Medicare cuts hit dialysis provider

(Bloomberg) – Cuts in U.S. government health spending are hurting profits at Fresenius Medical Care A.G., the world’s biggest dialysis provider.

Rice Powell, the chief executive officer, said he is setting a net income target of just $1 billion to $1.05 billion for 2014.

The new target compares with a securities analyst consensus estimate of about $1.2 billion.

“Every day last year I felt like my back was up against the wall because we had guidance that was very difficult,” Powell said in a phone interview. “This year we tried to create what I would call adequate guidance.”