“Given its current expectations for 2018 and 2019, Fresenius now believes its ambitious group targets for 2020 will not be met,” Fresenius said.
Overall earnings next year are now expected to be flat on mid-single-digit sales growth, compared with prior guidance for earnings growth of 8.3% to 12.6% on sales growth of 7.1% to 10.3%, the company said.
Separately listed Fresenius Medical Care also lowered its expectations, predicting flat earnings on “solid” sales growth. Net income for this year is forecast at €1.35 billion to €1.37 billion on sales of €15.85 billion to €16.05 billion on a constant-currency basis.
“With the pending acquisition of NxStage Medical (NSDQ:NXTM), the corresponding build-out of our home dialysis services infrastructure in the United States as well as investments in future growth markets in the products as well as the services business such as China, we have an investment year ahead of us,” FMC CEO Rice Powell said in prepared remarks. “We would like to share as an early indication that 2019 will have a clear focus on preparing the company for future sustainable, profitable growth. For 2019, we currently broadly assume solid comparable(1) revenue growth and the comparable(1) net income to be around the level of FY 2018.”
FMS shares were down -9.6% to $35.48 apiece today in mid-day trading.