Drägerwerk AG & Co. KGaA / Key word(s): Change in Forecast/Interim Report
14.07.2014 20:19
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Ad hoc report in accordance with Sec. 15 of the German Securities Trading
Act
Drägerwerk AG & Co. KGaA: Dräger revises 2014 earnings and net sales
forecast
Based on provisional figures Drägerwerk AG & Co. KGaA revises its 2014
earnings and net sales forecast. Besides the continuously strong Euro, the
substantially lower business from Russia compared to prior years and the
momentarily slow demand from medical customers in the US as well as a weak
business performance in some countries in Asia-Pacific are responsible for
the deteriorating business prospects.
Second quarter 2014:
In the second quarter of the year, Dräger recorded a decline in order
intake of 2.3 percent to EUR 574.8 million (Q2 2013: EUR 588.5 million).
Net sales fell by 1.2 percent to EUR 559.9 million (Q2 2013: EUR 566.8
million). Net of currency effects, order intake rose by 1.5 percent and net
sales rose by 2.0 percent.
In the medical division, orders were down by 2.9 percent (an increase of
1.2 percent net of currency effects), while orders in the safety division
climbed by 2.1 percent (5.3 percent net of currency effects). Group EBIT
came in at EUR 15.0 million in the second quarter (Q2 2013: EUR 39.4
million), equating to an EBIT margin of 2.7 percent (Q2 2013: 7.0 percent).
First half 2014:
As a result, orders in the first half of the year were down by 3.5 percent
year on year (increase of 0.4 percent net of currency effects). Net sales
at Dräger in the first half of the year fell by 2.5 percent (increase of
1.2 percent net of currency effects). Total EBIT stood at EUR 34.0 million
(6 months 2013: EUR 79.2 million). The EBIT margin fell from 7.2 percent in
the prior-year period to 3.2 percent.
Next to the slow demand from some countries mentioned above, delays in the
licensing of new products in the safety division contributed to the decline
in net sales on the U.S. market.
Furthermore, an unfavorable country mix and a change in the product mix
toward lower-margin products, as well as a number of lower-margin projects
also had a substantial negative impact on the gross margin. Currencies had
an additional negative impact so that the gross margin stood at 45.7
percent (6 months 2013: 49.7 percent).
Due to positive currency effects, functional expenses fell by 2.0 percent
compared to the prior-year figure. Net of currency effects functional
expenses rose slightly by 0.5 percent.
The persistently strong euro continued to have a negative impact of about
1.5 percentage points on the EBIT margin.
New guidance for fiscal 2014:
Against the backdrop of weaker-than-expected demand in the first six months
of 2014, Dräger anticipates full-year net sales growth (net of currency
effects) of 2.0 to 4.0 percent (until now: 3.0 to 6.0 percent). Based on
current exchange rates, this would result in a negative effect of more than
2 percentage points on full-year reported net sales growth when compared to
the average exchange rates of the prior year (until now: approximately 3
percentage points).
The gross margin is not likely to match the prior year's level.
Dräger now forecasts a full-year EBIT margin including currency effects of
between 4.5 and 6.5 percent.
The current weaker-than-expected development of net sales and profitability
means that the medium-term guidance needs to be reviewed. Any necessary
adjustments to the medium-term profitability and net sales targets will be
made once the results for fiscal year 2014 are published.
Dräger is working on a set of measures that will lead to greater efficiency
in the short to medium term.
Dräger will publish its full results for the first six months of the fiscal
year on July 31, 2014.
Drägerwerk AG & Co. KGaA
Moislinger Allee 53-55
23558 Lübeck, Germany
www.draeger.com
Investor Relations:
Thomas Fischler
Phone: +49 451 882-2685
thomas.fischler@draeger.com
Corporate Communications:
Melanie Kamann
Phone: +49 451 882-3998
melanie.kamann@draeger.com
Disclaimer
This ad hoc report 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 date. They were compiled to the best of the
company's knowledge. Dräger does not provide any warranty nor assume any
responsibility for the future developments and results described above.
These are dependent on a number of factors. They entail various risks and
contingencies outside of the company's influence and are based on
assumptions which could prove to be incorrect. Dräger does not assume any
responsibility for updating the forward-looking statements contained in
this report. This does not infringe any legal stipulations on the
adjustment of forecasts. Please go to Investor Relations / Financial
Calendar at www.draeger.com for information on all important financial
dates.
14.07.2014 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
Germany
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 Berlin, Düsseldorf, Frankfurt (Prime
Standard), Hamburg, Hannover, München; Freiverkehr in
Stuttgart
End of Announcement DGAP News-Service
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DGAP-Adhoc: Drägerwerk AG & Co. KGaA: Dräger revises 2014 earnings and net sales forcast
| Source: EQS Group AG