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| Dräger kicks off fiscal year 2005 with double-digit order growth in the first quarter/At 78 percent, the proportion of revenues generated abroad reaches record levels (prior year: 76 percent)/EBIT stable |
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| Lübeck, May 12, 2005 - Drägerwerk AG, Lübeck, a global leader in medical and safety technology, was able to buck the negative economic trend and weak dollar to continue its growth story in the first quarter of 2005 and even extend its market position worldwide. |
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| At the end of the first quarter of 2005, both order intake and group revenues were substantially higher year on year, up 11.7 percent and 9.1 percent, respectively. Showing an increase of 27.7 percent, revenue growth was most pronounced in the Americas. |
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| This trend was driven by Dräger Medical, which increased revenues particularly in Central and South America. In the US, revenues remained unchanged on the prior year, while order intake (in local currency) increased by as much as 20 percent. Dräger Safety made particular progress in its core business areas. In Germany (up 3.0 percent) as well as in the rest of Europe (up 5.6 percent), revenues were slightly higher. Following the SARS-related business of the prior year, revenues for the first quarter in the Asia/Pacific region (down 3.6 percent) remained virtually the same year on year; the core business areas performed well. |
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Q1/2005 key figures for the Group
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| Q1/2005
IFRSs
| Q1/2004
IFRSs
| Change
| Order intake |
€392.5 million |
€351.4 million |
+11.7 % |
| Revenues |
€341.4 million |
€312.8 million |
+9.1% |
Ebit before
non-recurring expenses |
€18.0 million |
€17.8 million |
+1.1% |
| EBIT margin |
5.3% |
5.7% |
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| Net profit for the year 1) |
€4.9 million |
€15.7 million |
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| Headcount as of March 31 |
9,671 |
9,748 |
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1) Net profit for fiscal year 2004, including the result from discontinued operations
of €9.0 million (2005: €0 million) |
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| At €18 million, EBIT (before non-recurring expenses) was marginally higher than the €17.8 million recorded in the prior-year period. However, the expected increase in price pressure and the invoicing of larger-scale orders slightly narrowed the Group’s gross margin in this quarter. As regards functional costs (development, sales, administration), additional costs compared with the prior year mainly arose from the expansion of the sales organization in the US and the takeover of Air-Shields by Dräger Medical in the prior year. |
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| At €4.9 million, net profit for the quarter was considerably lower than the €15.7 million recorded in the prior-year period. The difference is attributable to the sale of the IT companies and Dräger ProTech GmbH, which led to total gains on disposal of €9.0 million, as disclosed in the Q1/2004 financial statements. Export financing costs and expenses incurred from hedged positions also led to additional finance expense. |
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| In the first quarter of fiscal year 2005, the two subgroups, Dräger Medical and Dräger Safety, continued to enjoy the uptrend experienced by the Group over the previous four fiscal years. |
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- Double-digit growth in order intake and revenues
- Earnings growth even steeper
Dräger Medical concluded the first quarter of 2005 with EBIT of €11.9 million, which represents a year-on-year increase of 19 percent (Q1/2004: €10.0 million before non-recurring costs). At 5.3 percent, the EBIT margin was slightly above last year’s (Q1/2004: 5.0 percent). Revenues rose by 13.0 percent to €226.2 million (Q1/2004: €200.2 million), the first fruit borne of the continued expansion of global sales structures in the prior year, both in the US and through newly formed subsidiaries. |
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| The subgroup increased its order intake by 19.3 percent year on year to €263.8 million (Q1/2004: €221.2 million). Double-digit growth was recorded mainly in Europe - excluding Germany - and in the Americas. US orders rose by 20.5 percent in local currency, in line with expectations. The hospital market in Germany is currently in a phase of consolidation, which has increasingly shaken confidence and discouraged investment. Order intake in Germany was down 6 percent in the first quarter. |
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- Growth primarily in core business
- Sound performance in all regions
In the first quarter of 2005, Dräger Safety recorded EBIT of €11.1 million (Q1/2004: €9.6 million), which equates to an EBIT margin of 9.0 percent (Q1/2004: 8.4 percent). The subgroup’s global revenues rose year on year by 8.7 percent to €123.2 million in the first three months of 2005 (Q1/20004: €113.3 million). At €136.4 million, order intake was up 2.7 percent on the prior-year period (€132.8 million). |
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| With effect as of January 1, 2005, Dräger Interservices GmbH was integrated into Dräger Safety. The company’s main customers for logistics services are Dräger Safety and Dräger Medical. Consolidated revenues/order intake amount to €5.8 million. |
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| The transfer of a subsidiary of Dräger Interservices GmbH within the Group led to additional profit of €2.1 million for Dräger Safety. |
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| “In the first quarter of 2005, our growth rates outstripped those of the medical and safety technology markets in which we operate”, commented Executive Board Chairman of Drägerwerk AG Theo Dräger. |
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| “We want to continue this growth story for the rest of the year, even if prolonged economic and exchange rate uncertainty makes precise forecasts difficult. Focusing on the US and the Asia/Pacific region and assuming a healthy order book in Europe (excluding Germany), we predict a rise in revenues of 5 to 7 percent and an increase in earnings and net profit for the year of 5 to 10 percent. We expect our operating business in particular to continue fuelling earnings growth in the coming quarters.” |
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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 comprise certain risks and uncertainties. |
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