Full Press Release Details
| Fresenius Medical Care AG & Co. KGaA | ||
| Investor Relations | ||
| Investor News | Else-Kr ner-Str. 1 | |
| D-61352 Bad Homburg | ||
| Contact: | ||
| Oliver Maier | ||
| Phone: | + 49 6172 609 2601 | |
| Fax: | + 49 6172 609 2301 | |
| E-mail: | ir@fmc-ag.com | |
| North America: | ||
| Terry L. Morris | ||
| Phone: | + 1 800 948 2538 | |
| Fax: | + 1 615 345 5605 | |
| E-mail: | ir@fmc-ag.com | |
| Internet: www.fmc-ag.com | ||
| April 30, 2009 |
Fresenius Medical Care
Reports Strong Start For 2009 and Confirms Outlook for Full Year
| Summary First Quarter 2009: | |||||
| Net revenue | $ | 2,560 million | + 2% | ||
| Operating income (EBIT) | $ | 396 million | + 2% | ||
| Net income attributable to Fresenius Medical Care AG & Co. KGaA | $ | 198 million | + 7% | ||
| Earnings per share | $ | 0.67 | + 6% |
Bad Homburg, Germany Fresenius Medical Care AG & Co. KGaA
( the Company or FMC AG & Co. KGaA ), the world s largest provider of
dialysis products and services, today announced its results for the first
Net revenue for the first quarter of 2009 increased by
2% to $2,560 million (8% at constant currency) compared to the first quarter of
2008. Organic revenue growth worldwide was 8%. Dialysis services revenue grew
by 4% to $1,923 million (8% at constant currency) in the first quarter of 2009.
Dialysis product revenue decreased by 5% to $637 million (an increase of 8% at
constant currency) in the same period.
North America revenue increased by 6% to $1,774 million.
Dialysis services revenue grew by 5% to $1,577 million. Average revenue per
treatment for the U.S. clinics was $338 in the first quarter of 2009 compared
to $326 for the first quarter of 2008 and $335 for the fourth quarter of 2008.
This development was based on an increase in underlying reimbursement rates and
stable EPO utilization. Dialysis product revenue increased by 14% to $197
million and was led by sales of the newly licensed intravenous iron products
and strong sales of the 2008K hemodialysis machines.
International revenue was $786 million, a decrease of 7%
(an increase of 11% at constant currency) compared to the first quarter of
2008. Dialysis services revenue reached $346 million, a decrease of 1% (an
increase of 18% at constant currency). Dialysis product revenue decreased by
11% to $440 million. Sales grew by 6% based on constant currencies, led by
strong pharmaceutical sales and sales of products for acute care treatments.
increased by 2% to $396 million compared to $389 million in the first quarter
of 2008. Operating margin remained unchanged at 15.5% in the first quarter of
2009 compared to the first quarter of 2008.
In North America, the operating margin decreased by 110 basis points
from 16.4% to 15.3% in the first quarter of 2009 primarily due to higher
personnel expenses, increased pharmaceutical costs and the impact of one less
dialysis day in the first quarter of 2009 compared to the first quarter of
2008. These effects were partially offset by increased dialysis treatment rates
and sales of the newly licensed intravenous iron products.
In the International segment, the operating margin increased by 170
basis points to 18.7% due to reduced manufacturing costs and operating
Net interest expense for the first quarter of 2009 was $74
million compared to $83 million in the same quarter of 2008. This positive
development was mainly attributable to lower short term interest rates.
Income tax expense was $116 million for the first quarter of
2009 nearly equal to the first quarter of 2008, reflecting effective tax rates
of 35.9% and 37.3%, respectively.
Net income attributable to FMC AG & Co. KGaA for
the first quarter of 2009 was $198 million, an increase of 7%.
(EPS)for the first quarter
of 2009 rose by 6% to $0.67 per ordinary share compared to $0.63 for the first
quarter of 2008. The weighted average number of shares outstanding for the
first quarter of 2009 was approximately 297.7 million shares compared to 296.6
million shares for the first quarter of 2008. The increase in shares
outstanding resulted from stock option exercises in 2008 and in the first
In the first quarter of 2009, the Company generated $156 million in cash from operations,
approximately 6% of revenue. The cash flow generation benefited from a decrease
in Days Sales Outstanding (DSO) in the first quarter of 2009 compared to the
fourth quarter of 2008 of two days but was negatively affected by higher other
working capital requirements.
A total of $111 million was spent for capital
expenditures, net of disposals. Free
Cash Flow before acquisitions was $45 million compared to $39
million in the first quarter of 2008. A total of $36 million in cash was used for acquisitions net of divestitures. Free Cash Flow
acquisitions and divestitures was $9 million compared to $6 million
in the first quarter of last year.
attachments for a complete overview on the first quarter of 2009 and the
reconciliation of non-GAAP financial measures included in this release to the
most comparable GAAP financial measures.
Patients Clinics Treatments
As of March 31, 2009, Fresenius Medical Care treated 187,476 patients
worldwide, which represents a 6% increase in patients compared to the same
period last year. North America provided dialysis treatments for 127,121
patients, an increase of 4%. Including 31 clinics managed by Fresenius Medical
Care North America, the number of patients in North America was 128,763. The
International segment served 60,355 patients, an increase of 11% over last
As of March 31, 2009, the Company operated a total of 2,448 clinics
worldwide. This is comprised of 1,714 clinics in North America (1,745 including
managed clinics), an increase of 5%, and 734 clinics in the International
segment, an increase of 12%.
Fresenius Medical Care delivered approximately 7.04 million dialysis
treatments worldwide during the first quarter of 2009. This represents an
increase of 5% over the same quarter last year. North America accounted for
4.74 million treatments, an increase of 2%, and the International segment
delivered 2.30 million treatments, an increase of 11%.
As of March 31, 2009, Fresenius Medical Care had 65,670 employees
(full-time equivalents) worldwide compared to 64,666 employees at the end of
2008. The increase of approximately 1,000 employees is primarily due to overall
growth in the Company s business.
The ratio of debt to Earnings before Interest, Taxes and Amortization
(EBITDA) decreased from 2.82 at the end of the first quarter of 2008 to 2.64 at
the end of the first quarter of 2009. At the end of 2008, the debt/EBITDA ratio
Refinancing of Notes
On April 27, 2009, the Company issued euro denominated notes totaling
200 million in anticipation of retiring the existing 200 million Euro Notes
issued in 2005 which are due in July 2009. The newly issued Euro Notes consist
of 4 tranches having terms of 3.5 and 5.5 years with floating and fixed
interest rate tranches. The initial average interest rate is 6.95%.
There have been no rating changes in the first quarter of 2009,
Standard & Poor s Rating Services rates the Company s corporate credit as
BB with a negative outlook.
Moody s continued to rate the Company s corporate credit as Ba1 with
Fitch rates the Company s corporate credit as BB with a negative