Nov. 4 (Bloomberg) -- Fresenius Medical Care AG, the world's biggest provider of kidney dialysis, said third-quarter profit climbed 14 percent as it sold more products and blood-cleansing services.

Net income climbed to $206 million, or 69 cents a share, from $181 million, or 61 cents, the Bad Homburg, Germany-based company said today. This fell short of the $209 million median estimate of three analysts surveyed by Bloomberg News.

Fresenius Medical increased sales in the U.S., its largest market, as the average revenue per treatment rose by $6 as a result of higher reimbursement from private insurers. The German company added 6 percent more patients, saying it now cleanses the blood of 181,937 people, usually several times a week. International sales gained as the company opened new clinics and treated 10 percent more patients outside the U.S.

``In past quarters, we've seen dialysis revenue rise by $1, and of course an amount of $6 pushes sales,'' said Karl-Heinz Scheunemann, an analyst at Landesbank Baden-Wuerttemberg. ``Overall, Medical Care results were within our expectations.''

Parent company Fresenius SE reported a loss of 59 million euros ($74.5 million), from 103 million euros a year earlier, because of a writedown of 175 million euros related to the July purchase of APP Pharmaceuticals Inc. Fresenius raised its sales outlook for the full year.

The German company also operates Fresenius Kabi, which sells infusion therapies and clinical nutrition, private hospital operator Helios and the Vamed services unit.

APP Takeover

Fresenius Medical closed unchanged at 34.60 euros in Frankfurt trading. Fresenius preferred shares fell 26 cents, or 0.5 percent, to 48.40 euros.

Fresenius Chief Executive Officer Ulf Schneider bought APP for as much as $4.6 billion to enter the U.S. cancer and bleeding medicines market, which is growing at 8 percent a year. APP has more than 100 products that are given through injections and intravenous drips in clinics, including copies of Pfizer Inc.'s Camptosar to treat colon and rectum cancer and its antibiotic Zithromax as well as Novartis AG's Sandostatin drug to treat acromegaly, a bone disease.

Schneider said the company continues to be interested in privatizing hospitals, given the current financial situation. ``We don't have a set budget, but we have said we want to add 150 million euros in hospital sales annually,'' Schneider said in a Bloomberg Television interview today.

Fresenius Medical Care's U.S. rival DaVita Inc., the second- largest U.S. operator of kidney dialysis centers, yesterday said third-quarter profit fell from a year earlier when the company had gains from insurance settlements and the sale of investment securities. Revenue rose to $1.4 billion from $1.32 billion a year earlier.

Peter Grauer, the chairman of Bloomberg News parent Bloomberg LP, is a DaVita director.

To contact the reporter on this story: Eva von Schaper in Munich at evonschaper@bloomberg.net.

Last Updated: November 4, 2008 11:56 EST