide. Through its network of 3,349 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatments for 283,135 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.

For more information visit the Company's website at www.fmc-ag.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.

Birgit Grund, Senior Vice President of Investor Relations at Fresenius for the past 24 years, plans to leave the Company on March 31, 2015, to pursue a new opportunity. Ulf Mark Schneider, CEO of Fresenius, commented: "Her significant contributions and outstanding commitment were instrumental in building the trust and credibility Fresenius enjoys within the financial community. We wish her all the best in her future endeavors."

Markus Georgi will succeed Birgit Grund as Senior Vice President of Investor Relations, effective April 1, 2015. He has worked in Investor Relations for more than 15 years and will join Fresenius from Celesio AG, where he is currently Director Investor Relations. Prior to joining Celesio in 2011, Georgi was Head of Investor Relations at CompuGroup Medical AG and before that Vice President Investor Relations & Head of Equity Capital Markets at Deutsche Telekom AG. Ulf Mark Schneider, CEO of Fresenius, said: "We are pleased to have Markus Georgi assume this important position at Fresenius. His extensive experience in Investor Relations makes him well qualified for this role. We wish him every success with his new duties."

Note to the media: Images of Birgit Grund and Markus Georgi can be requested at pr-fre@fresenius.com.

Fresenius is a global health care group, providing products and services for dialysis, hospital and outpatient medical care. In 2013, Group sales were €20.3 billion. On September 30, 2014, the Fresenius Group had 214,401 employees worldwide.

For more information visit the Company's website at www.fresenius.com.

Follow us on Facebook and Twitter: www.facebook.com/fresenius.group and www.twitter.com/fresenius.

This release contains forward-looking statements that are subject to various risks and uncertainties. Future results could differ materially from those described in these forward-looking statements due to certain factors, e.g. changes in business, economic and competitive conditions, regulatory reforms, results of clinical trials, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Fresenius does not undertake any responsibility to update the forward-looking statements in this release.

Fresenius SE & Co. KGaA
Registered Office: Bad Homburg, Germany
Commercial Register: Amtsgericht Bad Homburg, HRB 11852
Chairman of the Supervisory Board: Dr. Gerd Krick

General Partner: Fresenius Management SE
Registered Office: Bad Homburg, Germany
Commercial Register: Amtsgericht Bad Homburg, HRB 11673
Management Board: Dr. Ulf M. Schneider (Chairman), Dr. Francesco De Meo, Dr. Jürgen Götz,
Mats Henriksson, Rice Powell, Stephan Sturm, Dr. Ernst Wastler
Chairman of the Supervisory Board: Dr. Gerd Krick

Subscribe to