Fresenius reports decrease in 2013 income, lowers outlook for next year

Fresenius Medical Care AG & Co. KGaA reported a rise in fourth quarter profits, but net income for the full year decreased for the first time in 12 years. The company has reported an outlook for 2014 that is less than its 2013 income.

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Net income for the fourth quarter of 2013 increased 36% to $349 million, compared to $257 million for the fourth quarter of 2012. Net revenue for the fourth quarter of 2013 increased 4% to $3,867 million (+5% at constant currency) compared to the fourth quarter of 2012.

Organic revenue growth worldwide was 3%. Dialysis services revenue grew 3% to $2,895 million (+4% at constant currency) and dialysis product revenue increased 8% to $972 million (+8% at constant currency).

Basic earnings per ordinary share (EPS) for the fourth quarter of 2013 was $1.16, an increase of 38% compared to the same quarter in 2012.

Full-year income falls
Net income for the full year 2013 decreased 6% to $1,110 million. Net revenue for the year increased 6% to $14,610 million (+6% at constant currencies) compared to the full year 2012.

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The company said it expects net income of $1.0 billion to $1.05 billion in 2014, and revenue to be around $15.2 billion.

“Every day last year I felt like my back was up against the wall because we had guidance that was very difficult,” Powell said in a phone interview with Bloomberg News. “This year we tried to create what I would call adequate guidance.”