DGAP-News: Fresenius Medical Care AG & Co. KGaA: reports strong operating figures and confirms guidance for full year 2014

DGAP-News: Fresenius Medical Care AG & Co. KGaA: reports strong operating 
figures and confirms guidance for full year 2014

DGAP-News: Fresenius Medical Care AG & Co. KGaA / Key word(s): Half
Year Results
Fresenius Medical Care AG & Co. KGaA: reports strong operating figures
and confirms guidance for full year 2014

31.07.2014 / 07:22

---------------------------------------------------------------------

July 31, 2014

INVESTOR NEWS

Fresenius Medical Care reports strong operating results for the second
quarter 2014 and confirms guidance for full year 2014

  
  - Second quarter shows accelerated growth

  - Improvement of underlying operating performance driven by both the
    North American as well as International segment

  - Implemented further initiatives in the second quarter to expand the
    care coordination activities

  - Company remains on track to achieve full year guidance

Second quarter 2014 key figures:
Net revenue      $3,835 million   +6%
Operating income (EBIT)    $556 million    +2%
Net income1      $234 million    -11%
Net income adjusted2    $252 million    -4%
Basic earnings per share    $0.77     -10%
Adjusted earnings per share2)   $0.83     -3%

First half 2014 key figures:
Net revenue      $7,398 million   +5%
Operating income (EBIT)    $1,001 million   -4%
Net income1      $439 million    -10%
Net income adjusted2    $457 million    -6%
Basic earnings per share    $1.46     -9%
Adjusted earnings per share2   $1.52     -5%

Rice Powell, chief executive officer of Fresenius Medical Care stated: "The
second quarter showed sequentially enhanced revenue growth and improved
strong operating performance. We expect the organic growth to continue in
the second half of the year and are confident to meet our guidance for the
full year as well as our cost savings target of up to $60 million before
tax for 2014. With our recent acquisitions of Sound Physicians and
MedSpring Urgent Care we made important steps in our strategy of expanding
our service network to achieve excellent patient care in a more coordinated
and integrated model."

________________________________
1)attributable to shareholders of Fresenius Medical Care AG & Co. KGaA
2) adjusted for an unfavorable tax impact of USD 18 million in the second
quarter of 2014

Second quarter 2014

Revenue

Net revenue for the second quarter of 2014 increased by 6% to $3,835
million (+7% at constant currency) compared to the second quarter of 2013.
Organic revenue growth worldwide was 5%. Dialysis services revenue grew by
7% to $2,949 million (+8% at constant currency) and dialysis product
revenue increased by 2% to $886 million (+1% at constant currency) compared
to the second quarter of 2013.

North America revenue for the second quarter of 2014 increased by 6% to
$2,521 million. Organic revenue growth was 4%. Dialysis services revenue
grew by 7% to $2,316 million with a same store treatment growth of 3.3%.
Dialysis product revenue decreased by 6% to $205 million.

International revenue increased by 6% to $1,297 million (+7% at constant
currency). Organic revenue growth was 5%. Dialysis services revenue
increased by 8% to $633 million (+12% at constant currency). Dialysis
product revenue increased by 3% to $664 million (+3% at constant currency).

Earnings

Operating income (EBIT) for the second quarter of 2014 increased by 2% to
$556 million compared to $544 million in the second quarter of 2013.
Operating income for North America increased by 3% in the second quarter of
2014 to $401 million compared to $391 million in the second quarter of
2013. In the International segment, operating income for the second quarter
of 2014 increased by 11% to $243 million compared to $218 million in the
second quarter of 2013.

Net interest expense for the second quarter of 2014 was $98 million,
compared to $103 million in the second quarter of 2013.

Income tax expense was $177 million for the second quarter of 2014 which
translates into an effective tax rate of 38.7%. This compares to income tax
expense of $144 million and a tax rate of 32.6% for the second quarter of
2013. The tax rate in the second quarter of 2014 was influenced by a
special tax impact which resulted in an expense of $18 million in the
second quarter of 2014. On an adjusted basis the tax rate for the second
quarter of 2014 was 34.8%. For the full year, the company expects a tax
rate of around 34%.

Net income attributable to shareholders of Fresenius Medical Care AG & Co.
KGaA for the second quarter of 2014 was $234 million, a decrease of 11%
compared to the corresponding number of $263 million for the second quarter
of 2013. On an adjusted basis net income attributable to shareholders of
Fresenius Medical Care AG & Co. KGaA for the second quarter of 2014 was
$252 million.

