Fresenius Medical cuts outlook on slower recovery, rising costs
BERLIN (Reuters) -Kidney dialysis provider Fresenius Medical Care (FMC) on Sunday revised down its forecast for 2022, expecting net income to decline this year, dragged down by rising labour costs and a slower than expected recovery in North America business.
The company now expects net income to decline in the high-teens to mid-20s percentage range this year, down from its previous outlook of a high-teens percentage drop. It still expects revenue to grow at a low single digit percentage rate.
FMC said net income dropped 16% in third quarter to 230 million euros ($229.15 million) while operating income fell by 7% to 472 million euros in the quarter.
“As expected, inflationary developments persisted and weighed on our earnings,” FMC finance chief Helen Giza said in a statement.
The company has been facing staff shortages, high turnover rates and higher costs in the united states, it said, adding that it expects its North America business to improve in 2023.
It said the decline in its U.S. patients numbers due to COVID-19 mortality was within expectations, adding that some 24,600 patients have died since the start of the pandemic.
Revenue rose by 15% in the third quarter to 5.1 billion euros while basic earnings per share (EPS) dropped 16% to 0.78 euros, above Refinitiv’s analysts expectations of a 1.4% revenue jump and 0.74 EPS.
($1 = 1.0037 euros)
(Reporting by Riham Alkousaa;Editing by Alison Williams and Angus MacSwan)
