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DRAGERWERK AG & CO. KGAA (FRA:DRW8) Drägerwerk AG & Co. KGaA: Dräger raises 2010 guidance

Directive transparence : information réglementée

13/10/2010 09:45
Drägerwerk AG & Co. KGaA / Key word(s): Profit Warning 13.10.2010 09:45 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Ad hoc reports in accordance with section 15 of the German Securities Trading Act (WpHG) Dräger raises 2010 guidance For fiscal year 2010, Dräger is expecting an increase in net sales in the range of 10 percent (net sales 2009: EUR 1,911 billion). Net of currency effects, growth would then be in the mid single-digit range. After the company increased the forecast for the EBIT margin in June 2010 from originally 5 to 6 percent up to 7 to 8 percent, Dräger is now expecting an EBIT margin of 8 to 9 percent. As the cash settled option was replaced by an equity settled option on August 30, 2010, the impact from the Siemens cash option component has now been determined at EUR 11.8 million and is now included in this new guidance. The option component will not impact earnings in the future. Now increased expectations for net sales and earnings are attributable to unexpectedly strong order intake, the unchanged positive development in the Americas and Asia-Pacific as well as favorable currency effects. The continuingly large share of high-margin equipment business in the medical division is a main contributor to higher profitability. The turnaround program is also having a highly positive effect and according to current estimates will contribute at least EUR 100 million to net earnings in 2010 against 2008. Originally the plan was to achieve a positive earnings effect of around EUR 70 million net in the current fiscal year and about EUR 100 million from 2011 on. For 2011, Dräger intends to invest more into R&D, to implement projects more quickly and in particular to improve the marketing and sales organization. The company also assumes that one-time effects from the fiscal year 2010 will not recur. These include high levels of orders on hand from the previous year, strong order intake from large-scale projects, the sale of a deep-sea diving system for which an impairment charge was recorded for the full amount in 2009, the sale of software rights as well as the exceptionally advantageous product mix. External factors such as exchange rates are probably not going to benefit business in 2011 to the same degree. For 2011, Dräger is therefore not expecting to exceed the EBIT margin of the fiscal year 2010 amid slightly higher net sales. In the medium-term, the company is planning to grow stronger than the market and to achieve a sustained EBIT margin of at least 10 percent. Drägerwerk AG & Co. KGaA Moislinger Allee 53-55 23558 Lübeck, Deutschland www.draeger.com Disclaimer This ad-hoc 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 the Company's 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 other financial dates on our website at www.draeger.com under Investor Center/Financial Calendar. Investor Relations: Vanina Herbst Tel. +49 451 882-2685 vanina.herbst@draeger.com Corporate Communications: Burkard Dillig Tel. +49 451 882-2185 burkard.dillig@draeger.com 13.10.2010 09:45 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: 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: 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 Frankfurt (Prime Standard), Hamburg, München, Berlin, Düsseldorf, Hannover; Freiverkehr in Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------