Basic earnings per share (EPS) for the second quarter of 2014 was $0.77, a
decrease of 10% compared to the corresponding number for the second quarter
of 2013. On an adjusted basis EPS for the second quarter of 2014 was $0.83.
The weighted average number of shares outstanding for the second quarter of
2014 was approximately 301.8 million shares, compared to 306.3 million
shares for the second quarter of 2013. The decrease in shares outstanding
resulted from last year's share buy-back program, partially offset by stock
option exercises in the past twelve months.

Cash flow 

In the second quarter of 2014, the company generated $449 million in net
cash provided by operating activities, a decrease of 14% compared to the
corresponding figure of last year and representing 12% of revenue.

A total of $218 million was spent for capital expenditures, net of
disposals. Free cash flow was $231 million compared to $352 million in the
second quarter of 2013.

A total of $297 million in cash was spent for acquisitions and investments,
net of divestitures. Free cash flow after investing activities was -$66
million, compared to $339 million in the second quarter of 2013.

First half 2014

Revenue and earnings

Net revenue for the first half of 2014 increased by 5% to $7,398 million
(+6% at constant currency) compared to the first half of 2013. Organic
revenue growth worldwide was 4%.

Operating income (EBIT) for the first half of 2014 decreased by 4% to
$1,001 million compared to $1,038 million in the first half of 2013.

Net interest expense for the first half of 2014 was $195 million compared
to $207 million in the first half of 2013.

Income tax expense for the first half of 2014 was $278 million which
translates into an effective tax rate of 34.5%. This compares to income tax
expense of $273 million and a tax rate of 32.8% for the first half of 2013.
On an adjusted basis the tax rate for the first half of 2014 was 32.3%. For
the full year, the company expects a tax rate of around 34%.

For the first half of 2014, net income attributable to shareholders of
Fresenius Medical Care AG & Co. KGaA was $439 million, down by 10% from the
corresponding number of $488 million for the first half of 2013. On an
adjusted basis net income attributable to shareholders of Fresenius Medical
Care AG&Co. KGaA for the first half of 2014 was $457 million.

In the first half of 2014 basic earnings per share (EPS) was $1.46, a
decrease of 9% compared to the corresponding number for the first half of
2013. On an adjusted basis EPS for the first half of 2014 was $1.52. The
weighted average number of shares outstanding during the first half of 2014
was approximately 301.6 million shares.

Cash flow 

In the first half of 2014, the company generated $562 million in net cash
provided by operating activities compared to $841 million for the same
period in 2013, representing 8% of revenue.

A total of $415 million was spent for capital expenditures, net of
disposals. Free cash flow for the first half of 2014 was $147 million
compared to $522 million in the first half of 2013.

A total of $432 million in cash was spent for acquisitions and investments,
net of divestitures. Free cash flow after investing activities was -$285
million, compared to $438 million in the first half of 2013.

Employees 

As of June 30, 2014, Fresenius Medical Care had 94,401 employees (full-time
equivalents) worldwide, compared to 87,944 employees at the end of June
2013. This increase of more than 6,400 employees was attributable to our
continued organic growth as well as to acquisitions.

Balance sheet structure 

The company's total assets were $24,145 million (Dec. 31, 2013: $23,120
million), an increase of 4%. Current assets increased by 8% to $6,805
million (Dec. 31, 2013: $6,287 million). Non-current assets were $17,340
million (Dec. 31, 2013: $16,833 million), an increase of 3%. Total equity
increased by 2% to $9,650 million (Dec. 31, 2013: $9,485 million). The
equity ratio was 40% as compared to 41% at the end of 2013. Total debt was
$9,139 million (Dec. 31, 2013: $8,417 million). As of June 30, 2014, the
debt/EBITDA ratio was 3.1 (Dec. 31, 2013: 2.8).

Please refer to the attachments for a complete overview of the results for
the second quarter and first half of 2014 and the reconciliation of
non-GAAP financial measures included in this release to the most comparable
GAAP financial measures.

Strategic investments in Care Coordination

Fresenius Medical Care has entered into an agreement to invest
approximately $600 million in Sound Inpatient Physicians Inc. to become
majority shareholder in a network of more than 1,000 physician partners
providing care in over 100 hospitals and post-acute care centers across the
United States. The transaction of Sound Inpatient Physicians Inc. has been
closed in July 2014.

