FMC gets new CEO after parent Fresenius flags business review

BERLIN, Dec 6 (Reuters) – German dialysis specialist Fresenius Medical Care (FMC) (FMEG.DE) said that Chief Executive Carla Kriwet would step down, marking the second leadership change in as many months as parent Fresenius SE (FREG.DE) has flagged a broader business review.

Kriwet, who had taken over as FMC’s CEO on Oct. 1, will be succeed by Helen Giza, who will continue to serve as FMC’s chief financial officer until further notice, the company said.

“In a fundamentally sound industry, Fresenius Medical Care now needs to sharpen its focus on the operational turnaround, further drive performance improvements and focus on its core,” said Michael Sen, who took over as CEO of FMC’s majority owner Fresenius SE in October.

Sen, who is also chairman of FMC and a former executive at Siemens (SIEGn.DE) and E.ON (EONGn.DE), has embarked on what he calls a “top-to-bottom” review of all business activities, with a focus on profitability.

The move comes amid speculation that activist investor Elliott, which according to a source has taken a stake in Fresenius, might push for a breakup of the diversified healthcare group.

Fresenius cut its 2022 guidance for a second time in October on persistent cost inflation and staff shortages that have also gripped its FMC subsidiary.

Fresenius added that it expected FMC’s net income to decline in the high-teens to mid-20s percentage range this year, a wider decline than its previous outlook of a high-teens percentage drop.

Shares in FMC were down 1.5% in early Frankfurt trade on what Credit Suisse called an “unexpected and negative” development.

Reporting by Kanjyik Ghosh in Bengaluru; writing by Christoph Steitz; editing by Miranda Murray and Jason Neely

Our Standards: The Thomson Reuters Trust Principles.

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