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Dialysis care provider Fresenius Medical Care AG & Co. KGaA (FMS) said Tuesday it still expects higher profits and sales this year, despite missing first-quarter profit estimates due to adverse currency effects.

"Strong organic growth is expected to continue and we also expect to strengthen our global presence through selective acquisitions, especially in the area of dialysis services," Chief Executive Officer Ben Lipps said in a statement.

Several analysts had expected the devaluation of the Venezuelan bolivar to reduce sales and earnings during the first quarter. They also typically view the first quarter as a seasonally weak one.

The market showed little reaction to the news and at 0800 GMT, shares in Fresenius Medical were trading up 0.5% or EUR0.21 at EUR41.30 while the overall DAX was up 0.3%.

Net profit for the quarter to end-March rose 7% to $211 million from $198 million a year earlier, below analyst estimates of $214 million.

Earnings before interest and taxes, or EBIT, for the first quarter grew 7% to $423 million, missing analysts' estimates of $430 million. The operating margin shrank to 14.7% from 15.5% during the same period a year ago. Cost-cutting and increased revenue per treatment boosted the North America margin but failed to offset the negative currency effect on international margins, the company said.

Sales rose 13% to $2.88 billion from $2.56 billion, topping analyst estimates of $2.84 billion. The company said its 2,580 clinics worldwide delivered more treatments to a greater number of patients during the quarter compared with a year ago.

Average revenue per treatment for the U.S. clinics--a figure closely watched by analysts--slipped slightly to $355 during the quarter from $357 in fourth quarter 2009. Year-over-year, the most recent figure rose from $338 due to higher reimbursement rates increased use of pharmaceuticals, Fresenius Medical Care said.

For 2010, Fresenius Medical Care still expects revenue of more than $12 billion and net income of between $950 million and $980 million.

Parent company Fresenius SE (FRE.XE) said adjusted net profit rose to EUR119 million from EUR110 million a year earlier, still below analyst estimates of EUR121 million on a slightly higher tax charge. Sales rose to EUR3.64 billion from EUR3.4 billion a year earlier, ahead of analyst expectations of EUR3.57 billion.

Margins were hit by negative currency effects at Fresenius Medical as well as delayed intravenous drug product launches and continued price competition in the U.S. market at the Kabi unit. Kabi's APP Pharmaceuticals Inc. saw its monopoly on sales of therapeutic blood-thinner Heparin end in September, when rival Hospira Inc. (HSP) received U.S. approval to sell six different quantities.

For 2010, Fresenius SE still expects adjusted net income growth of between 8% and 10% and sales growth of between 7% and 9%, both in constant currency. The company said net income should come in at the upper end of guidance.

At 0800 GMT, Fresenius SE shares were trading down 0.40% or EUR0.20 at EUR54.20.

Company Web site: http:/www.fresenius.com

-By Allison Connolly, Frankfurt Bureau; +49 69 29725513, allison.connolly@dowjones.com

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