Drägerwerk invests in efficiency and innovation
Medical business in US impacts earnings
"We will invest substantially in research and development in 2008 in order to extend our position as a technology and innovation leader". This statement was made by Stefan Dräger, Chairman of the Executive Board of Drägerwerk AG. Better use will also be made of synergies between the two divisions, Medical and Safety.
According to the company, business in the Safety division continued to perform exceedingly well during the year to date. Order intake after nine months was up 17.2 percent and revenues were up 12.0 on the prior year, while EBIT grew 14.5 percent. Revenues and earnings in the Medical division were also higher year on year in almost all countries and regions. However, two exceedingly big projects were completed in the comparable prior-year period. In addition, earnings were affected by Medical's business in the US, where growth targets were not achieved. All in all, order intake after nine months was down 3.7 percent and revenues were down 1.5 on the prior year, while EBIT decreased 21.9 percent.
As adopted at the annual shareholders' meeting on May 11, 2007, the change in legal form to that of an association limited by shares, which will give the Company greater financing and operating leeway, will soon be registered. A shareholder brought an action to set aside the resolution to change the legal form or, alternatively, to have it declared null and void. During court approval proceedings, Lübeck District Court and Schleswig Regional Court of Appeal ruled that the action brought does not prevent the registration of the change in legal form. The Company expects the new legal form to be registered and thus become effective in the fourth quarter of the current fiscal year.
"We will invest extensively in order to strengthen Drägerwerk AG as a technology and innovation leader", said Executive Board Chairman Stefan Dräger upon presentation of the Q3/2007 report. "In doing so, our focus will not be on quarters but on the medium and long term, so as to create sustainable value for customers, employees, shareholders and the Company", said Stefan Dräger. To boost growth and profitability, the Company will add numerous innovations to its portfolio and expand its global sales and service organization. Comprehensive, value-based action plans are currently being drawn up for North America and other regions. At the same time, shared services within the Group as a whole are being expanded with a view to further improving efficiency and quality. "In fiscal years 2008 to 2010, we intend to invest a considerable amount in improving the added value of the entire Group", said Stefan Dräger.
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