BERLIN (dpa-AFX) - German medical and safety technology provider Draegerwerk AG (DRWKF.PK) reported that its preliminary EBIT for the first quarter 2018 were about negative 40 million euros, compared to positive 2.3 million euros last year, mainly due to the low net sales volume, weak gross profit margin and adverse currency effects.
Order intake in the first quarter rose by roughly 2.6 percent net of currency effects (nominal: -2.8 percent) compared to the first quarter last year. Net sales declined by roughly 2.5 percent net of currency effects (nominal: -7.4 percent) to about 496 million euros.
Compared to the prior year's quarter, the regions Africa, Asia, and Australia (AAA) and the region Americas increased order intake net of currency effects. Demand increase in AAA was particularly strong. Net sales, by contrast, declined in all three regions. Moreover, the strengthening Euro caused pronounced negative currency effects, so that the net sales decline was significant in real terms.
For the full year, Draeger continues to expect net sales growth, net of currency effects, of between 2.0 and 5.0 percent and an EBIT margin of between 4.0 and 6.0 percent. Due to the restrained business development in the first quarter and currency effects, the EBIT margin is likely to come out in the lower range of the guidance.
The company said it will publish final results for the first three months of 2018 on April 26, 2018.
Copyright RTT News/dpa-AFX