Fresenius 3Q Net Profit Rose; Expects to Cut Up to 5,000 Jobs at Dialysis Business

   By Cristina Roca 
 

Fresenius SE & Co. said Tuesday that its net profit and sales for the third quarter rose, and outlined plans to restructure its Fresenius Medical Care AG & Co. business, including cutting up to 5,000 full-time jobs.

The German healthcare company posted a quarterly net profit of 435 million euros ($504.8 million), up 2% on year. Sales climbed 5% to EUR9.32 billion.

Fresenius outlined plans to reorganize its dialysis business, Fresenius Medical Care, around two segments--care enablement and care delivery--and reduce its annual cost base by EUR500 million by the end of 2025 as part of the unit's 2025 strategy. As part of the plan, FMC expects to cut up to 5,000 jobs, it said.

The restructuring will result in one-time costs of EUR450 million-EUR500 million, most of which should be booked by the end of 2023, the company said.

For the third quarter, the business reported a 1% revenue increase but a 23% drop in net profit as the Delta variant of the coronavirus increased patient mortality during the third quarter. As a result of this, the division's revenue and net profit for the full year are expected at the lower end of its previously guided range.

Fresenius said Covid-19 is expected to hit its fourth-quarter results, though excess patient mortality should improve.

"Additionally, Fresenius expects headwinds from cost inflation including rising commodity and shipping prices, increasing energy costs, as well as supply-chain constraints in 4Q 2021," the company said.

The company said it now expects sales growth at constant currency to grow by mid-single digits. It previously saw sales growing by low-to-mid single digits.

Write to Cristina Roca at [e-mail]

(END) Dow Jones Newswires

November 02, 2021 03:40 ET (07:40 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.