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| Lübeck, Germany, August 9, 2007 – Drägerwerk AG, Lübeck, continued its steady performance in the first six months of fiscal year 2007. Business met expectations: the prior year’s figures were mostly achieved or outstripped thanks to organic growth. In the first half of 2006, business was positively influenced by several major projects, especially in the Medical division. |
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| In the first half of 2007, order intake and revenues in the Dräger Group reached similarly high levels as in the prior year. Order intake of EUR 914.7 million was 1.8 percent lower than the prior-year figure of EUR 931.5 million, while revenues of EUR 837.4 million exceeded first-half revenues in the prior year by 2.2 percent. The change in exchange rates reduced the current figures by some 2 percent year on year. |
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| The Group’s steady development was driven by the excellent performance of Dräger Safety, which posted a 9.2 percent increase in order intake and a 10.9 percent rise in revenues in the first half compared to the prior-year period.
Dräger Medical was not able to repeat the prior year’s figures, as order intake and revenues in the first half of 2006 included particularly large projects in Europe and Latin America. The absence of these projects in the first half of 2007 was only partly compensated for.
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| This trend is also evident in the regional distribution of the Dräger Group’s order intake. The prior-year figures were not achieved in Europe excluding Germany (down 3.2 percent) and in the Americas (down 14.4 percent), while in Germany the growth of Dräger Safety made up for the slight drop at Dräger Medical. Both divisions recorded steady growth in Asia/Pacific and the other countries. |
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| The regional distribution of consolidated revenues is also shaped by the high prior-year figures, although in this case the positive performance of Dräger Safety in all regions offset the marginal drop at Dräger Medical. |
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| As a result of the low increase in revenues, first-half EBIT of EUR 50.9 million (H1/2006: EUR 52.8 million) is EUR 1.9 million below the prior year. With a slight increase in gross margin, gross profit was up EUR 11.3 million, helping compensate for functional costs, which tend to follow a straight line rather than being dependent on revenues. |
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| Research and development costs of EUR 60.0 million came to 7.2 percent of revenues in the first half of 2007 (prior year: 7.1 percent). The interest result increased due to a rise in interest income from investments and constant interest expenses. Tax expense dropped slightly because tax accruals were recognized at a rate of 38 percent (H1/2006: 40 percent). Due to the acquisition of a 10 percent interest in Dräger Medical AG & Co. KG, earnings per preferred share rose from EUR 1.05 in the prior year to EUR 1.37. |
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| H1/2007
| H1/2006
| Change
| Order intake |
€914.7 million |
€931.5 million |
-1.8% |
| Revenues |
€837.4 million |
€819.6 million |
+2.2% |
| EBIT |
€50.9 million |
€52.8 million |
-3.6% |
| EBIT margin |
6.1% |
6.4% |
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| Net profit |
€22.2 million |
€21.6 million |
+2.8% |
| Headcount as of June 30 |
10,169 |
9,887 |
+2.9% |
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| The Dräger Group aims to continue its top and bottom-line success in 2007, according to a statement made by Executive Board Chairman Stefan Dräger upon presentation of the H1 report. Steps to strengthen competitiveness, such as expanding the global sales and service structure and renewing the portfolio through continuous innovation, will help achieve this goal. In light of the effects described (strong euro, unusually big projects in the prior year), business performance in the first half of 2007 was in line with expectations. Both divisions, Medical and Safety, remain in a strong position in their respective segments of the world market: acute point of care and hazard management. |
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Disclaimer
This press release contains forward-looking statements regarding the development of the Dräger Group. No assurance can be given as to the content of these statements as they are based on assumptions and estimates that entail certain risks and uncertainties.
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