Second quarter of 2009: Dräger increases order intake and net sales
(Thomson Reuters ONE) - Corporate news announcement processed and transmitted by Hugin AS.The issuer is solely responsible for the content of this announcement. ------------------------------------------------------------------------------------ * Currency effects and change in product mix impact earnings * R&D expenditure rises to 8.4 percent of net sales * Free cash flow improved * Net debt lowered * Turnaround program being implementedLübeck, Germany - Drägerwerk AG & Co. KGaA recorded a rise in orderintake in the second quarter of 2009, which almost made up for theweak level of orders in the first quarter. At EUR 484.2 million, theCompany exceeded the prior-year figure by 10.0 percent in the secondquarter, net of currency effects. Net sales of EUR 468.7 million inthe second quarter were also an improvement on the prior-year period(up 2.2 percent net of currency effects), as were net sales for theentire first half at EUR 893.9 million (up 3.0 percent net ofcurrency effects).Change in product mix impacts gross marginEarnings, on the other hand, continued to come under pressure due tocurrency effects and stiffer competition as well as a shift in theproduct mix. In the safety division, government orders largely offseta decline in industrial orders in terms of net sales. However, thelower level of profitability of these orders - mostly respiratoryprotection equipment for fire departments - impacted earnings. Themeasurement of construction contracts for deep-sea diving systemsalso pushed down earnings. In the medical division, the strongerdollar compared to the prior year and the disproportionate growth ininfrastructure projects and service business led to a lower grossmargin. Consequently, the Dräger Group's gross margin in the firsthalf of 2009 decreased from 47.0 percent in the prior year to43.8 percent.R&D expenditure rises to 8.4 percent of net salesThe planned high level of research and development costs, which roseto 8.4 percent of net sales (June 30, 2008: 7.4 percent) also had anegative impact on earnings. In addition, expenses of EUR 3.5 millionwere incurred in the second quarter for measures to improve earningsas part of the turnaround program.These effects reduced EBIT before non-recurring expenses by asubstantial 74.4 percent to EUR 15.1 million; net profit decreased by92.3 percent to EUR 1.6 million.Nevertheless, the Company succeeded in improving the net cash flowprovided by operating activities by EUR 7.5 million to EUR 39.8million in the first six months of 2009, thereby reducing netfinancial debt by 6.3 percent in comparison to June 30, 2008.Turnaround program being implemented"Our turnaround program for optimizing revenues, increasingefficiency, reducing costs and investing in future projects, whichwas initiated in June, will guide the Company back to its formerstrength", said Stefan Dräger, Executive Board Chairman of DrägerwerkVerwaltungs AG. The 400 individual measures will have a positiveeffect on earnings of EUR 100 million per year as of 2011. In thesecond half of 2009, we will continue to drive forward theimplementation of these measures so that a substantial portion willalready take effect in the second half", said Dräger.Outlook confirmedIn 2009, the turnaround program will cushion the negative effect onearnings resulting from the change in the product mix on the one handand the effects of the forecast lower net sales on the other. "Inspite of the difficult economic situation, we will maintain our highlevel of expenditure on research and development in order to investin our product portfolio, which promises strong growth and earningsfor the future", said Dräger. This is essential for the Company'spositive long-term development. For 2009, the Executive Boardanticipates that consolidated EBIT before non-recurring expenses willbe considerably lower than in the prior year and that net sales willbe around 5.0 percent lower.Key figures for the first half of 2009 (in EUR million)+-------------------------------------------------------------------+| | Q2 | Q2 | H1 | H1 | Change || | 2009 | 2008 | 2009 | 2008 | in percent ||----------------------+-------+-------+-------+-------+------------|| Order intake | 484.2 | 460.7 | 923.8 | 954.5 | -2.3% ||----------------------+-------+-------+-------+-------+------------|| Medical division | 310.2 | 303.0 | 605.4 | 623.0 | -2.8% ||----------------------+-------+-------+-------+-------+------------|| Safety division | 179.8 | 163.9 | 339.9 | 343.2 | -1.0% ||----------------------+-------+-------+-------+-------+------------|| | | | | | ||----------------------+-------+-------+-------+-------+------------|| Net sales | 468.7 | 457.8 | 893.9 | 863.5 | +3.5% ||----------------------+-------+-------+-------+-------+------------|| Medical division | 309.8 | 287.1 | 578.1 | 551.2 | +4.9% ||----------------------+-------+-------+-------+-------+------------|| Safety division | 165.7 | 176.8 | 328.7 | 324.4 | +1.3% ||----------------------+-------+-------+-------+-------+------------|| | | | | | ||----------------------+-------+-------+-------+-------+------------|| EBIT[1] | | | | | || before non-recurring | | | | | || expenses | 8.6 | 41.4 | 15.1 | 58.9 | -74.4% ||----------------------+-------+-------+-------+-------+------------|| Medical division | 8.4 | 23.9 | 11.1 | 36.0 | -69.2% ||----------------------+-------+-------+-------+-------+------------|| Safety division | 7.5 | 20.0 | 18.0 | 29.5 | -39,0% ||----------------------+-------+-------+-------+-------+------------|| | | | | | ||----------------------+-------+-------+-------+-------+------------|| EBIT margin | 1.8% | 9.0% | 1.7% | 6.8% | ||----------------------+-------+-------+-------+-------+------------|| | | | | | ||----------------------+-------+-------+-------+-------+------------|| Net profit | 1.5 | 18.2 | 1.6 | 20.7 | -92.3% ||----------------------+-------+-------+-------+-------+------------|| Earnings per | | | | | || preferred share | | | 0.01 | 1.21 | || (EUR) | 0.04 | 1.16 | | | |+-------------------------------------------------------------------+[1] EBIT = Earnings before net interest result and income taxesDisclaimerThis press release contains forward-looking statements regarding thefuture development of the Dräger Group. These forward-lookingstatements are based on the current expectations, presumptions, andforecasts of the Executive Board as well as the information availableto it to date and have been prepared to the best of its knowledge andbelief. No guarantee or liability for the occurrence of the futuredevelopments and results specified can be assumed in respect of suchforward-looking statements. Rather, the future developments andresults are dependent on a number of factors. They entail risks anduncertainties beyond our control and are based on assumptions whichcould prove to be incorrect. Notwithstanding any legal requirementsto adjust forecasts, we assume no obligation to update theforward-looking statements contained in this report. You will findall key financial dates on our website at www.draeger.com underInvestor Relations/Financial Calendar.ContactCorporate Communications:Burkard DilligTel. +49 451 882-2185burkard.dillig(at)draeger.comInvestor Relations:Vanina HerbstTel. +49 451 882-2685vanina.herbst(at)draeger.comDrägerwerk AG & Co. KGaAMoislinger Allee 53-5523542 Lübeck, Germanywww.draeger.comThe press release can be downloaded from the following link:http://hugin.info/135701/R/1332998/315828.pdf --- End of Message ---Drägerwerk AG & Co. KGaAMoislinger Allee 53-55 Lübeck GermanyWKN: 555063; ISIN: DE0005550636; Index: TecDAX, CDAX, HDAX, MIDCAP, Prime All Share, TECH All Share;Listed: Prime Standard in Frankfurter Wertpapierbörse, Freiverkehr in Börse Stuttgart, Regulierter Markt in Bayerische Börse München, Regulierter Markt in Börse Berlin, Regulierter Markt in Börse Düsseldorf, Regulierter Markt in Frankfurter Wertpapierbörse, Regulierter Markt in Hanseatische Wertpapierbörse zu Hamburg, Regulierter Markt in Niedersächsische Börse zu Hannover;
Datum: 06.08.2009 - 07:30 Uhr
Sprache: Deutsch
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