Fresenius Medical Care AG & Co. KGAA's profit for the fourth quarter of 2017 rose 6% year over year when adjusted for currency effects, while the company is targeting double-digit net income growth for 2018.
The German provider of dialysis services and kidney care products said fourth-quarter adjusted net income attributable to shareholders totaled €362 million, or €1.28 per share, compared with €363 million, or €1.19 per share, in the year-ago quarter.
The adjusted net income figure accounts for the impact from natural disaster costs in North America of €3 million, the unfavorable effects of the agreement with the U.S. Departments of Veterans Affairs and Justice of €1 million, a charge of €200 million related to U.S. Foreign Corrupt Practices Act investigations, as well as a benefit from U.S. tax reform of €236 million.
Revenue for the quarter was up 8.1% on a constant-currency basis to €4.43 billion from €4.42 billion in the corresponding quarter of 2016. The company said sales were crimped by foreign exchange rates.
Research and development costs for the quarter were €36 million, down from €39 million in the same period a year ago.
Adjusted net income attributable to shareholders for the full year was €1.20 billion, or €4.17 per share, compared with €1.14 billion, €3.74 per share, in 2016. Revenue for the year totaled €17.78 billion, up from €16.57 billion in 2016.
Fresenius Medical Care expects revenue growth of about 8% at constant currency for 2018, with growth in net income expected to be between 13% and 15% at constant currency levels including recurring benefits from the U.S. tax reform of €140 million to €160 million.
Based on the results for 2017, the company said it expects to propose a record dividend of €1.06 per share, representing a dividend increase of 10%, at the annual general meeting in May.
Fresenius SE & Co. KGaA owned 30.81% of Fresenius Medical Care as of June 30, 2017.