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Sales and earnings by business segment

In 2014, we expect sales and earnings development in our business segments as shown below:

FINANCIAL TARGETS BY BUSINESS SEGMENT


Targets 2014Fiscal year 2013
Fresenius Medical Care
Sales~ US$15.2 bnUS$14.610 bn
Net income1US$1.0 bn – US$1.05 bnUS$1.110 bn
Fresenius Kabi
Sales growth (organic)3% – 7%€4,996 m
EBIT margin16% – 18%18.5%
Fresenius Helios2
Sales growth (organic)3% – 5%€3,393 m
EBIT€390 m – €410 m€390 m
Fresenius Vamed
Sales growth (organic)5% – 10%€1,020 m
EBIT growth5% – 10%€55 m

Targets 2014Fiscal year 2013
Fresenius Medical Care
Sales~ US$15.2 bnUS$14.610 bn
Net income1US$1.0 bn – US$1.05 bnUS$1.110 bn
Fresenius Kabi
Sales growth (organic)3% – 7%€4,996 m
EBIT margin16% – 18%18.5%
Fresenius Helios2
Sales growth (organic)3% – 5%€3,393 m
EBIT€390 m – €410 m€390 m
Fresenius Vamed
Sales growth (organic)5% – 10%€1,020 m
EBIT growth5% – 10%€55 m

The number of dialysis patients worldwide should rise by about 6% again in 2014, leading to continued growth in demand for dialysis products and a higher number of treatments. For 2014, Fresenius Medical Care expects sales of approximately US$15.2 billion, EBIT of approximately US$2.2 billion, and net income attributable to the shareholders of Fresenius Medical Care AG & Co. KGaA of US$1.0 to US$1.05 billion. Performance in 2014 will be impacted by lower reimbursement rates for Medicare dialysis patients in the United States. 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 US$60 million generated from this program are not included in the outlook for 2014.

Fresenius Kabi expects organic sales growth between 3% and 7% for 2014. In addition, the business segment is forecasting an EBIT margin in a range between 16% and 18%. These ranges primarily reflect substantial uncertainties regarding the IV drug shortage situation in the U.S. market as well as full-year effects from the restrictions on the use of our blood volume substitutes and prior-year price cuts in China. The outlook for Fresenius Kabi does not include integration costs for Fenwal (€40 to €50 million pre-tax and €30 to €40 million after tax). These costs will be reported in the Group Corporate / Other segment.

Fresenius Helios expects to continue its excellent performance. 2014 will be significantly influenced by the first-time consolidation of the hospitals and outpatient facilities acquired from Rhön-Klinikum AG. For 2014, Fresenius Helios projects organic sales growth of 3% to 5%. EBIT (excluding the acquired hospitals) is expected to increase to €390 to €410 million. The guidance considers the sale of the clinics Borna and Zwenkau. The outlook for Fresenius Helios does not include integration costs for the acquired hospitals. Total integration costs for the newly acquired hospitals are projected to be approximately €80 million pre-tax and €65 million after tax (thereof vast majority in 2014). These costs will be reported in the Group Corporate / Other segment.

Given an excellent order backlog of €1,139 million in its project business and long-term agreements in its service business, Fresenius Vamed has an excellent base for further growth. In 2014, Fresenius Vamed expects to achieve organic sales growth of 5% to 10% and EBIT growth of 5% to 10%.

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