DGAP-Adhoc: Drägerwerk AG & Co. KGaA:Dräger countering negative earnings trend by launching turnaround program

 | Source: EQS Group AG EQS Group AG 

Drägerwerk AG & Co. KGaA / Restructure of Company

15.06.2009 

Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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After a Supervisory Board meeting the Executive Board of Drägerwerk AG &
Co. KGaA today approved a turnaround program. As a result the Executive
Board is expecting a positive effect of EUR 100 million by 2011 against the
benchmark figure of the net sales and cost structure in 2008 given
comparable foreign exchange rates. The majority of the more than 400
individual measures are already to impact in 2010. For 2009 the Executive
Board assumes that Group EBIT will be well below previous year figures and
will although fall short of the EUR 97.5 million anaylsts' consensus
figure. These negative impacts on earnings are attributable to an expected
decline in net sales of around 5 percent and a shift in the product mix
towards less profitable products. These effects will not be offset
sufficiently by already available flexibility to adjust capacities and will
not be completely compensated by the turnaround program. Despite the
negative development trend in earnings, the Company will continue to
maintain its R&D investments at high levels in line with the previous year
and will be launching 13 new products in the medical division and 16 new
products in the safety division.
DGAP 15.06.2009 
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Language:     English
Issuer:       Drägerwerk AG & Co. KGaA
              Moislinger Allee 53-55
              23542 Lübeck
              Deutschland
Phone:        +49 (0)451 882-0
Fax:          +49 (0)451 882-2080
E-mail:       info@draeger.com
Internet:     www.draeger.com
ISIN:         DE0005550636, DE 000 555 065 1, DE 000 555 067 7, DE 000 555 071 9
WKN:          555063, 555065 Genussschein A, 555067 Genussschein K, 555071 Genussschein D
Indices:      TecDAX
Listed:       Regulierter Markt in Berlin, Frankfurt (Prime Standard),
              Hannover, Düsseldorf, Hamburg, München; Freiverkehr in
              Stuttgart
 
End of News                                     DGAP News-Service
 
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