* Fresenius Q2 adj profit slightly above poll
* Shares jump on strong hospitals, U.S. dialysis units
* Raises sales outlook to include newly acquired business
(Recasts, adds shares, analyst quotes)
By Ludwig Burger
FRANKFURT, July 31 German healthcare group
Fresenius SE posted earnings that exceeded
expectations and showed solid performance for its hospitals and
kidney dialysis units, driving up its shares on Thursday.
Second-quarter adjusted net income edged up 0.4 percent to
259 million euros ($347 million), slightly above the 255 million
average estimate in a Reuters poll, as the company said it was
making progress integrating newly acquired facilities at its
Its shares jumped as much as 7 percent and were up 3.85
percent at 0955 GMT, poised for their biggest one-day gain in
eight months. Before that, they had been down 3.3 percent for
the year so far. It outperformed Germany's blue-chip index
, which was down about 1 percent.
"The share price jump was mainly due to strong results at
hospitals unit Helios and at FMC," said Commerzbank analyst
Its subsidiary Fresenius Medical Care (FMC), the
world's largest kidney dialysis provider, said second-quarter
net income, adjusted for a one-off tax burden, slipped 4 percent
to $252 million, in line with average expectations in a Reuters
Fresenius earlier this year wrapped up a 3 billion euro
purchase of hospitals and outpatient facilities from peer
Rhoen-Klinikum, resulting in a 48 percent jump in
quarterly operating profit at its hospitals unit, Helios.
"I would have expected a lower contribution from the Rhoen
hospitals," Commerzbank's Braun said.
Shares in separately listed unit FMC, which derives about
two-thirds of its revenue from North America, jumped 4.5
DZ Bank analyst Sven Kuerten described its quarterly results
as an encouraging sign "after several disappointments on the
operating line in the recent quarters".
The company, which operates more than a third of all
dialysis treatment centres in the United States, has been
grappling with healthcare budget cuts there.
The U.S. federal agency that sets the Medicare insurance
programme's reimbursements cut dialysis payment rates in
January, cancelling out routine annual mark-ups to adjust for
inflation, a move that will be repeated next year and possibly
Even so, "there's a certain transparency on pricing over the
next three years and investor confidence is returning,"
Commerzbank's Braun said.
Parent Fresenius raised its full-year outlook for sales to
grow by a currency-adjusted 14 to 16 percent, accounted for by
additional sales from acquired businesses. It had previously
predicted growth of 12 to 15 percent.
It continued to expect adjusted net income to grow by 2 to 5
percent at constant currencies.
($1 = 0.7465 Euros)
(Reporting by Ludwig Burger; Editing by Jonathan Gould and Jane