First quarter of 2012: Dräger remains successful

Thursday, 03. May 2012 07:30

Drägerwerk AG & Co. KGaA / First quarter of 2012: Dräger remains successful . Processed and transmitted by Thomson Reuters ONE. The issuer is solely responsible for the content of this announcement.

  • Net sales increased further
  • EBIT margin risen to 8.8 percent
  • Buyback of participation certificates completed
  • Outlook confirmed

Lübeck - Drägerwerk AG & Co. KGaA's net sales and earnings increased further year-on-year in the first quarter of 2012. Order intake dropped by 2.4 percent (net of currency effects) to EUR 550.9 million; in the previous year's first quarter it had risen by 13.4 percent. Net sales went up by 3.6 percent (net of currency effects) to EUR 529.3 million. The Asia / Pacific and rest of Europe regions were the strongest growth drivers.

EBIT margin rises to 8.8 percent
In the first quarter of 2012, Dräger generated gross profit of EUR 264.7 million (3 months 2011: EUR 251.8 million), going up by EUR 12.9 million and slightly below average compared to net sales. Within functional costs, research and development (R&D) expenses, in particular, rose steeply by 22.8 percent, climbing to 8.7 percent of net sales.

"Even though strict cost management for all operating processes remains a core task within our Group, we will once again increase our investments in research and development and IT in 2012 compared to the previous year. By doing so, we aim to build a foundation for sustained growth, and at the same time we aim to increase the relative profitability on a sustained basis," commented Stefan Dräger, Chairman of the Executive Board of Drägerwerk Verwaltungs AG.

Group EBIT went up to EUR 46.8 million (3 months 2011: EUR 42.6 million) and the EBIT margin rose from 8.5 percent to 8.8 percent.
Earnings after income taxes increased by 9.4 percent to EUR 25.4 million (3 months 2011: EUR 23.2 million).

Buyback of participation certificates has been completed
On February 15, 2012, Drägerwerk AG & Co. KGaA asked the holders of series A, D and K participation certificates to offer these for sale at a price of EUR 210.00 each. A total of 581,474 participation certificates (41.1 percent) were bought back during the offer period from February 20, 2012 to March 19, 2012 and redeemed in April. This corresponds to a total buyback volume of EUR 122.1 million. The equity ratio fell by 32.9 percent as of March 31, 2012 as a result of the buyback (December 31, 2011: 34.5 percent)

Outlook confirmed
Dräger continues to expect its order intake and net sales in fiscal year 2012 to grow at least at the pace of global economic growth (IMF April 2012 forecast: +3.5 percent). Dräger expects a Group EBIT margin between 8.0 percent and 9.5 percent in the current fiscal year (2011: 9.5 percent).

This is based on the assumption of a stabilizing economy in Europe, continued economic recovery in North America, continuing market growth in developing countries and stable exchange rates.

For fiscal year 2013, Dräger forecasts net sales growth to outperform market developments in both divisions and the Group EBIT margin to increase compared to 2012, provided the Company's relevant markets continue their positive performance.


Key figures for the first three months of 2012 (€ million)

First
quarter
2012
First
quarter
2011
Change Net of
currency
effects
Order intake 550.9 553.6 - 0.5 % - 2.4 %
Medical division 348.6 357.1 - 2.4 % - 4.1 %
Safety division 209.9 204.0 +2.9 % +0.8 %
 
Sales 529.3 500.3 +5.8 % +3.6 %
Medical division 337.6 321.6 +5.0 % +2.8 %
Safety division 199.5 185.9 +7.3 % +5.3 %
 
EBIT 46.8 42.6 +9.8 %
Medical division 28.2 30.6 - 8.0 %  
Safety division 27.4 21.6 +26.9 %  
 
EBIT margin 8.8 % 8.5 %
Earnings after income taxes 25.4 23.2 +9.4 %
EPS preferred share 1.47 1.22 +20.5 %
EPS common share 1.45 1.20 +20.8 %
EPS preferred share[1] on full distribution
1.12

0.87

+28.8 %
EPS common share[2] on full distribution
1.10

0.85
+29.5 %

[1] Based on the expected dividend
[2] Based on an imputed actual full distribution of earnings attributable to shareholders

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 Center / Finanzkalender at www.draeger.com for information on all important financial dates.

Contact        

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

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

Drägerwerk AG & Co. KgaA
Moislinger Allee 53-55
23558 Lübeck, Germany
www.draeger.com




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


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