* Targets lower end of $1.1-$1.15 bln net income range
* Reimbursement cuts expected to be announced end-Nov
* Parent Fresenius says adj Q3 net income up 9 pct
FRANKFURT, Nov 5 Fresenius Medical Care
, the world's largest dialysis provider, said it needed
a "very strong" fourth quarter to meet its full-year profit
forecast, hurt by cuts to healthcare budgets in the United
States, its most important market.
The company said on Tuesday it was aiming for a full-year
net income at the low end of its previous target range of
between $1.1 billion and $1.15 billion.
"There is no doubt that we need a very strong fourth quarter
to get there," Chief Executive Officer Rice Powell said in a
Analysts are on average expecting full-year net income of
A 2 percent reduction in U.S. federal spending under
automatic cuts known as sequestration kicked in earlier this
year, hurting healthcare providers.
More austerity measures are expected next year, which are
slated to be announced by the U.S. federal agency that sets
dialysis reimbursement rates on Nov 27 at the latest.
Lower reimbursement for dialysis providers by the Centers
for Medicare & Medicaid Services (CMS) will mainly reflect a
drop in the use of an expensive drug to treat anaemia, a common
side effect associated with dialysis.
FMC launched a cost-cutting programme at the beginning of
the year but it did not provide details on Tuesday.
Third-quarter net income edged 1.2 percent higher to $273
million, just above the $268 million predicted by analysts on
Pretax profit slipped 1.2 percent to $454 million, slightly
less than analysts' average estimate.
German diversified healthcare group Fresenius SE,
which controls FMC, reported better-than-expected quarterly
adjusted net income on Tuesday.
Net profit before one-off items gained 9 percent to 271
million euros ($366 million) helped by higher operating earnings
at its hospitals chain Helios.
Fresenius confirmed its outlook for 2013 adjusted net income
to increase by 11-14 percent, excluding the effect of currency