First half of 2012: Dräger records stable business development

Thursday, 02. August 2012 07:30

Drägerwerk AG & Co. KGaA / First half of 2012: Dräger records stable business development . Processed and transmitted by Thomson Reuters ONE. The issuer is solely responsible for the content of this announcement.

  • Order intake and net sales have grown and remain stable net of currency effects
  • Investments in the Group's future have been further increased
  • Outlook confirmed

Lübeck - Drägerwerk AG & Co. KGaA further increased order intake (+2.7 percent) and net sales (+3.8 percent) in the first half of 2012, thereby profiting from the weak euro. Net of currency effects, both order intake and net sales were only slightly up year-on-year.

Order intake went up by 0.1 percent (net of currency effects) to EUR 1,139.1 million in the first six months of 2012 (6 months 2011: EUR 1,109.1 million). A slight rise in Medical was faced by a drop in Safety. Net sales at Dräger increased by 0.8 percent (net of currency effects) to EUR 1,072.7 million in the first half of 2012 (6 months 2011: EUR 1,033.3 million). Both divisions contributed to this development.

In the second quarter of 2012, Dräger increased order intake by 2.5 percent (net of currency effects). While Medical saw a significant increase, Safety recorded a slight decrease. Net sales declined by 1.8 percent (net of currency effects) in the second quarter, with both divisions contributing to this drop.

Dräger invests in its future
In the first half of 2012, gross profit went up by EUR 24.0 million to EUR 537.7 million, slightly above average compared to net sales. The gross margin was 50.1 percent, 0.4 percentage points up on the prior year.
In the first half of 2012, functional costs rose by 6.1 percent compared to the prior-year figure, the main reason being a rise in research and development (R&D) costs of 22.7 percent. R&D as a percentage of net sales reached 8.7 percent (6 months 2011: 7.4 percent).
Overall, Dräger generated Group earnings before interest and taxes (EBIT) of EUR 93.7 million (6 months 2011: EUR 94.5 million). The EBIT margin amounted to 8.7 percent (6 months 2011: 9.1 percent).

"It comes as no surprise that we did not manage to increase our figures year-on-year, as we significantly upped our investments in research and development in the first half of the year, as previously announced, and also increased our IT investments," commented Stefan Dräger, Chairman of the Executive Board of Drägerwerk Verwaltungs AG. "We believe that this is the right path to take as our efforts today will secure our competitive advantage in the future," he added.

Earnings after income taxes amounted to EUR 53.1 million, down 1.1 percent on the prior-year period (6 months 2011: EUR 53.7 million). Earnings per share, based on the financial statements for the first half of 2012, went up year-on-year.

Outlook confirmed
Dräger continues to expect order intake and net sales to grow at least at the pace of global economic growth overall (IMF forecast from July 16, 2012: +3.5 percent), despite order intake and net sales (net of currency effects) not matching global economic growth in the first half of 2012.

Dräger anticipates research and development as well as IT costs, both higher than originally forecast, will be offset by a slightly improved gross margin.
Overall, Dräger continues to expect a Group EBIT margin between 8.0 percent and 9.5 percent for fiscal year 2012 (2011: 9.5 percent).
The 2013 forecast also remains unchanged.

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

Second quarter 2012 Second quarter 2011 Six months 2012 Six months 2011 Change Net of currency effects
Order intake 588.4 555.5 1,139.3 1,109.1 + 2.7 % + 0.1 %
Medical division 387.1 356.7 735.7 713.9 + 3.1 % + 0.5 %
Safety division 209.6 206.2 419.5 410.2 + 2.3 % - 0.5 %
 
Net sales 543.4 533.1 1,072.7 1,033.3 + 3.8 % + 0.8 %
Medical division 348.0 341.4 685.7 663.0 + 3.4 % + 0.4 %
Safety division 202.9 199.2 402.4 385.2 + 4.5 % + 1.7 %
 
EBIT 47.0 51.9 93.7 94.5
Medical division 32.2 39.3 60.3 69.9    
Safety division 24.8 24.2 52.3 45.8    
 
EBIT margin 8.6 % 9.7 % 8.7 % 9.1 %
Earnings after income taxes 27.7 30.4 53.1 53.7
EPS preferred share[1] in € 1.58 1.60 3.06 2.82
EPS common share[1] in € 1.57 1.59 3.03 2.79
EPS preferred share[2] in €
Full distribution
1.21 1.14 2.33 2.02
EPS common share[2] in €
Full distribution
1.20 1.13 2.30 1.99

[1] On the basis of 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. You will find all important financial dates on our Company website at www.draeger.com under Investor Center/Financial Calendar.

Contact

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

Investor Relations:
Thomas Fischler
Phone: +49 451 882-2685
thomas.fischler@draeger.com


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




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

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


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