DGAP-Ad hoc: Draegerwerk AG & Co. KGaA

DGAP-Adhoc: Drägerwerk AG & Co. KGaA: Dräger reports lower turnover in second quarter; EBIT on prior year level

Drägerwerk AG & Co. KGaA / Key word(s): Preliminary Results

14.07.2016 21:10

Disclosure of an inside information according to Article 17 MAR, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.

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Based on preliminary figures, Drägerwerk AG & Co. KGaA recorded net of currency effects a 0.9 percent (nominally -2.0 percent) increase in order intake year-on-year in the second quarter of 2016. Net sales declined net of currency effects by 6.3 percent (nominally -8.7 percent) to EUR 579.0 million. The gross margin stood at 45.5 percent (Q2 2015: 44.6 percent). The decline in net sales was nearly offset by a reduction in functional expenses. EBIT for the quarter stood at EUR 21.2 million, on par with the prior-year quarter (Q2 2015: EUR 21.7 million).

For the first half of the year, this resulted in a year-on-year increase in order intake of 0.5 percent net of currency effects (nominally -2.3 percent) and a decline in net sales by 3.3 percent net of currency effects (nominally -5.8 percent). The gross margin was 43.8 percent (6 months 2015: 45.8 percent). Compared to the prior-year period, functional expenses decreased net of currency effects by 5.0 percent (nominally -6.4 percent) due to the effects of the efficiency program in the first half of 2016. Total EBIT was EUR 5.5 million (6 months 2015: EUR 22.7 million). The EBIT margin fell from 1.9 percent in the prior-year period to 0.5 percent. Negative currency effects impacted the EBIT margin by roughly 2 percentage points.

Weak demand in South America and the Middle East is primarily responsible for the subdued business performance. Demand in many other European countries also failed to meet the strong prior-year figures.

For fiscal year 2016, Dräger continues to expect net sales growth of between 0.0 and 3.0 percent (net of currency effects) and an EBIT margin of between 3.5 and 5.5 percent.

Dräger will publish its full results for the first six months of the fiscal year on July 28, 2016.

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

Investor Relations: Thomas Fischler Tel. +49 451 882-2685 thomas.fischler@draeger.com

Corporate Communications: Melanie Kamann Tel. +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 Investor Relations / Financial Calendar at www.draeger.com for information on all important financial dates.

14.07.2016 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de

--------------------------------------------------------------------------- Language: English Company: Drägerwerk AG & Co. KGaA Moislinger Allee 53-55 23542 Lübeck Germany Phone: +49 (0)451 882-0 Fax: +49 (0)451 882-2080 E-mail: info@draeger.com Internet: www.draeger.com ISIN: DE0005550602, DE 000 555 063 6, DE 000 555 065 1, DE 000 555 067 7, DE 000 555 071 9 WKN: 555060, 555063 Vorzüge, 555065 Genussschein A, 555067 Genussschein K, 555071 Genussschein D Indices: TecDAX Listed: Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Hanover, Munich; Regulated Unofficial Market in Stuttgart; Terminbörse EUREX End of Announcement DGAP News-Service ---------------------------------------------------------------------------