Fresenius Profits Boosted By Rapid Sales In First Half

German health care company Fresenius has announced a sharp rise in groupprofits for the first half of 1997, fuelled by acquisitions, significant gains in its core business and the setting-up of Fresenius Medical Care (Marketletters passim).

Turnover went up 159% to 3.5 billion Deutschemarks ($1.92 billion), while pre-tax profits rose 243.8% from the corresponding period last year to 337 million marks. The increases were due primarily to the stronger dollar and a 32% rise in pharmaceutical sales, to 537 million marks, bolstered by Fresenius' entry into the Italian infusion solutions market with the acquisition of Sifra.

While group profits and sales were up, analysts were disappointed with Fresenius Medical Care, the world's largest kidney dialysis product and service company, where sales grew by just 4.6%. Howard Capek and Lucy Olwell at Credit Suisse First Boston have lowered their 1997 earnings per share estimates from $2.13 to $1.44, reflecting adjustments to revenue and operating cash flow. The analysts say: "it is clear that FMC is significantly behind in creating the fully-integrated, rapidly-growing company that we had expected by now."