DGAP-Adhoc: Drägerwerk AG & Co. KGaA: One-off effects impact result. Dräger revises 2015 annual forecast. Efficiency program intensified.


Drägerwerk AG & Co. KGaA  / Key word(s): Profit Warning

13.10.2015 20:42

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
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The issuer is solely responsible for the content of this announcement.

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Ad hoc reports in accordance with Sec. 15 of the German Securities Trading
Act

Drägerwerk AG & Co. KGaA: One-off effects impact result. Dräger revises
2015 annual forecast. Efficiency program intensified.

Based on preliminary figures, Drägerwerk AG & Co. KGaA concluded the third
quarter with a negative result partly due to one-off effects. The previous
annual forecast is now unlikely to be reached. In terms of the full-year
forecast, Dräger now anticipates net sales growth of 1.0 to 3.0 percent net
of currency effects and an EBIT margin of between 2.5 and 4.5 percent.

Compared to the prior-year quarter, order intake rose by 3.5 percent in the
third quarter. Dräger also recorded a 2.1 percent rise in net sales to EUR
604.0 million. Net of currency effects, order intake increased by 1.2
percent and net sales rose by 0.2 percent. In the medical division, order
intake was up by 1.8 percent (-0.9 percent net of currency effects),
whereas net sales increased by 2.5 percent (0.2 percent net of currency
effects). Orders in the safety division climbed by 6.9 percent (5.2 percent
net of currency effects), while net sales rose by 1.4 percent (0.0 percent
net of currency effects). Group EBIT totaled approximately EUR -23 million
(prior-year quarter: EUR 47.2 million), equating to an EBIT margin of -3.7
percent (prior-year quarter: 8.0 percent).

As a result, net sales in the first nine months of the year increased by
7.1 percent year on year (2.3 percent net of currency effects). Total EBIT
stood at roughly EUR 0 million (9 months 2014: EUR 81.2 million). The EBIT
margin fell from 4.9 percent in the prior-year period to 0.0 percent.

Business development in the Asia Pacific region, particularly in China, has
suffered a further downturn. Business in the region Americas also fell
short of expectations. In the safety division, business has not yet
improved in the raw materials sector, especially in areas particularly
dependent on the price of oil.

In addition, one-off effects such as write-downs on receivables and
inventories and provisions for quality costs had a negative impact of
roughly EUR 20 million on the third-quarter result.

The gross margin for the first nine months of the year stood at 44.5
percent (9 months 2014: 46.5 percent).

Functional costs rose by 12.4 percent in the first nine months of 2015
compared to the same period in the prior year, equating to a rise of 7.4
percent net of currency effects.

The recent significant devaluation of some emerging economies' currencies
also had a negative impact on the result.

New full-year forecast for 2015:
Based on business development so far, net sales growth net of currency
effects is expected to be between 1.0 percent and 3.0 percent (previously:
2.0 percent to 5.0 percent net of currency effects). The gross margin will
not match the previous year's level. Dräger expects its full-year EBIT
margin to stand at between 2.5 and 4.5 percent (previously 5.0 to 7.0
percent) and does not anticipate any significant changes in relevant
exchange rates in this context. In addition, this forecast does not include
any potential restructuring expenses that may arise within the scope of the
"Fit for Growth" efficiency program.

Dräger reviews medium-term forecast and intensifies efficiency program:
As a result of the disappointing business development Dräger is
intensifying its "Fit for Growth" efficiency program to achieve the
medium-term goals in terms of cutting administration and sales costs. The
company expects an ongoing weak development in several growth markets
outside of Europe that are important to Dräger and is therefore reviewing
the medium-term forecast. Any potential adjustment of the forecast, as well
as details on new efficiency measures, will be published together with the
final business figures for the full-year 2015 at the latest. The final
results for the first nine months of fiscal year 2015 will be published on
November 5, 2015.

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

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

Corporate Communications:
Melanie Kamann
Tel. +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.


13.10.2015 The DGAP 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:       Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime
              Standard), Hamburg, Hanover, Munich; Regulated Unofficial
              Market in Stuttgart
 
End of Announcement                             DGAP News-Service
 
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