Drägerwerk AG & Co. KGaA / Key word(s): Profit Warning
13.10.2010 09:47
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 reports in accordance with section 15 of the German Securities
Trading Act (WpHG)
Dräger raises 2010 guidance
For fiscal year 2010, Dräger is expecting an increase in net sales in the
range of 10 percent (net sales 2009: EUR 1,911 billion). Net of currency
effects, growth would then be in the mid single-digit range. After the
company increased the forecast for the EBIT margin in June 2010 from
originally 5 to 6 percent up to 7 to 8 percent, Dräger is now expecting an
EBIT margin of 8 to 9 percent. As the cash settled option was replaced by
an equity settled option on August 30, 2010, the impact from the Siemens
cash option component has now been determined at EUR 11.8 million and is
now included in this new guidance. The option component will not impact
earnings in the future.
Now increased expectations for net sales and earnings are attributable to
unexpectedly strong order intake, the unchanged positive development in the
Americas and Asia-Pacific as well as favorable currency effects. The
continuingly large share of high-margin equipment business in the medical
division is a main contributor to higher profitability. The turnaround
program is also having a highly positive effect and according to current
estimates will contribute at least EUR 100 million to net earnings in 2010
against 2008. Originally the plan was to achieve a positive earnings effect
of around EUR 70 million net in the current fiscal year and about EUR 100
million from 2011 on.
For 2011, Dräger intends to invest more into R&D, to implement projects
more quickly and in particular to improve the marketing and sales
organization. The company also assumes that one-time effects from the
fiscal year 2010 will not recur. These include high levels of orders on
hand from the previous year, strong order intake from large-scale projects,
the sale of a deep-sea diving system for which an impairment charge was
recorded for the full amount in 2009, the sale of software rights as well
as the exceptionally advantageous product mix. External factors such as
exchange rates are probably not going to benefit business in 2011 to the
same degree. For 2011, Dräger is therefore not expecting to exceed the EBIT
margin of the fiscal year 2010 amid slightly higher net sales. In the
medium-term, the company is planning to grow stronger than the market and
to achieve a sustained EBIT margin of at least 10 percent.
Drägerwerk AG & Co. KGaA
Moislinger Allee 53-55
23558 Lübeck, Deutschland
www.draeger.com
Disclaimer
This ad-hoc release contains forward-looking statements regarding the
future development of the 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 it to date and have
been prepared to the best of its knowledge and belief. No guarantee or
liability for the occurrence of the future developments and results
specified can be assumed in respect of such forward-looking statements.
Rather, the future developments and results are dependent on a number of
factors. They entail risks and uncertainties beyond the Company's control
and are based on assumptions which could prove to be incorrect.
Notwithstanding any legal requirements to adjust forecasts, we assume no
obligation to update the forward-looking statements contained in this
report. You will find all other financial dates on our website at
www.draeger.com under Investor Center/Financial Calendar.
Investor Relations:
Vanina Herbst
Tel. +49 451 882-2685
vanina.herbst@draeger.com
Corporate Communications:
Burkard Dillig
Tel. +49 451 882-2185
burkard.dillig@draeger.com
13.10.2010 09:47 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
Deutschland
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 Frankfurt (Prime Standard), Hamburg,
München, Berlin, Düsseldorf, Hannover; Freiverkehr in
Stuttgart
End of Announcement DGAP News-Service
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DGAP-Adhoc: Drägerwerk AG & Co. KGaA: Dräger raises 2010 guidance
| Source: EQS Group AG