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- Consolidated net profit up 24.0 percent to EUR 73.9 million
- EBIT (before non-recurring expenses) up 15.6 percent to EUR 148.2 million
- Order intake up 10.0 percent to EUR 1,865.0 million
- Revenues up 10.5 percent to EUR 1,801.3 million
- Key performance indicators remain stable
- Higher dividends proposed
- Statutory audit not yet completed
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| Lübeck, February 22, 2007 – The Dräger Group achieved order-intake and revenue highs yet again in fiscal year 2006. Order intake climbed 10.0 percent to EUR 1,865.0 million (2005: EUR 1,695.9 million) and revenues by an even greater 10.5 percent to EUR 1,801.3 million (2005: EUR 1,630.8 million). |
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| Both subgroups contributed to this sound performance, holding up well in the tough competitive environment and reinforcing their positions in key markets. Order intake in the major regions of Europe excluding Germany (up 13.2 percent), and the Americas (up 17.5 percent), developed very well. In the Americas, projects in Latin America made a significant contribution to growth. Order intake in the difficult German market was up 3.0 percent year on year. Only in the Asia/Pacific region did order intake fall in 2006 (down 5.6 percent). This was mainly attributable to local factors facing Dräger Medical in the Chinese market. |
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| In fiscal year 2006, the Dräger Group’s net profit climbed another 24.0 percent to EUR 73.9 million (2005: EUR 59.6 million). This equates to a net profit margin of 4.1 percent (2005: 3.7 percent). EUR 30.3 million of the net profit is attributable to minority interests (2005: EUR 22.7 million) and EUR 43.6 million to shareholders of Drägerwerk AG (2005: EUR 36.9 million). This produces earnings per common share of EUR 3.41 and earnings per preferred share of EUR 3.47, a year-on-year increase of EUR 0.54 in both cases. |
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| EBIT (before non-recurring expenses) also continued its very positive trend in fiscal year 2006, climbing 15.6 percent to EUR 148.2 million (2005: EUR 128.2 million). This rise was once again proportionately higher than the revenue growth recorded for the fiscal year, and was driven by increased revenues, a higher gross margin and a proportional rise in other costs. The Dräger Group’s EBIT margin rose to 8.2 percent (2005: 7.9 percent). Dräger Safety was particularly successful in this regard, recording an increase in its EBIT margin from 8.5 percent to 9.3 percent. Dräger Medical weathered the tough competition to maintain its EBIT margin at 9.1 percent from the prior year. |
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| The interest expenses incurred by the Dräger Group increased in fiscal year 2006 due to higher average borrowing, the slight rise in market interest rates and increased project financing costs at Dräger Medical. By contrast, the tax load ratio for income taxes dropped again year on year from 38.6 percent to 35 percent. |
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| Jan. to Dec.
2006
| Jan. to Dec.
2005
| Change
Revenues
Group
Medical
Safety |
€1,801.3 million
€1,239.2 million
€589.1 million |
€1,630.8 million
€1,106.4 million
€557.8 million |
+10.5 %
+12.0 %
+5.6 % |
EBIT (before
non-recurring expenses)
Group
Medical
Safety |
€148.2 million
€112.7 million
€54.9 million |
€128.2 million
€100.7 million
€47.2 million |
+15.6 %
+11.9 %
+16.3 % |
| Consolidated net profit |
€73.9 million |
€59.6 million |
+24.0 % |
Earning per
preferred share
after minority interests
Non-recurring effect |
€3.47
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€2.93
€0.41 |
+18.4 %
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| In fiscal year 2006, the Dräger Group’s total assets increased by EUR 100.1 million to EUR 1,636.3 million (2005: EUR 1,536.2 million). |
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| This increase is mainly attributable to trade receivables, which rose by EUR 76.9 million due to the increase of some EUR 170 million in revenues, the high sales volumes in the last two months of the fiscal year, the regional structure of orders and project-work-related effects, especially at Dräger Medical. The rise in non-current assets mainly relates to the new Dräger Medical building but also to investments in the purchase and development of commercial software. |
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| It was pleasing to see that inventories were maintained at a constant level despite the increase in business volume. The steps taken by Dräger Medical had a very positive effect in this regard. The additional assets were financed by the increase in equity and current provisions in fiscal year 2006 as well as by the increase in other current liabilities. |
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| At EUR 254.5 million, net financial debt thus remained more or less unchanged on the prior year (2005: EUR 255.8 million). As of December 31, 2006, net financial debt was 1.3 x EBITDA (2005: 1.4 x EBITDA). |
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| The EUR 540.0 million in equity covers non-current assets entirely. Taking all other non-current debt and pension provisions into account, the Group’s inventories and 45 percent of its trade receivables are also financed. |
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| Due to the increase in assets and a parallel rise in non-interest bearing liabilities, capital employed (consolidated assets excluding cash and cash equivalents and deferred taxes minus non-interest bearing liabilities) only rose by EUR 25.4 million to EUR 910.8 million. |
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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 EUR 0.49 per common share (prior year: EUR 0.44) and EUR 0.55 per preferred share (prior year: EUR 0.50) and submit this proposal for resolution at the annual shareholders’ meeting on May 11, 2007. |
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| The strengthening of the Dräger brand worldwide will continue to be a prime objective this year. By continuously improving all of our group processes and offering an innovative product range, we will ensure that both subgroups are a reliable partner for our customers and have a solid basis for further expanding our position in the respective markets. The Dräger Group expects to face increasing challenges in fiscal years 2007 and 2008. As such, we will continue to pursue our action plan to increase productivity throughout the Group and in both subgroups. |
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| Given the positive performance in fiscal year 2006, the Dräger Group’s overall aim in 2007 and 2008 is to head off the increasing competition with further growth and increased earnings. |
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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 2006 will be disclosed on March 29, 2007 at the annual accounts press conference in Lübeck and at an analysts’ conference in Frankfurt am Main. The Q1/2007 figures will be published on May 8, 2007. You will find all other financial dates on our website at www.draeger.com under Investor Center/Financial Calendar.
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