BAD HOMBURG (dpa-AFX) - Hospital operator and medical group Fresenius has made a surprisingly dynamic start to the new year. While first-quarter sales climbed 5 percent year-on-year to 10.2 billion euros, the Group suffered a drop in profits, Fresenius announced in Bad Homburg on Tuesday. However, operating income adjusted for special items declined by nine percent to 908 million euros, which was significantly better than analysts had expected.
Fresenius CEO Michal Sen, who has been in office since October, had prescribed a new strategy and stricter cost-cutting measures for the crisis-stricken group this spring. "Our productivity measures are taking effect," the manager now said, according to the statement. In the reporting period, savings of around 130 million euros were achieved. Initial successes in profitability were achieved at the Kabi subsidiary, which specializes in clinical nutrition and generic drugs, among other things.
On the other hand, the only subordinated subsidiary, the service company Vamed, and the dialysis specialist Fresenius Medical Care (FMC) again proved to be a burden. At the blood washing specialist, which has since been relegated to the MDax, operating profit slumped by a quarter and bottom-line profit fell by 45 percent to 86 million euros./tav/stk
