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Fresenius Medical cuts outlook on slower recovery, rising costs By Reuters

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© Reuters. FILE PHOTO: Headquarters of Fresenius in Bad Homburg near Frankfurt, Germany, February 27, 2018. REUTERS/Ralph Orlowski

BERLIN (Reuters) – Kidney dialysis provider Fresenius Medical Care (NYSE:) (FMC (NYSE:)) on Sunday lowered its forecast for 2022, expecting lower net profit this year, driven by the rising labor costs and a slower-than-expected recovery in activity in North America.

The company now expects net profit to decline this year in the teen to mid-twenties percentage range, down from its previous forecast of a decline in the teen percentage. He still expects revenue to grow at a low single-digit percentage rate.

FMC said net profit fell 16% in the third quarter to 230 million euros ($229.15 million) while operating profit fell 7% to 472 million euros during the trimester.

“As expected, inflationary developments persisted and weighed on our earnings,” FMC Chief Financial Officer Helen Giza said in a statement.

The company is facing staff shortages, high turnover rates and higher costs in the United States, she said, adding that she expects her business in North America North improve in 2023.

It said the decline in its US patient numbers due to COVID-19 mortality was in line with expectations, adding that some 24,600 patients have died since the pandemic began.

Revenue rose 15% in the third quarter to 5.1 billion euros while basic earnings per share (EPS) fell 16% to 0.78 euros, above analysts’ expectations at Refinitiv d a jump of 1.4% in income and 0.74 EPS.

($1 = 1.0037 euros)

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