Annual accounts press conference 2010: Turnaround program already saved around EUR 45 million in 2009
(Thomson Reuters ONE) -
Drägerwerk AG & Co. KGaA / Annual accounts press conference 2010: Turnaround program already saved around EUR 45 million in 2009 processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.
* Orders on hand up 10 percent year-on-year
* Cash flow increased, capital employed decreased
* Higher dividend has been suggested
Lübeck - Drägerwerk AG & Co. KGaA took important steps towards increasing
efficiency, lowering costs and boosting net sales in fiscal year 2009 with the
help of its turnaround program. Order intake in 2009 went up by 2.9 percent (net
of currency effects) to EUR 1,978.3 million and orders on hand increased by 9.2
percent (net of currency effects) to a record EUR 440.1 million. Net sales
amounted to EUR 1,911.1 million, almost the same level as in the prior year (net
of currency effects: -0.2 percent). Group EBIT totaled EUR 80.1 million (2008:
EUR 105.8 million) and net profit EUR 32.5 million (2008: EUR 49.4 million).
"2009 was a pivotal year for Dräger, a year of change. Change which was urgently
needed," comments Stefan Dräger, Chairman of the Executive Board of Drägerwerk
Verwaltungs AG.
Turnaround
Savings from the turnaround program totaled about EUR 64 million in 2009,
significantly higher than originally planned. Once implementation costs of EUR
18.5 million had been deducted, savings came to around EUR 45 million, about EUR
20 million more than predicted in the last forecast in the third quarter of
2009. A sustained cost reduction was achieved mainly in procurement (lower
costs of production materials and services), travel and communications,
marketing and sales and logistics. Service and development processes were also
structured in a more efficient manner. In 2010, Dräger is aiming to increase
savings by around EUR 80 million (measured against the net sales and cost
structure as well as exchange rates in 2008) and is anticipating implementation
costs of approximately EUR 10 million. As of 2011, the group is aiming to
achieve a positive effect of EUR 100 million per year compared to 2008. Stefan
Dräger: "By launching the program we have started to sustainably reduce our
break-even point and boost our flexibility, while continuing as ever to make
significant investments in research and development. In short: Change achieved,
direction on track."
Medical division
In fiscal year 2009, global order intake in the medical division amounted to EUR
1,339.6 million: 5.4 percent (net of currency effects) higher than in the prior
year. As a result of large numbers of incoming orders at the end of the year,
orders on hand went up to a record EUR 300.5 million (December 31, 2008: EUR
219.8 million). It was not possible to deliver many of the orders before the end
of 2009. For this reason, net sales (net of currency effects) increased by only
2.0 percent to EUR 1,261.5 million (2008: EUR 1,243.8 million). EBIT rose by
1.6 percent to EUR 76.7 million and return on capital employed (ROCE) went up to
14.1 percent (2008: 11.8 percent).
Safety division
Order intake in the safety division was down 1.7 percent (net of currency
effects) to EUR 665.9 million, while orders on hand fell by 23.7 percent to EUR
140.7 million. Global net sales (net of currency effects) amounted to EUR 676.9
million, 4.0 percent less than in the prior year. An impairment loss on deep sea
diving systems of EUR 30 million reduced EBIT by 50.5 percent to EUR 30.2
million and ROCE to 15.9 percent (2008: 27.3 percent).
Financial position and net assets
Dräger Group's net assets in 2009 were impacted by the turnaround program and
the buyback of Siemens' shares in Dräger Medical AG & Co. KG. With the help of
the turnaround program, capital employed had decreased by 25.9 percent to EUR
709.1 million as of December 31, 2009 (2008: EUR 956.8 million) as a result of a
drop in trade receivables, inventories and other assets. Correspondingly, cash
flow from operating activities developed positively in 2009 and amounted to EUR
193.5 million (2008: EUR 104.7 million). Due to the recognition of the share
buyback from Siemens in 2009, intangible assets went up, while at the same time
equity went down to EUR 393.8 million (2008: EUR 553.8 million) and the equity
ratio dropped to 20.9 percent (2008: 33.5). When the time and structure of the
group is right, Dräger will carry out a capital increase aimed at strengthening
its equity base. The family shareholders have already agreed to take part in
such a measure.
