FMC eyes $300 mln lower annual costs from 2017

FRANKFURT, April 3 Thu Apr 3, 2014 2:17pm EDT

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FRANKFURT, April 3 (Reuters) - The world's largest dialysis company Fresenius Medical Care expects its ongoing cost cutting programme to yield annual efficiency gains of $300 million from 2017, it said on Thursday.

FMC launched a cost-cutting programme last year to cope with tougher conditions in the United States as part of which it could shut ten or more clinics and freeze hiring.

It previously predicted savings of up to $60 million this year and higher sums in 2015 and 2016.

FMC, which makes kidney dialysis machines and operates more than a third of dialysis treatment centres in the United States, in February forecast a shock fall in net profit for this year due to healthcare spending cuts in the U.S.

In slides presented to analysts in New York and posted on the company's website on Thursday, Chief Financial Officer Mike Brosnan also said he expected net income to grow in the high single digit percentage range per year from 2015 until 2020.

It earlier predicted sales to almost double to $28 billion by 2020, driven by growing patient numbers and as it aims to widen its services to medical fields related to kidney failure. (Reporting by Ludwig Burger and Frank Siebelt; Editing by Victoria Bryan)

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