Drägerwerk AG & Co. KGaA / Key word(s): Profit Warning 13.10.2015 20:42 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Ad hoc reports in accordance with Sec. 15 of the German Securities Trading Act Drägerwerk AG & Co. KGaA: One-off effects impact result. Dräger revises 2015 annual forecast. Efficiency program intensified. Based on preliminary figures, Drägerwerk AG & Co. KGaA concluded the third quarter with a negative result partly due to one-off effects. The previous annual forecast is now unlikely to be reached. In terms of the full-year forecast, Dräger now anticipates net sales growth of 1.0 to 3.0 percent net of currency effects and an EBIT margin of between 2.5 and 4.5 percent. Compared to the prior-year quarter, order intake rose by 3.5 percent in the third quarter. Dräger also recorded a 2.1 percent rise in net sales to EUR 604.0 million. Net of currency effects, order intake increased by 1.2 percent and net sales rose by 0.2 percent. In the medical division, order intake was up by 1.8 percent (-0.9 percent net of currency effects), whereas net sales increased by 2.5 percent (0.2 percent net of currency effects). Orders in the safety division climbed by 6.9 percent (5.2 percent net of currency effects), while net sales rose by 1.4 percent (0.0 percent net of currency effects). Group EBIT totaled approximately EUR -23 million (prior-year quarter: EUR 47.2 million), equating to an EBIT margin of -3.7 percent (prior-year quarter: 8.0 percent). As a result, net sales in the first nine months of the year increased by 7.1 percent year on year (2.3 percent net of currency effects). Total EBIT stood at roughly EUR 0 million (9 months 2014: EUR 81.2 million). The EBIT margin fell from 4.9 percent in the prior-year period to 0.0 percent. Business development in the Asia Pacific region, particularly in China, has suffered a further downturn. Business in the region Americas also fell short of expectations. In the safety division, business has not yet improved in the raw materials sector, especially in areas particularly dependent on the price of oil. In addition, one-off effects such as write-downs on receivables and inventories and provisions for quality costs had a negative impact of roughly EUR 20 million on the third-quarter result. The gross margin for the first nine months of the year stood at 44.5 percent (9 months 2014: 46.5 percent). Functional costs rose by 12.4 percent in the first nine months of 2015 compared to the same period in the prior year, equating to a rise of 7.4 percent net of currency effects. The recent significant devaluation of some emerging economies' currencies also had a negative impact on the result. New full-year forecast for 2015: Based on business development so far, net sales growth net of currency effects is expected to be between 1.0 percent and 3.0 percent (previously: 2.0 percent to 5.0 percent net of currency effects). The gross margin will not match the previous year's level. Dräger expects its full-year EBIT margin to stand at between 2.5 and 4.5 percent (previously 5.0 to 7.0 percent) and does not anticipate any significant changes in relevant exchange rates in this context. In addition, this forecast does not include any potential restructuring expenses that may arise within the scope of the "Fit for Growth" efficiency program. Dräger reviews medium-term forecast and intensifies efficiency program: As a result of the disappointing business development Dräger is intensifying its "Fit for Growth" efficiency program to achieve the medium-term goals in terms of cutting administration and sales costs. The company expects an ongoing weak development in several growth markets outside of Europe that are important to Dräger and is therefore reviewing the medium-term forecast. Any potential adjustment of the forecast, as well as details on new efficiency measures, will be published together with the final business figures for the full-year 2015 at the latest. The final results for the first nine months of fiscal year 2015 will be published on November 5, 2015. Drägerwerk AG & Co. KGaA Moislinger Allee 53-55 23558 Lübeck, Germany www.draeger.com Investor Relations: Thomas Fischler Tel. +49 451 882-2685 thomas.fischler@draeger.com Corporate Communications: Melanie Kamann Tel. +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 Investor Relations / Financial Calendar at www.draeger.com for information on all important financial dates. 13.10.2015 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- 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: Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Hanover, Munich; Regulated Unofficial Market in Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------
DGAP-Adhoc: Drägerwerk AG & Co. KGaA: One-off effects impact result. Dräger revises 2015 annual forecast. Efficiency program intensified.
| Source: EQS Group AG