Dividend proposal: EUR 0.40 per preferred share
Taking into account earnings developments, the Executive Board of the general
partner and the Supervisory Board of Drägerwerk AG & Co. KGaA propose to
distribute a dividend of EUR 0.34 per common share and EUR 0.40 per preferred
share (EUR 0.05 per share higher than in the prior year). Stefan Dräger: "We
would like our shareholders to benefit from the positive effects created by the
buyback of our share from Siemens and are therefore increasing the dividend."
Outlook
Dräger is anticipating group net sales to grow in the lower one-digit percentage
range in the current fiscal year and an increase of the group EBIT margin of 5
to 6 percent in 2010 (2009: 4.2 percent), assuming that the markets relevant to
Dräger continue developing steadily, the group successfully keeps up the
turnaround program, before effects from the transaction with Siemens, and based
on a large number of new products in the group portfolio. In the medium term,
Dräger plans to generate net sales growth in line with market levels and above
and a group EBIT margin of around 10 percent.
Disclaimer
Diese Pressemitteilung enthält Aussagen über die zukünftige Entwicklung des
Dräger-Konzerns. Diese zukunftsbezogenen Aussagen basieren auf den gegenwärtigen
Erwartungen, Vermutungen und Prognosen des Vorstands sowie den ihm derzeit
verfügbaren Informationen und sind nach bestem Wissen und Gewissen
zusammengestellt worden. Hinsichtlich solcher zukunftsbezogenen Aussagen kann
keine Garantie und keine Haftung für den Eintritt der genannten zukünftigen
Entwicklungen und Ergebnisse übernommen werden. Die zukünftigen Entwicklungen
und Ergebnisse sind vielmehr abhängig von einer Vielzahl von Faktoren. Sie
beinhalten Risiken und Unwägbarkeiten, die sich dem Einfluss des Unternehmens
entziehen und befruhen auf Annahmen, die sich möglicherweise als nicht
zutreffend erweisen. Unbeschadet rechtlicher Bestimmungen zur Korrektur von
Prognosen übernehmen wir keine Verpflichtung, die in diesem Bericht gemachten
zukunftsbezogenen Aussagen zu aktualisieren. Alle wichtigen Finanztermine
entnehmen Sie bitte unserer Unternehmenswebseite www.draeger.com
Key figures (? million)
+-------------------------------------+---------+---------+---------+
| | 2009 | 2008 | Change |
+-------------------------------------+---------+---------+---------+
| Group | | | |
+-------------------------------------+---------+---------+---------+
| Order intake | 1,978.3 | 1,930.4 | +2.5 % |
+-------------------------------------+---------+---------+---------+
| Net sales | 1,911.1 | 1,924.5 | -0.7 % |
+-------------------------------------+---------+---------+---------+
| EBIT | 80.1 | 105.8 | -24.3 % |
+-------------------------------------+---------+---------+---------+
| EBIT margin | 4.2 % | 5.5 % | |
+-------------------------------------+---------+---------+---------+
| Net profit | 32.5 | 49.4 | -34.2 % |
+-------------------------------------+---------+---------+---------+
| Earnings per preferred share (?) | 1.20 | 2.53 | -52.6 % |
+-------------------------------------+---------+---------+---------+
| R&D expenses | 149.4 | 142.0 | +5.2 % |
+-------------------------------------+---------+---------+---------+
| Cash flow from operating activities | 193.5 | 104.7 | +84.8 % |
+-------------------------------------+---------+---------+---------+
| Net financial debt | 374.4 | 258.0 | +45.1 % |
+-------------------------------------+---------+---------+---------+
| Investments | 128.3 | 74.8 | +71.5 % |
+-------------------------------------+---------+---------+---------+
| Capital employed | 709.1 | 956.8 | -25.9 % |
+-------------------------------------+---------+---------+---------+
| ROCE | 11.3 % | 11.1 % | |
