Fresenius Medical Care AG & Co. KGaA (FMS) reported that its operating income or EBIT for the third quarter declined 13 percent to 527 million euros from 609 million euros in the year-ago period.
The company attributed the strong decrease in EBIT to the higher comparable base, which included the EBIT contribution from Sound of 20 million euros.
In addition, the increased provision for the FCPA related charge in the amount of 75 million euros and the contributions to the opposition to the ballot initiatives in the U.S. of 23 million euros, and 10 million euros favorable foreign currency translation effect related to the divestitures of Care Coordination activities affected the EBIT growth.
Third-quarter net income attributable to shareholders decreased 8 percent to 285 million euros from 309 million euros in the year-ago period. Basic earnings per share amounted to 0.93 euros, down from 1.01 euros in the year-ago period.
On a comparable basis, net income increased by 20 percent to 364 million euros, while earnings per share also rose 20 percent to 1.19 euros.
Revenue for the third quarter declined 6 percent to 4.06 billion euros from 4.34 billion euros, mainly driven by the higher comparable base which included the year-ago quarter revenue contribution from Sound Inpatient Physicians of 253 million euros as well as the impact from the IFRS 15 implementation of 117 million euros.
Excluding these two effects, revenue increased by 2 percent on a comparable basis, or 3 percent at constant currency, mainly driven by an increase in same market treatments in North America of 3 percent.
Looking ahead to fiscal 2018, Fresenius Medical Care affirmed its revised financial outlook announced on October 16.
The company now expects full-year revenue growth between 2 percent and 3 percent at constant currency. Net income on a comparable basis is expected to increase by 11 percent to 12 percent, and on an adjusted basis to increase by 2 percent to 3 percent, both at constant currency.
The outlook excludes the effect from the planned acquisition of NxStage Medical.
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