Fresenius SE & Co. KGaA

Earnings Release • Aug 3, 2006

News Details

Ad-hoc | 3 August 2006 07:38

Fresenius AG: First half of 2006 – Firmly on growth track

Ad hoc announcement transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— First half of 2006: Firmly on growth track Excellent operating performance in all segments Full-year sales and earnings forecast raised Group sales increased by 37 % to € 5,078 million (H1 2005: € 3,702 million). Excellent organic growth contributed 9 % to revenue growth. Acquisitions, in particular the first-time consolidation of Renal Care Group and HELIOS Kliniken in the income statement, contributed 25 %. Currency translation effects added 3 % to sales growth. Group EBIT increased by 50 % at actual rates and by 46 % in constant currency to € 681 million (H1 2005: € 453 million). The growth was driven by the successful operating performance of all business segments as well as the first-time consolidation of Renal Care Group and HELIOS Kliniken. EBIT includes a gain of € 32 million from the divestitures of dialysis clinics in the USA. The sale was a condition of the US Federal Trade Commission for the approval of the Renal Care Group acquisition. EBIT also includes a total of € 11 million one-time expenses and expenses related to the stock option accounting change. Group net income grew by 39 % at actual rates and by 36 % in constant currency to € 140 million (H1 2005: € 101 million). This result includes one-time expenses of € 19 million, primarily for the refinancing of debt as well as for expenses related to the stock option accounting change and the after-tax loss on the divestitures of dialysis clinics in the USA. Earnings per ordinary share rose to € 2.75 (H1 2005: € 2.46) while earnings per preference share rose to € 2.77 (H1 2005: € 2.48). This is an increase of 12 % for both share classes (9 % in constant currency). The average number of shares grew to 50,852,320 mainly due to the share issue in December 2005. Given the Company’s strong performance in the first half, Fresenius raises its full-year 2006 sales and earnings outlook. Group sales are now expected to increase by approximately 35 % in constant currency to about € 10.7 billion. Net income is projected to grow by about 40 % in constant currency. The net income guidance already includes an amount of approximately € 27 million (after tax) associated with expected one-time expenses as well as expenses related to the stock option accounting change. Previously, the Company had expected net income growth to exceed 30 %. Earnings per share are now projected to increase by approximately 15 % in constant currency. Previously, earnings per share growth of around 10 % had been projected. (Financial statements according to US-GAAP) The Management Board Bad Homburg v.d.H., August 3, 2006 (c)DGAP 03.08.2006 ————————————————————————— Language: English Issuer: Fresenius AG Else-Kröner-Straße 1 61352 Bad Homburg v.d.H. Deutschland Phone: +49 (0)6172 608-2485 Fax: +49 (0)6172 608-2488 E-mail: ir-fre@fresenius.de WWW: www.fresenius.de ISIN: DE0005785638, DE0005785604 WKN: 578563, 578560 Indices: MDAX Listed: Amtlicher Markt in Frankfurt (General Standard), Düsseldorf, München; Freiverkehr in Berlin-Bremen, Hamburg, Stuttgart End of News DGAP News-Service —————————————————————————