Dow Jones Newswires: Fresenius cuts guidance again amid macroeconomic pressures and struggling North American unit

by | Oct 31, 2022 | Stock Market

By Joshua Kirby Fresenius SE & Co. KGaA has again cut its guidance for the year, foreseeing a sharper fall in earnings as macroeconomic pressures and a struggling North America business at subsidiary Fresenius Medical Care & Co. KGaA weighed on third-quarter performance.

The German healthcare company now expects a fall of around 10% in group net profit in 2022 at constant currency, from previous guidance of a single-digit decline. Sales growth is still expected in the low- to mid-single digits, Fresenius said Sunday. The lower guidance comes amid expected lower contributions from dialysis-care subsidiary FMC, where net profit is now expected to fall more steeply, in the percent range of the high teens to mid-20s. Delays to improvements in the North American healthcare services operations are weighing on earnings, as are general macroeconomic pressures, FMC said. Revenue is still expected to grow moderately for the year. In the third quarter, Fresenius’s net profit fell 19% at constant currency, excluding recent acquisitions, to 371 million euros ($369.7 million) amid higher labor costs at FMC’s U.S. business, as well as general cost inflation, the company said. Earnings before interest and taxes and before special items fell 17% to EUR949 million, with the operating margi …

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