Dräger increases 2011 earnings forecast

Tuesday, 19. July 2011 10:22
Drägerwerk AG & Co. KGaA /
Dräger increases 2011 earnings forecast
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Drägerwerk AG & Co. KGaA expects earnings in financial year 2011 to be better
than previously forecasted. The Company now anticipates an EBIT margin of 8.0
percent to 9.5 percent (previously: 7.5 percent to 8.5 percent) - based on the
unchanged assumption of slight net sales growth.

The reason for this improved earnings outlook is the positive business
performance in the first six months of 2011. Group sales went up by about 2
percent (net of currency effects) and the EBIT margin reached around 9 percent,
primarily due to the positive earnings trend in the safety division. The safety
division increased net sales by roughly 9 percent (net of currency effects) and
achieved an EBIT margin of approximately 12 percent in the first half of 2011
thanks to continuously strong demand in the high-margin business with industrial
customers and to overall high capacity utilization. The performance of the
medical division was also aided by the favorable product mix, which exceeded
expectations - even though individual transactions in the previous year with
above-average margins (in connection with the H1N1 virus, for instance) were not
repeated and the division was unable to compensate for this. Combined with a
slight drop in net sales of around 1 percent (net of currency effects) in the
first six months of 2011, this lowered the EBIT margin to approximately 11
percent year-on-year.
In terms of the 2011 gross margin, Dräger expects that the positive effects from
the higher proportion of business with industrial customers and the new products
launched in the previous years by both divisions will offset the negative
effects on margins in the medical division. Dräger still plans increases in
product development investments and improvements to the Group-wide IT
infrastructure. The costs for the new marketing and sales structure will not be
recognized to the originally anticipated extent in 2011.

The published sales and margin estimates are based on the assumption of a steady
development in the markets relevant for Dräger and unchanged exchange rates. In
addition, the global situation has also become more uncertain, making an exact
forecast difficult. In the medium term, the company plans to grow faster than
the market and achieve a sustainable EBIT margin of at least 10 percent.

Drägerwerk AG & Co. KGaA
Moislinger Allee 53-55
23558 Lübeck, Germany
www.draeger.com

Investor Relations:
Vanina Herbst
Phone: +49 451 882-2685
vanina.herbst@draeger.com

Corporate Communications:
Melanie Kamann
Phone: +49 451 882-3998
melanie.kamann@draeger.com

Disclaimer
This ad hoc report contains statements on the future development of 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 date. They were compiled to the best of the company's knowledge.
Dräger does not provide any warranty nor assume any responsibility for the
future developments and results described above. These are dependent on a number
of factors. They entail various risks and contingencies outside of the company's
influence and are based on assumptions which could prove to be incorrect. Dräger
does not assume any responsibility for updating the forward-looking statements
contained in this report. This does not infringe any legal stipulations on the
adjustment of forecasts. Please go to Investoren / Finanzkalender
atwww.draeger.com for information on all important financial dates.

--- End of Message ---

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


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Source: Drägerwerk AG & Co. KGaA via Thomson Reuters ONE

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