2011 fiscal year: Dräger registers second record-breaking year in succession

Wednesday, 14. March 2012 09:35
Drägerwerk AG & Co. KGaA /
2011 fiscal year: Dräger registers second record-breaking year in succession
. Processed and transmitted by Thomson Reuters ONE.
The issuer is solely responsible for the content of this announcement.

* Record-breaking net sales of approximately EUR 2.26 billion
* Net profit up 19.3 percent
* Growth set to continue

Lübeck - 2011 was the second record-breaking year in succession for Drägerwerk
AG & Co. KGaA. Adjusted for currency effects, incoming orders rose 7.6 percent
to EUR 2,293.2 million (2010: EUR 2,145.5 million). Both divisions experienced
particularly strong growth in incoming orders from the Asia / Pacific region,
but the rest of Europe and Germany regions also displayed positive development.
Adjusted for currency effects, net sales came to EUR 2,255.8 million, up 4.4
percent on the previous year (2010: EUR 2,177.3 million). The Group's earnings
before interest and taxes (EBIT) went up 10.9 percent to EUR 213.8 million. The
EBIT margin rose to 9.5 percent (2010: 8.9 percent), therefore reaching the
upper limit of the bandwidth of 8.0 percent to 9.5 percent, which the Group had
forecast in July 2011.

Stefan Dräger, Chairman of the Executive Board at Drägerwerk Verwaltungs AG: "I
am delighted to be able to state that we achieved such good business results in
2011 while also laying the foundations for our future growth."

Medical division
In 2011, incoming orders in the medical division rose 6.3 percent (net of
currency effects) to EUR 1,518.8 million (2010: EUR 1,441.9 million). Net sales
grew 1.8 percent (net of currency effects) to EUR 1,484.5 million (2010: EUR
1,472 million), while EBIT was up 2.8 percent to EUR 191.8 million (2010: EUR
186.6 million). With an EBIT margin of 12.9 percent, 2011's performance was up
slightly on the prior-year figure (2010: 12.7 percent).

Safety division
At the safety division, incoming orders in 2011 came to EUR 805.0 million, a
total of 10.3 percent (net of currency effects) higher than the prior-year
figure (2010: EUR 731.7 million). Net sales were up 9.7 percent (net of currency
effects) to EUR 802.7 million (2010 EUR 733.8 million). EBIT growth was
particularly impressive, growing 24.6 percent year-on-year to EUR 76.1 million
(2010: EUR 61.0 million). This development enabled Dräger to achieve an EBIT
margin of 9.5 percent (2010: 8.3 percent).

Net profit rises above average by 19.3 percent
In 2011, Drägerwerk AG & Co. KGaA's net profit went up 19.3 percent year-on-year
to EUR 125.1 million (2010: EUR 104.8 million). Interest expense fell by 16
percent as the Company had little debt. Both the positive earnings trend and the
optimization of the Group structure also contributed to the tax rate dropping to
30.8 percent compared to the previous year (2010: 31.8 percent).
The particularly strong earnings growth in Germany played an advantageous role
in this development.

Proposed reduction in dividends
To enable Dräger to shoulder an improved capital structure, the Executive Board
will propose at the annual shareholder's meeting on May 4, 2012 that dividends
be reduced on a one-off basis to EUR 0.19 per preferred share and EUR 0.13 per
common share. Due to sustained macroeconomic uncertainty, Dräger wishes to
increase its equity ratio in the medium term to 40 percent of consolidated total
assets so the Company has more room for manoeuver on a strategic level. In
addition, a reduction in dividends would also represent an opportunity for
shareholders to make a contribution to the Company's plans to finance the
repurchase of participation certificates to improve the Group's capital
structure. Once the Company reaches this equity ratio, 30 percent of Group net
profit (less earnings attributable to non-controlling interests) will be paid
out in dividends. Until Dräger achieves this equity ratio, the Executive Board
intends to pay out 15 percent of the Group's net profit (less earnings
attributable to non-controlling interests). In 2011, the Group equity ratio
stood at 34.5 percent (2010: 32.2 percent). Buying back participation
certificates will reduce the equity ratio in direct proportion to the size of
the buyback.

Forecast: Growth likely to continue in 2012
Dräger anticipates that it will grow at least as fast as the entire global
economy again in 2012 (IMF January 2011 estimate: +3.3 percent). However,
research and development and IT costs will, as announced in November 2011,
probably rise faster than net sales in 2012. Basing calculations on the stable
development of the market, Dräger predicts that it will again produce a group
EBIT margin of between 8 percent and 9.5 percent in 2012. This expectation is
based on the assumption of a stabilizing economy in Europe, continued economic
recovery in North America, sustained market growth in developing countries and
stable exchange rates.
In the medium term, the new Group sales structure should significantly reduce
sales expenses and tap into additional growth potential. Expenses in the medium
one-digit million euro range were recognized in the financial statements for
fiscal year 2011 for the implementation of the new sales structure. Dräger
expects the new sales structure to generate savings of at least one percentage
point for relative marketing and sales expenses by the end of 2014.
Dräger also plans to continue to grow faster than the market and sustainably
achieve a minimum EBIT margin of 10 percent in the medium term.