+-------------------------------------+---------+---------+---------+
| Net working capital | 191.4 | 487.8 | -60.8 % |
+-------------------------------------+---------+---------+---------+
| Dividend per preferred share (?) | 0.40 | 0.35 | |
+-------------------------------------+---------+---------+---------+
| Dividend per common share (?) | 0.34 | 0.29 | |
+-------------------------------------+---------+---------+---------+
| Headcount | 11,071 | 10,909 | +1.5 % |
+-------------------------------------+---------+---------+---------+
Key figures (? million)
+-------------------------------------+---------+---------+---------+
| | 2009 | 2008 | Change |
+-------------------------------------+---------+---------+---------+
| Medical division | | | |
+-------------------------------------+---------+---------+---------+
| Order intake | 1,339.6 | 1,276.9 | +4.9 % |
+-------------------------------------+---------+---------+---------+
| Net sales | 1,261.5 | 1,243.8 | +1.4 % |
+-------------------------------------+---------+---------+---------+
| EBIT | 76.7 | 75.5 | +1.6 % |
+-------------------------------------+---------+---------+---------+
| EBIT margin | 6.1 % | 6.1 % | |
+-------------------------------------+---------+---------+---------+
| Net profit | 51.2 | 55.0 | -6.9 % |
+-------------------------------------+---------+---------+---------+
| R&D expenses | 107.8 | 104.7 | +3.0 % |
+-------------------------------------+---------+---------+---------+
| Cash flow from operating activities | 157.2 | 107.2 | +46.6 % |
+-------------------------------------+---------+---------+---------+
| Capital employed | 544.0 | 641.9 | -15.3 % |
+-------------------------------------+---------+---------+---------+
| ROCE | 14.1 % | 11.8 % | |
+-------------------------------------+---------+---------+---------+
| Headcount | 6,305 | 6,326 | -0.3 % |
+-------------------------------------+---------+---------+---------+
| | | | |
+-------------------------------------+---------+---------+---------+
| Safety division | | | |
+-------------------------------------+---------+---------+---------+
| Order intake | 665.9 | 679.6 | -2.0 % |
+-------------------------------------+---------+---------+---------+
| Net sales | 676.9 | 706.8 | -4.2 % |
+-------------------------------------+---------+---------+---------+
| EBIT | 30.2 | 61.0 | -50.5 % |
+-------------------------------------+---------+---------+---------+
| EBIT margin | 4.5 % | 8.6 % | |
+-------------------------------------+---------+---------+---------+
| Net profit | 19.9 | 39.3 | -49.4 % |
+-------------------------------------+---------+---------+---------+
| R&D expenses | 39.3 | 34.6 | +13.6 % |
+-------------------------------------+---------+---------+---------+
| Cash flow from operating activities | 73.8 | 49.9 | +47.9 % |
+-------------------------------------+---------+---------+---------+
| Capital employed | 190.1 | 223.8 | -15.1 % |
+-------------------------------------+---------+---------+---------+
| ROCE | 15.9 % | 27.3 % | |
+-------------------------------------+---------+---------+---------+
| Headcount | 4,336 | 4,194 | +3.4 % |
+-------------------------------------+---------+---------+---------+
Contact
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
23558 Lübeck, Deutschland
www.draeger.com
The press release can be downloaded from the following link:
[HUG#1394733]
--- End of Message ---
Drägerwerk AG & Co. KGaA
Moislinger Allee 53-55 Lübeck Germany
WKN: 555063;ISIN: DE0005550636;Index:HDAX,TecDAX,TECH All Share,Prime All Share,CDAX;MIDCAP;
Press Release (PDF): http://hugin.info/135701/R/1394733/351666.pdf
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Datum: 17.03.2010 - 04:45 Uhr
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