Fresenius Medical more confident on earnings outlook as cost inflation eases

FRANKFURT (Reuters) -Dialysis group Fresenius Medical Care on Wednesday said a possible earnings decline this year would likely not be as pronounced as previously feared, helped by cost cuts and as labour shortages and cost inflation slowly eased.

The German company said in a statement it now expects 2023 operating income to remain flat or slip by up to a "low-single digit" percentage.

It had previously projected earnings to remain flat or decline by up to a high-single digit percentage rate.

"We have seen a stabilization of the labor market and of the inflationary environment. Our measures to increase productivity, supported by the targeted clinic closures, are driving a positive development," said CEO Helen Giza.

The group added that second-quarter adjusted operating income advanced 5% to 357 million euros ($392 million), falling short of the median analysts' estimate of 375 million posted on the company's website.

($1 = 0.9103 euros)

(Reporting by Ludwig Burger, Editing by Rachel More)

By Ludwig Burger and Patricia Weiss