Fresenius and FMC’s dialysis subsidiary – lower targets | Free press

The health group and the clinic have been suffering from the effects of the pandemic for some time. The bad news doesn’t stop there. Now there is a problem in North America.

Bad Homburg.

Fresenius health group expects to underperform due to problems at the dialysis subsidiary Fresenius Medical Care (FMC). FMC is suffering from an increasing staff shortage in the US, which is likely to create bottlenecks in healthcare services.

Both Dax companies announced that there will also be increases in wages and material costs, as well as disruptions in the supply chain. The medium-term goals are also no longer achievable.

“At the end of the first quarter, we expected a longer workforce shortage. However, we could not have foreseen such a sharp and sharp deterioration at that time, ”said FMC Vice President Helen Giza. Staff shortages, turnover and increasing dependence on temporary workers resulted in higher costs. The FMC has downgraded its outlook for this year and now expects wages to drop to a high percentage of teenagers. Sales growth is also expected to be weaker.

Fresenius expects a drop in profits

The parent company cannot escape the problems, said CEO Stephan Sturm. Fresenius is now expecting an increase in foreign exchange-adjusted sales this year in the low to mid single-digit percentage range. Fresenius sees a decline in earnings after currency adjustments and ahead of specials. Due to problems at FMC, Fresenius expects to no longer be able to meet its mid-term profit target. The FMC also withdrew its targets by 2025.

The new head of FMC, Carla Kriwet, is expected to start work earlier than planned on October 1. It comes from the manufacturer of household appliances BSH. CEO Rice Powell, who is retiring, will resign on September 30.

The stock market value plummeted

Fresenius, Germany’s largest hospital operator, has been struggling with slower growth and the effects of the corona crisis for a long time. The pandemic particularly affects FMC as many kidney patients die of corona infection. The stocks of both companies collapsed. Fresenius has lost around two-thirds of its stock market value over the past five years. There have been many earnings warnings. CEO Sturm has launched savings programs and is also open to restructuring the company.

Fresenius and FMC also released preliminary data for the second quarter. Fresenius sales increased by 8 percent year-on-year to a good 10 billion euros. The result was 5 percent lower at 450 million euros. In FMC, sales increased by 10 percent to 4.75 billion euros. Profits fell by a third. (dpa)

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