Drägerwerk AG & Co. KGaA / Key word(s): Profit Warning
19.07.2011 09:53
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Ad hoc report in accordance with Sec. 15 of the German Securities Trading
Act
Dräger increases 2011 earnings forecast
Drägerwerk AG & Co. KGaA expects earnings in financial year 2011 to be
better than previously forecasted. The Company now anticipates an EBIT
margin of 8.0 percent to 9.5 percent (previously: 7.5 percent to 8.5
percent) - based on the unchanged assumption of slight net sales growth.
The reason for this improved earnings outlook is the positive business
performance in the first six months of 2011. Group sales went up by about 2
percent (net of currency effects) and the EBIT margin reached around 9
percent, primarily due to the positive earnings trend in the safety
division. The safety division increased net sales by roughly 9 percent (net
of currency effects) and achieved an EBIT margin of approximately 12
percent in the first half of 2011 thanks to continuously strong demand in
the high-margin business with industrial customers and to overall high
capacity utilization. The performance of the medical division was also
aided by the favorable product mix, which exceeded expectations - even
though individual transactions in the previous year with above-average
margins (in connection with the H1N1 virus, for instance) were not repeated
and the division was unable to compensate for this. Combined with a slight
drop in net sales of around 1 percent (net of currency effects) in the
first six months of 2011, this lowered the EBIT margin to approximately 11
percent year-on-year.
In terms of the 2011 gross margin, Dräger expects that the positive effects
from the higher proportion of business with industrial customers and the
new products launched in the previous years by both divisions will offset
the negative effects on margins in the medical division. Dräger still plans
increases in product development investments and improvements to the
Group-wide IT infrastructure. The costs for the new marketing and sales
structure will not be recognized to the originally anticipated extent in
2011.
The published sales and margin estimates are based on the assumption of a
steady development in the markets relevant for Dräger and unchanged
exchange rates. In addition, the global situation has also become more
uncertain, making an exact forecast difficult. In the medium term, the
company plans to grow faster than the market and achieve a sustainable EBIT
margin of at least 10 percent.
Drägerwerk AG & Co. KGaA
Moislinger Allee 53-55
23558 Lübeck, Germany
www.draeger.com
Investor Relations:
Vanina Herbst
Phone: +49 451 882-2685
vanina.herbst@draeger.com
Corporate Communications:
Melanie Kamann
Phone: +49 451 882-3998
melanie.kamann@draeger.com
Disclaimer
This ad hoc report contains statements on the future development of Dräger
Group. These forward-looking statements are based on the current
expectations, presumptions, and forecasts of the Executive Board as well as
the information available to date. They were compiled to the best of the
company's knowledge. Dräger does not provide any warranty nor assume any
responsibility for the future developments and results described above.
These are dependent on a number of factors. They entail various risks and
contingencies outside of the company's influence and are based on
assumptions which could prove to be incorrect. Dräger does not assume any
responsibility for updating the forward-looking statements contained in
this report. This does not infringe any legal stipulations on the
adjustment of forecasts. Please go to Investoren / Finanzkalender at
www.draeger.com for information on all important financial dates.
Investor Relations:
Vanina Herbst
Phone: +49 451 882-2685
vanina.herbst@draeger.com
Corporate Communications:
Melanie Kamann
Phone: +49 451 882-3998
melanie.kamann@draeger.com
19.07.2011 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: Drägerwerk AG & Co. KGaA
Moislinger Allee 53-55
23542 Lübeck
Germany
Phone: +49 (0)451 882-0
Fax: +49 (0)451 882-2080
E-mail: info@draeger.com
Internet: www.draeger.com
ISIN: DE0005550602, DE 000 555 063 6, DE 000 555 065 1, DE 000 555 067
7, DE 000 555 071 9
WKN: 555060, 555063 Vorzüge, 555065 Genussschein A, 555067
Genussschein K, 555071 Genussschein D
Indices: TecDAX
Listed: Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime
Standard), Hamburg, Hannover, München; Freiverkehr in
Stuttgart
End of Announcement DGAP News-Service
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DGAP-Adhoc: Drägerwerk AG & Co. KGaA: Dräger increases 2011 earnings forecast
| Source: EQS Group AG