Full Press Release Details
| Investor News | Fresenius Medical Care AG & Co. KGaA Investor Relations 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 |
Care Reports Excellent Fourth Quarter
and Full Year 2007 Results and Provides Strong Outlook for 2008
The Company clearly exceeded its
financial targets, achieved record earnings and proposes its 11th consecutive
annual dividend increase.
| Summary Fourth Quarter 2007: | |||||||
| Net revenue | $ | 2,569 million | + 9 | % | |||
| Operating income (EBIT) | $ | 428 million | + 21 | % | |||
| Net income | $ | 197 million | + 30 | % | |||
| Earnings per share | $ | 0.67 | + 29 | % |
| Summary Full Year 2007: | ||||||||
| Net revenue | $ | 9,720 million | + 14 | % | ||||
| Operating income (EBIT) | $ | 1,580 million | + 20 | % | ||||
| Net income | $ | 717 million | + 34 | % | ||||
| Earnings per share | $ | 2.43 | + 33 | % | ||||
| Dividend Proposal | Ordinary Share | 0.54 | + 15 | % | ||||
| Preference Share | 0.56 | + 14 | % |
Bad Homburg, Germany
Fresenius Medical Care AG & Co. KGaA ( the Company ), the
world s largest provider of Dialysis Products and Services, today announced its
results for the fourth quarter and full year of 2007.
Fourth Quarter 2007:
for the fourth quarter 2007 increased by 9% to $2,569 million (6% at
constant currency) compared to the fourth quarter 2006. Organic revenue growth
worldwide was 4%. Dialysis Services revenue grew by 6% to $1,856 million
(4% at constant currency) in the fourth quarter of 2007. Dialysis Product
revenue increased by 18% to $713 million (10% at constant currency) in the
North America revenue increased by 3% to
$1,706 million. Dialysis Services revenue grew by 1% to
$1,526 million. Excluding effects of the divestiture of the perfusion
business, Dialysis Service revenue increased by 3%. Average revenue per
treatment for the U.S. clinics decreased
by 1% to $325 in the fourth quarter 2007
compared to $328 for the same quarter in 2006. At the same time, due to
extremely good cost containment, the comparable costs per treatment decreased
by 2% to $266 per treatment also contributing to a further margin expansion of
70 basis points in North America. Dialysis Product revenue increased by 17% to $180 million
again well above market led by strong sales of our 2008K hemodialysis machines,
peritoneal dialysis products and the phosphate binding drug PhosLo.
International revenue was $863 million, an increase
of 24% (12% at constant currency) compared to the fourth quarter of 2006.
Organic revenue growth of the international segment was 7%. Dialysis Services
revenue reached $331 million, an increase of 35% (22% at constant currency).
Dialysis Product revenue rose by 18% to $533 million (7% at constant currency),
led by strong peritoneal dialysis products and dialyzers.
Operating income (EBIT) increased by 21% to $428 million compared to $354 million in the fourth
quarter 2006. Operating income for the fourth quarter 2006 includes costs of
$25 million related to restructuring costs and in-process R&D.
Excluding these effects, operating income for the fourth quarter 2007 increased
by 13%. The operating margin improved from 16.1% in the fourth quarter 2006
excluding the one-time costs to 16.6% in 2007.
| Operating income (EBIT) before one-time items Three months ended December 31, (in US-$ million) | 2007 | 2006 | % Change | |||||||
| Operating income (EBIT) | 428 | 354 | + 21 | % | ||||||
| Cost of restructuring and in-process R&D | 25 | |||||||||
| Operating income (EBIT) before one-time items | 428 | 379 | + 13 | % |
America, the operating margin increased from 17.1% (excluding the effects of
one-time items) by 70 basis points to 17.8% due to the new PhosLo business,
higher product sales and decreased operating costs per treatment. In the
International segment, the operating
margin also increased by 70 basis points to 18.4% mainly due to higher growth
in the emerging markets and increased efficiencies.
Net interest expense for the fourth quarter 2007 was $90 million
compared to $96 million in the same quarter of 2006. This positive
development was mainly attributable to lower average interest rates and a lower
was $135 million for the fourth quarter of 2007 compared to
$99 million in the fourth quarter of 2006, reflecting effective tax rates of 39.8% and 38.5%, respectively.
for the fourth quarter 2007 was $197 million, an increase of 30%. Net
income increased by 16% when compared to the fourth quarter 2006 excluding the
effects of one-time items in 2006.
| Net income before one-time items Three months ended December 31, (in US-$ million) | 2007 | 2006 | % Change | |||||||
| Net income | 197 | 152 | + 30 | % | ||||||
| Cost of restructuring and in-process R&D | 18 | |||||||||
| Net income before one-time items | 197 | 170 | + 16 | % |
(EPS) for the fourth quarter of 2007 rose
by 29% to $0.67 per ordinary share compared to $0.52 for the fourth quarter of
2006. The weighted average number of shares outstanding for the fourth quarter
of 2007 was approximately 296.3 million shares compared to
295.0 million shares for the fourth quarter of 2006. The increase in
shares outstanding resulted from stock option exercises in 2007.
quarter of 2007, the Company generated $309 million in cash from operations, representing approximately 12% of revenue,
clearly ahead of our
target. The extremely strong cash flow generation was primarily supported by
higher earnings and a stable working capital.
$184 million was spent for capital
expenditures, net of
disposals. Free Cash Flow before acquisitions was $125 million compared to $266 million in
the fourth quarter of 2006 on a reported basis. A total of $118 million in
cash was used for acquisitions.
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 results for the full year 2007 are not
directly comparable with the results of the full year 2006.
Revenue and Earnings
Net revenue for 2007
was $9,720 million, up 14% from 2006. At constant currency, net revenue rose by
12%. Organic growth was 6% in 2007.
Operating income (EBIT) increased by 20% to $1,580 million compared to $1,318 million in 2006.
Operating income for the full year 2006 includes cost of $37 million as a
result of restructuring, the transformation of the Company s legal form and
in-process R&D, and a gain from the clinic divestitures of $40 million.
these items, operating income for 2007 increased also by 20%. This performance
resulted in an operating margin of 16.3% compared to 15.5% for the year 2006.
| Operating income (EBIT) before one-time items Twelve months ended December 31, (in US-$ million) | 2007 | 2006 | % Change | |||||||
| Operating income (EBIT) | 1,580 | 1,318 | + 20 | % | ||||||
| Cost of restructuring, transformation and in-process R&D | 37 | |||||||||
| Gain from divestiture | (40 | ) | ||||||||
| Operating income (EBIT) before one-time items | 1,580 | 1,315 | + 20 | % |
Net interest expense
for the full year 2007 was $371 million
compared to $351 million in 2006. The increase was mainly the result of
additional interest expense partially offset by the write-off in 2006 of
deferred financing costs related to the 2003 senior credit facility of $15
million, both in conjunction with the financing of the RCG acquisition.
was $466 million for the full year compared to $413 million in 2006,
reflecting tax rates of 38.5% and
42.8%, respectively. The tax rate for 2006 was impacted by tax payments in the
U.S mainly related to the gain on the divestiture of dialysis clinics in the
U.S. Excluding this impact, the effective tax rate for 2006 was at 39.8%.
year 2007, net income was $717