search results for 
Logo

15. Inventories

As of December 31, inventories consisted of the following:

€ in millions 2011 2010
Raw materials and purchased components 385 350
Work in process 326 255
Finished goods 1,076 874
less reserves 70 68
Inventories, net 1,717 1,411

€ in millions 2011 2010
Raw materials and purchased components 385 350
Work in process 326 255
Finished goods 1,076 874
less reserves 70 68
Inventories, net 1,717 1,411

The companies of the Fresenius Group are obliged to purchase approximately €2,316 million of raw materials and purchased components under fixed terms, of which €700 million was committed at December 31, 2011 for 2012. The terms of these agreements run 1 to 14 years. Advance payments from customers of €236 million (2010: €170 million) have been offset against inventories.

Inventories as of December 31, 2011 and December 31, 2010 included approximately €37 million and approximately €25 million, respectively, of the product Erythropoietin (EPO), which is supplied by a single source supplier in the United States. Effective January 1, 2012, Fresenius Medical Care entered into a new three-year sourcing and supply agreement with its EPO supplier. Delays, stoppages, or interruptions in the supply of EPO could adversely affect the operating results of Fresenius Medical Care.

QUICKFINDER

History

Tools