DGAP-Ad hoc: Draegerwerk AG & Co. KGaA

DGAP-Adhoc: Drägerwerk AG & Co. KGaA: Dräger reports negative earnings in first quarter

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

14.04.2016 21:39

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.

---------------------------------------------------------------------------

Ad hoc report in accordance with Sec. 15 of the German Securities Trading Act

Drägerwerk AG & Co. KGaA: Dräger reports negative earnings in first quarter

Based on preliminary figures, Drägerwerk AG & Co. KGaA concluded the first quarter of 2016 with a negative result. Earnings performance had been expected to be sluggish at the start of the year due to low order intake in the fourth quarter 2015. There is no change to the previous full-year forecast.

Order intake declined by 2.5 percent year on year in the first quarter. In terms of net sales, Dräger recorded a decline of 2.4 percent to EUR 532.4 million (Q1 2015: EUR 545.5 million). Net of currency effects, order intake and net sales both rose marginally by 0.2 percent.

Business development according to the new regional segments was as follows: Performance in the Europe region was positive, particularly as a result of solid net sales development in Germany. Compared to the same quarter in the prior year, net sales in Europe rose by 2.6 percent (net of currency effects). By contrast, net sales fell in the two other regions. In the Americas region, net sales decreased by 3.6 percent net of currency effects, particularly due to the decline in Mexico and USA. Net sales in the Africa, Asia and Australia region fell by 2.0 percent net of currency effects, although business in China experienced positive development.

The gross margin for the first three months of the year came to 42.0 percent (Q1 2015: 47.3 percent). The significant decline in the gross margin was particularly due to negative currency effects. Negative mix and price effects also impacted the gross margin.

Functional costs declined by 5.6 percent year on year in the first three months of 2016; this equates to a decline of 4.2 percent net of currency effects. Restructuring expenses in the amount of EUR 2.6 million are included in the functional cost (Q1 2015 EUR 3.7 million).

Group EBIT came to approximately EUR -16 million (Q1 2015: EUR 1.1 million), which corresponds to an EBIT margin of -2.9 percent (Q1 2015: 0.2 percent).

Dräger continues to expect full-year net sales growth of between 0.0 and 3.0 percent (net of currency effects) along with an EBIT margin of between 3.5 and 5.5 percent. For 2016 we expect a lower full-year gross margin compared to 2015. On the other hand functional costs are expected to fall due to the positive effects of the efficiency program.

Dräger will publish its full results for the first three months of the fiscal year on April 26, 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.

14.04.2016 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and 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 ---------------------------------------------------------------------------