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- Consolidated net profit up 26.0% to €59.6 million
- EBIT up 9.4% to €128.2 million
- Revenues up 7.3% to €1.6 billion
- Order intake up 11.3% to €1.7 billion
- Key financial figures stable
- Growth story expected to continue in 2006
- Higher dividends proposed
- Statutory audit not yet completed
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Lübeck, March 14, 2006 – The Dräger Group achieved order intake and revenue highs yet again in fiscal year 2005. Order intake rose by 11.3% to €1,696 million, and revenues by 7.3% to €1,631 million.
Both subgroups successfully expanded their positions in a number of key markets and achieved substantial growth despite the increased pressure on prices. Compared with the prior year, order intake improved in all the major regions. Europe, excluding Germany, saw orders increase by 14.6%, Asia/Pacific by 12.5% and the Americas by 21.8%. Tough conditions on the German market left order intake around the prior-year level (-0.8%). In the Americas and the Asia/Pacific region, in particular, revenue growth was lower than that of order intake due to unrealized revenues on some orders as of year-end. Order intake has, however, therefore provided a sound basis for the first quarter of fiscal year 2006. Both subgroups contributed to the positive trend in order intake and revenues. Growth at Dräger Safety is partly attributable to the takeover of the logistics company Dräger Interservices GmbH by Drägerwerk AG; however, this did not have any effect on the Dräger Group’s figures.
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| In fiscal year 2005, Dräger Group’s net profit climbed 26.0% to €59.6 million (2004: €47.3 million), thereby equaling a revenue yield of 3.7% (2004: 3.1%). €22.7 million of net profit is attributable to minority interests (2004: €22.0 million), leaving the remaining €36.9 million (2004: €25.3 million) attributable to Drägerwerk AG shareholders. This produces earnings per share of €2.87 (2004: €1.96) for common stockholders and €2.93 (2004: €2.02) for preferred stockholders. €0.41 of earnings per share is due to a positive non-recurring effect from the change in legal form of Dräger Medical AG & Co. KGaA to Dräger Medical AG & Co. KG. |
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| EBIT climbed 9.4% to €128.2 million in fiscal year 2005 again outstripping the 7.3% growth in revenues. However, the gross margin dropped slightly to 48.1% (2004: 49.2%) due to increased pressure on prices. The improvement in EBIT was underpinned by the significantly lower than proportionate rise in operating costs. The marginal increase in costs reflects not only the tough competitive environment but also the progress the Dräger Group has made in optimizing its cost structure. |
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Furthermore, the M&A-related non-recurring expenses incurred in fiscal year 2005 for follow-up work on Dräger Medical projects decreased to just €3.4 million (2004: €22.3 million).
The negative financial result of -€32.1 million (2004: -€24.9 million) is mainly due to the net interest expense stemming from the increased debt requirement and exchange losses of €5.4 million (2004: -€1.7 million) which were incurred as a result of hedging the budgeted exchange rates.
Despite the 36.2% improvement in earnings before taxes to €97.0 million (2004: €71.2 million), income taxes only increased slightly due to the improved ratio of taxable profit to non-taxable losses within the Group. This led to an improved tax load ratio.
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| 2005
| 2004
| Change
Revenues
Group
Medical
Safety |
€1,630.8 million
€1,106.4 million
€557.8 million |
€1,520.5 million
€1,023.4 million
€503.0 million |
+7.3%
+8.1%
+10.9% |
EBIT
Group
Medical
Safety |
€128.2 million
€100.7 million
€47.2 million |
€117.2 million
€94.2 million
€40.9 million |
+9.4%
+6.9%
+15.4% |
| Consolidated net profit |
€59.6 million |
€47.3 million |
+26.0% |
Earnings per preferred share
after minority interests
Thereof non-recurring effect |
€2.93
+ €0.41 |
€2.02
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+45.0%
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The Dräger Group’s assets increased in fiscal year 2005. Total assets rose by €107.2 million to €1,536.2 million, mainly as a result of the €28.5 million increase in inventories and the €65.8 million increase in current trade receivables. The increase in receivables is partly due to the average increase in payment periods resulting from a change in the structure of revenues by country. In terms of inventories, an increase was recorded in raw materials, consumables and supplies as well as in work in process and finished products, the latter chiefly ensuing from orders received before the end of the year.
€33.7 million of the increase in assets was financed through equity and the remainder by increasing non-current liabilities to banks through the issuance of new debt securities.
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| The Group’s equity base of €502.8 million covers all non-current assets. All inventories and around 50% of trade receivables are financed by non-current liabilities, including pension provisions. At 32.7%, the equity ratio remained almost unchanged on the prior year (2004: 32.8%). Capital employed (consolidated assets excluding cash and cash equivalents and deferred taxes minus non-interest bearing liabilities) rose to €885.4 million (2004: €796.8 million) in line with the increase in the Group’s assets. Due to the increase in capital employed, net debt increased to €255.8 million or 140% of EBITDA (2004: €218.3 million or 130% of EBITDA). This means that the Group will continue to have adequate financing leeway. |
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| In light of this overall strong business performance, the Executive Board of Drägerwerk AG has proposed to the Supervisory Board to increase dividends to €0.44 per common share (prior year: €0.39) and €0.50 per preferred share (prior year: €0.45) and submit this proposal for resolution at the stockholders’ meeting on June 2, 2006. |
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| Assuming an unchanged market environment, Dräger Medical forecasts revenue growth of 5% to 7% and Dräger Safety growth of 3% to 5%. Overall, the Dräger Group expects to achieve revenue growth of 4% to 7% as well as a slightly greater increase in EBIT and net profit. |
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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 entail certain risks and uncertainties.
In this context, we would like to point out that the abovementioned information is based on preliminary figures. The statutory audit has not yet been completed.
Detailed audited figures for fiscal year 2005 will be disclosed on April 25, 2006 at the annual accounts press conference in Lübeck and at an analysts’ conference in Frankfurt am Main. On May 11, 2006, the Q1/2006 figures will be published. You will find all other financial dates on our website at www.draeger.com under Investor Center / Finance calendar
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(c) Drägerwerk AG & Co. KGaA, 2007 |
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