Comparison with US government makes FMC even more optimistic
Dialysis provider Fresenius Medical Care (FMC) is even more optimistic about the current financial year just a few weeks after raising its most recent forecast. This is because a settlement with the US government is expected to have a positive effect on the operating result of around 175 million euros, as the company surprisingly announced on Tuesday. As a result, the operating profit adjusted for special and currency effects will increase by 12 to 14 percent compared to the previous year. The other parts of the forecast remain unchanged.
According to FMC, the legal dispute with the US government had revolved around a dialysis program for members and retirees of the US armed forces and their dependents. In 2019, Fresenius Medical Care filed a lawsuit against the United States in the dispute over compensation. The settlement that has now been reached puts an end to the legal dispute.
FMC had only revised its targets at the beginning of the month and announced a low single-digit percentage increase in operating profit excluding special and exchange rate effects. Previously, the management had assumed a figure at the previous year's level at best. In 2022, the operating result had amounted to 1.54 billion euros.
FMC is in the midst of upheaval. The blood purification specialist is groaning under high costs and declining sales, and many dialysis patients died of coronavirus during the pandemic. The management led by Group CEO Helen Giza is therefore taking countermeasures with a far-reaching cost-cutting program, including several thousand job cuts and the sale of parts of the company. Many clinics have already been closed.
Fresenius Medical Care (FMC) acknowledged that the resolution of the legal dispute with the US government would significantly boost its financial performance, as the settlement is projected to enhance the operating result by approximately 175 million euros. Furthermore, the company highlighted that the positive impact on its profits would result in an increase of 12 to 14 percent in the adjusted operating profit, compared to the previous year.
Source: www.dpa.com
