Nov. 3 (Bloomberg) -- Fresenius Medical Care AG, the world’s biggest provider of kidney dialysis, raised its forecast for the year after reporting a nine percent increase in third- quarter profit.

Net income advanced to $225 million, or 76 cents a share, from $206 million, or 69 cents, a year earlier, the Bad Homburg, Germany-based company said in a statement today. Fresenius Medical Care now expects net income of $865 million to $890 million for 2009, compared with a previous forecast of $850 million to $890 million.

Sales in North America, the German company’s largest market, rose by 10 percent to $1.95 billion, and the average revenue per treatment advanced to $348 in the third quarter from $344 in the second quarter, the company said. Fresenius Medical improved its profit margin compared with the second quarter by 50 basis points because of this increase in treatment revenue, cost management in the U.S. and a decrease in bad debt expenses.

“The improvement in profitability was quite important,” said Lisa Bedell Clive, a London-based analyst for Sanford C. Bernstein Ltd. “These results showed the company has a good level of cost control.”

Sales Gain

Total sales gained 6.5 percent to $2.89 billion. The German company now expects revenue of about $11.2 billion this year, compared with a previous goal of $11.1 billion. International sales were little changed at $939 million in the quarter.

The shares rose 65 euro cents, or 2 percent, to 33.39 euros at 10 a.m. in Frankfurt trading.

Parent company Fresenius SE reported an increase in third- quarter profit, adjusted to reflect mark-to-market accounting for exchangeable bonds and the acquisition of APP Pharmaceuticals, to 128 million euros ($189 million) from 112 million euros.

The health-care company, also based in Bad Homburg, operates private hospital operator Helios and the Vamed services unit; Fresenius Kabi, which sells infusion therapies and clinical nutrition; and a biotechnology unit.

To contact the reporter on this story: Naomi Kresge in Zurich at nkresge@bloomberg.net

Last Updated: November 3, 2009 04:27 EST