Dräger reporting significant increase in Q4 profits
(Thomson Reuters ONE) -
Drägerwerk AG & Co. KGaA / Dräger reporting significant increase in Q4 profits processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.
- Q4 EBIT reached EUR 51.7 million (Q1-Q3 2009: EUR 28.4 million)
- Orders on hand at record level
- Turnaround program delivering considerably higher savings
Lübeck - According to preliminary, unaudited financial statements, Drägerwerk AG
& Co. KGaA achieved a considerable increase in profitability in the fourth
quarter of 2009. In this period alone, the company generated an EBIT of EUR
51.7 million (Q1-Q3 2009: ? 28.4 million). This means that in the period from
October to December, Dräger earned almost twice as much as in the preceding nine
months. EBIT for the full year 2009 totaled EUR 80.1 million. This is all the
more noteworthy considering that EUR 19.6 of the EUR 30 million impairment loss
on deep-sea diving systems in the safety division were recorded in the fourth
quarter alone. The majority of this impairment loss is attributable to the fact
that a customer was forced to cancel a large-scale order as a result of the
financial crisis. This negative effect was offset by net savings from the
turnaround program, which cut costs by around EUR 45 million in the full year
and therefore exceeded the figure originally forecast in Q3 2009 by around EUR
20 million. In addition to that, new products, increasing demand as well as a
higher proportion of sales from the high margin device business in the fourth
quarter had a positive impact on sales and order intake in the medical division.
Net sales almost unchanged - Orders on hand up by 9.2 percent
Order intake at Group level increased by 2.9 percent to EUR 1,978.3 million in
currency adjusted terms, while orders on hand surged by 9.2 percent, reaching
the record level of EUR 440.1 million. Consolidated net sales amounted to EUR
1,911.1 million, almost achieving previous year levels (-0.2 percent).
Consolidated EBIT was EUR 80.1 million (2008: EUR 105.8 million) and net profits
totaled EUR 32.5 million (2008: EUR 49.4 million³).
Medical division returns to growth path
At the medical division, order intake climbed by 5.4 percent in currency
adjusted terms reaching EUR 1,339.6 million. High order intake levels towards
the end of the year meant that it was not possible to ship all orders from the
different product areas within the 2009 financial year. As a result orders on
hand covered a 3.6 month period (December 31, 2008: 2.1 months). The volume of
orders on hand increased by more than 36 percent to the record figure of EUR
300.5 million (December 31, 2008: EUR 219.8 million). Net sales were up by 2.0
percent to EUR 1,261.5 million and EBIT in the medical division rose by 1.6
percent to EUR 76.7 million.
Safety division suffering from cancelled order for deep-sea diving systems
Order intake at the safety division slipped by 1.7 percent to EUR 665.9 million
in currency adjusted terms. Particularly robust developed the device business
(firefighting equipment), stationary and mobile gas detection systems and
diagnostics (breath alcohol and drug tests). Orders on hand slipped by 23.7
percent to EUR 140.7 million. Net sales amounted to EUR 676.9 million, 4.0
percent down on the previous year. EBIT at the safety division dropped by 50.5
percent to EUR 30.2 million, which was mainly due to the impairment loss of EUR
30 million on deep-sea diving systems.
Positive development of liquid assets
As of December 31, 2009, liquid assets at Group level amounted to EUR 344
million. The ratio between net debt and EBITDA was 2.6 (2008: 1.6).
Outlook
For the financial year 2010, Dräger is expecting net sales growth in the low
single digit percent region at Group level. Supported by the higher share of new
products as well as an improved cost position based on the turnaround program's
ongoing measures, Dräger is expecting the consolidated EBIT margin to climb to
between 5 and 6 percent (2009: 4.2 percent) in the financial year 2010.
Key figures for 2009 (EUR million)
+------------------+---------+---------+-----------+
| | 2009 | 2008 | Change |
+------------------+---------+---------+-----------+
| Order intake | 1,978.3 | 1,930.4 | +2.9 %(1) |
+------------------+---------+---------+-----------+
| Medical division | 1,339.6 | 1,276.9 | +5.4 %(1) |
+------------------+---------+---------+-----------+
| Safety division | 665.9 | 679.6 | -1.7 %(1) |
+------------------+---------+---------+-----------+
| | | | |
+------------------+---------+---------+-----------+
| Sales | 1,911.1 | 1,924.5 | -0.2 %(1) |
+------------------+---------+---------+-----------+
| Medical division | 1,261.5 | 1,243.8 | +2.0 %(1) |
+------------------+---------+---------+-----------+
| Safety division | 676.9 | 706.8 | -4.0 %(1) |
+------------------+---------+---------+-----------+
| | | | |
+------------------+---------+---------+-----------+
| EBIT(2) | 80.1 | 105.8 | -24.3 % |
+------------------+---------+---------+-----------+
| Medical division | 76.7 | 75.5 | +1.6 % |
+------------------+---------+---------+-----------+
| Safety division | 30.2 | 61.0 | -50.5 % |
+------------------+---------+---------+-----------+
| | | | |
+------------------+---------+---------+-----------+
| EBIT margin | 4.2 % | 5.5 % | |
+------------------+---------+---------+-----------+
| Medical division | 6.1 % | 6.1 % | |
+------------------+---------+---------+-----------+
| Safety division | 4.5 % | 8.6 % | |
+------------------+---------+---------+-----------+
| | | | |
+------------------+---------+---------+-----------+
| Net profit | 32.5 | 49.4³ | -34.2 % |
+------------------+---------+---------+-----------+
(1) Currency adjusted
(2 )EBIT = Earnings before net interest result and income taxes.
³ Given the now mandatory application of IAS 32 on the classification of equity
and debt capital, Dräger has reviewed its reporting policies for disclosed
participation capital and has identified potential for adjustments. As a result
and in keeping with IAS 32 and IAS 39 equity and debt components for respective
series of participation rights are being disclosed and valued for the first time
in the financial statements issued as of December 31, 2009. Figures from
previous years have been adjusted accordingly to aid comparability.
Disclaimer
This press release contains forward-looking statements regarding the future
development of the 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 our
control and are based on assumptions which could prove to be incorrect.
Notwithstanding any legal requirements to adjust forecasts, we assume no
obligation to update the forward-looking statements contained in this report.
You will find all key financial dates on our website at www.draeger.com
Kontakt
Corporate Communications:
Burkard Dillig
Tel.+49 451 882-2185
burkard.dillig(at)draeger.com
Investor Relations:
Vanina Herbst
Tel. +49 451 882-2685
vanina.herbst(at)draeger.com
Drägerwerk AG & Co. KGaA
Moislinger Allee 53-55
23542 Lübeck, Deutschland
www.draeger.com
[HUG#1386167]
--- End of Message ---
Drägerwerk AG & Co. KGaA
Moislinger Allee 53-55 Lübeck Germany
WKN: 555063;ISIN: DE0005550636;Index:TECH All Share,TecDAX,HDAX,MIDCAP,CDAX;Prime All Share;
Press release (PDF): http://hugin.info/135701/R/1386167/344821.pdf
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Datum: 18.02.2010 - 11:07 Uhr
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