FSNUY Fresenius SE and Company KGaA (PK)

By Sarah Sloat

German health care company Fresenius SE lowered its 2022 outlook late Wednesday after Fresenius Medical Care AG was hit by U.S. labor shortages and inflation in the second quarter and cut its guidance.

Fresenius now expects sales growth in a low-to-mid single-digit percentage range, compared with a previous forecast for the mid-single digit range. Net income should fall in a low-to-mid single-digit percentage range, compared with a previous forecast for an increase in a low-single-digit percentage range.

Dialysis care company Fresenius Medical Care, in which Fresenius holds about 32%, cut its 2022 outlook and withdrew its 2025 targets.

In the second quarter, revenue grew about 1% and after-tax income excluding extraordinary items fell about 7%.

In 2022, net income is expected to fall in a high-teens percentage range, compared with previous guidance for growth in a low-to-mid single-digit percentage range. Fresenius Medical Care expects revenue to grow at the low end of the low-to-mid single-digit percentage range previously forecast.

The company expects most challenges to be temporary but due to the labor situation and inflationary environment and the substantially reduced earnings base it no longer expects to be able to reach its 2025 targets.

Write to Sarah Sloat at sarah.sloat@wsj.com

(END) Dow Jones Newswires

July 28, 2022 02:18 ET (06:18 GMT)

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