Fresenius Medical Care also acquired MedSpring Urgent Care Centers, with
operations in Illinois and Texas. MedSpring's 14 urgent care centers
provide high-quality primary care and customer service.

Thereby the company executes on the strategy disclosed earlier this year to
invest in care coordination around dialysis. The investment clearly
advances the commitment to address the full spectrum of care for
chronically ill patients.

Outlook

The company expects revenue to be at around $15.2 billion in 2014,
translating into a growth rate of around 4%. This outlook excludes revenue
of about $500 million from acquisitions.

Net income attributable to shareholders of Fresenius Medical Care AG & Co.
KGaA is expected to be unchanged between $1.0 billion and $1.05 billion in
2014. The company initiated a global efficiency program designed to enhance
the company's performance over a multi-year period. Potential cost savings
before income taxes of up to $60 million generated from this program are
not included in the outlook for 2014.

For 2014, the company expects to spend around $900 million on capital
expenditures. Reflecting mainly the latest acquisitions the company now
expects an acquisition spending of around $1.0 billion for fiscal year 2014
(previously $400 million). As a consequence the debt/EBITDA ratio is
expected to be around 3.0 by the end of 2014.

 Conference call

Fresenius Medical Care will hold a conference call to discuss the results
of the second quarter 2014 on Thursday, July 31, 2014, at 3.30 p.m. CEDT/
9.30 a.m. EDT. The company invites investors to follow the live webcast of
the call at the company's website www.fmc-ag.com in the "Investor
Relations" section. A replay will be available shortly after the call.

Fresenius Medical Care is the world's largest integrated provider of
products and services for individuals undergoing dialysis because of
chronic kidney failure, a condition that affects more than 2.5 million
individuals worldwide. Through its network of 3,335 dialysis clinics in
North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius
Medical Care provides dialysis treatments for 280,942 patients around the
globe. Fresenius Medical Care is also the world's leading provider of
dialysis products such as hemodialysis machines, dialyzers and related
disposable products.

For more information about Fresenius Medical Care, visit the company's
website at www.fmc-ag.com.

Disclaimer
This release contains forward-looking statements that are subject to
various risks and uncertainties. Actual results could differ materially
from those described in these forward-looking statements due to certain
factors, including changes in business, economic and competitive
conditions, regulatory reforms, foreign exchange rate fluctuations,
uncertainties in litigation or investigative proceedings, and the
availability of financing. These and other risks and uncertainties are
detailed in Fresenius Medical Care AG & Co. KGaA's reports filed with the
U.S. Securities and Exchange Commission. Fresenius Medical Care AG & Co.
KGaA does not undertake any responsibility to update the forward-looking
statements in this release.
 

CONTACT

Fresenius Medical Care AG & Co. KGaA
Investor Relations
61352 Bad Homburg v. d. H.
Germany
www.fmc-ag.com

Oliver Maier
Head of Investor Relations & 
Corporate Communications
Tel. +49 6172 609 2601
Fax +49 6172 609 2301
email: ir@fmc-ag.com

Published by
Fresenius Medical Care AG & Co. KGaA
Investor Relations

Annual reports, interim reports and further
information on the company is also available on our website.
Please visit us at www.fmc-ag.com

For printed material, please contact Investor Relations.



---------------------------------------------------------------------

31.07.2014 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

---------------------------------------------------------------------


Language:    English                                                
Company:     Fresenius Medical Care AG & Co. KGaA                   
             Else-Kröner-Straße 1                                   
             61352 Bad Homburg                                      
             Germany                                                
Phone:       +49 (0) 6172- 609 2525                                 
Fax:         +49 (0) 6172- 609 2301                                 
E-mail:      ir@fmc-ag.com                                          
Internet:    www.fmc-ag.de                                          
ISIN:        DE0005785802, DE0005785836,                            
WKN:         578580, 578583                                         
Indices:     DAX                                                    
Listed:      Regulierter Markt in Frankfurt (Prime Standard);       
             Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,  
             München, Stuttgart; Terminbörse EUREX; NYSE            
 
 
End of News    DGAP News-Service  
---------------------------------------------------------------------  
280121 31.07.2014                                                      
 
Press spacebar to pause and continue. Press esc to stop.