* FMC sees 2014 net profit of $1-1.05 bln
* Reuters poll avg for 2014 net profit was $1.19 bln
* CEO says facing “challenging” environment
* Fresenius 2013 adj net profit meets forecast
FRANKFURT, Feb 25 (Reuters) - Fresenius Medical Care forecast its net profit would shrink further this year after posting its first decline in 12 years for 2013 amid cuts to healthcare budgets in the United States, its most important market.
The U.S. federal agency that sets reimbursement rates for Medicare said in November it would spread a 9.4 percent cut, initially proposed to take effect in 2014, over the next three to four years.
“Looking ahead we are faced with a challenging environment, in particular with structural changes due to growing pressure on reimbursement systems,” FMC Chief Executive Rice Powell said in a statement on Tuesday.
Medicare, a U.S. government healthcare programme for elderly and disabled people, accounts for about 30 percent of revenues at FMC, which makes dialysis machines and operates more than a third of the dialysis treatment centres in the United States.
FMC, the world’s largest dialysis provider, said its 2014 net profit would be between $1 billion and $1.05 billion, down from $1.11 billion last year and below analysts’ consensus forecast of $1.19 billion in a Reuters poll.
It said its outlook did not include potential savings of up to $60 million from a cost-cutting programme it launched last year.
German diversified healthcare group Fresenius SE. which controls FMC, said its 2013 adjusted net profit rose 12 percent to 1.05 billion euros ($1.4 billion), in line with analyst estimates.