Disclaimer
This press release 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 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, Dräger does not
assume any obligation to update the forward-looking statements contained in this
report. Please go to Investor Relations / Financial Calendar atwww.draeger.com
for information on all important financial dates.

2011's key figures (in EUR millions)
+-------------------------------------------------------+-------+-------+------+
|  | 2011| 2010|Change|
+-------------------------------------------------------+-------+-------+------+
|Group |  |  |  |
+-------------------------------------------------------+-------+-------+------+
|Incoming orders |2,145.5|2,293.2| +6.9%|
+-------------------------------------------------------+-------+-------+------+
|Net sales |2,177.3|2,255.8| +3.6%|
+-------------------------------------------------------+-------+-------+------+
|EBIT | 192.8| 213.8|+10.9%|
+-------------------------------------------------------+-------+-------+------+
|EBIT margin | 8.9%| 9.5%|  |
+-------------------------------------------------------+-------+-------+------+
|Net profit | 104.8| 125.1|+19.3%|
+-------------------------------------------------------+-------+-------+------+
|Earnings per preferred share (EUR) | 6.25| 7.35|+17.6%|
+-------------------------------------------------------+-------+-------+------+
|Earnings per common share (EUR) | 6.19| 7.29|+17.8%|
+-------------------------------------------------------+-------+-------+------+
|Earnings per preferred share in the case of full | | | |
|distribution | 4.36| 4.60| +5.5%|
+-------------------------------------------------------+-------+-------+------+
|Earnings per common share in the case of full | | | |
|distribution | 4.30| 4.54| +5.6%|
+-------------------------------------------------------+-------+-------+------+
|DVA | 114.5| 134.6| +17.6|
+-------------------------------------------------------+-------+-------+------+
|Employees | 11,291| 11.924| +5.6%|
+-------------------------------------------------------+-------+-------+------+
|  |  |  |  |
+-------------------------------------------------------+-------+-------+------+
|Medical division |  |  |  |
+-------------------------------------------------------+-------+-------+------+
|Incoming orders |1,441.9|1,518.8| +5.3%|
+-------------------------------------------------------+-------+-------+------+
|Net sales |1,472.0|1,484.5| +0.9%|
+-------------------------------------------------------+-------+-------+------+
|EBIT | 186.6| 191.8| +2.8%|
+-------------------------------------------------------+-------+-------+------+
|EBIT margin | 12.7%| 12.9%|  |
+-------------------------------------------------------+-------+-------+------+
|  |  |  |  |
+-------------------------------------------------------+-------+-------+------+
|Safety division |  |  |  |
+-------------------------------------------------------+-------+-------+------+
|Incoming orders | 731.7| 805.0|+10.0%|
+-------------------------------------------------------+-------+-------+------+
|Net sales | 733.8| 802.7| +9.4%|
+-------------------------------------------------------+-------+-------+------+
|EBIT | 61.0| 76.1|+24.6%|
+-------------------------------------------------------+-------+-------+------+
|EBIT margin | 8.3%| 9.5%|  |
+-------------------------------------------------------+-------+-------+------+

Contact

Corporate Communications:
Melanie Kamann
Tel. +49 451 882-3998
melanie.kamann@draeger.com

Investor Relations:
Vanina Hoffmann
Tel. +49 451 882-2685
vanina.hoffmann@draeger.com


Drägerwerk AG & Co. KGaA
Moislinger Allee 53-55
23542 Lübeck, Germany
www.draeger.com


--- End of Message ---

Drägerwerk AG & Co. KGaA
Moislinger Allee 53-55 Lübeck Germany


Listed: Freiverkehr in Börse Stuttgart,
Prime Standard in Frankfurter Wertpapierbörse,
Regulierter Markt in Frankfurter Wertpapierbörse,
Regulierter Markt in Bayerische Börse München,
Regulierter Markt in Börse Berlin,
Regulierter Markt in Hanseatische Wertpapierbörse zu Hamburg,
Regulierter Markt in Börse Düsseldorf,
Regulierter Markt in Niedersächsische Börse zu Hannover;


Press release (PDF):
http://hugin.info/135701/R/1593666/501493.pdf




This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.

Source: Drägerwerk AG & Co. KGaA via Thomson Reuters ONE

[HUG#1593666]
Related Links: Drägerwerk AG & Co. KGaA
Author:
Hugin
Copyright GlobeNewswire, Inc. 2016. All rights reserved.
You can register yourself on the website to receive press releases directly via e-mail to your own e-mail account.