Ad hoc reports in accordance with section 15 of the German Securities Trading Act (WpHG) - Dräger raises 2010 guidance

Wednesday, 13. October 2010 10:20
Drägerwerk AG & Co. KGaA /
Ad hoc reports in accordance with section 15 of the German Securities Trading
Act (WpHG) - Dräger raises 2010 guidance
Processed and transmitted by Thomson Reuters.
The issuer is solely responsible for the content of this announcement.

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

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


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 atwww.draeger.com under
Investor Center/Financial Calendar.


[HUG#1451547]



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Drägerwerk AG & Co. KGaA
Moislinger Allee 53-55 Lübeck Germany


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Press release (PDF):
http://hugin.info/135701/R/1451547/392662.pdf




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Source: Drägerwerk AG & Co. KGaA via Thomson Reuters ONE
Related Links: Drägerwerk AG & Co. KGaA
Author:
Hugin
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