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Drägerwerk shares drop following weak quarterly operating results
Drägerwerk shares experienced a significant decline of nearly 15 percent following the release of preliminary quarterly results that showed weak operating performance. In the third quarter, EBIT fell to 48 million euros from 56.7 million euros in the previous year, with an EBIT margin decreasing from 6.8 to 5.6 percent. Analysts noted that the reported results were bolstered by 20.1 million euros in customs refunds; without these, the operating margin would have been significantly lower at 3.3 percent.
Despite the immediate stock drop, the company's management maintained its full-year guidance, including a target EBIT margin of 6.0 to 8.0 percent. Growth is being driven by a strong increase in orders, which rose 8.2 percent to 926 million euros, particularly within the safety technology division which saw a 20 percent increase in orders.
Additionally, the medical technology segment may benefit from the FDA lifting existing restrictions on patient monitoring in the United States, potentially facilitating easier market access and scaling for the company’s medical products.
Entities
Drägerwerk · FDA · Germany · MWB Research · United States
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] The previous year's EBIT was nearly 57 million euros.
- [● 2 SOURCES] Drägerwerk's share price fell by nearly 6 percent in after-hours trading.
- [● 3 SOURCES] Drägerwerk's EBIT fell to approximately 48 million euros in the third quarter.
- [● 3 SOURCES] Incoming orders rose by 8.2 percent to 926 million euros.
- [● 2 SOURCES] Management maintained the annual guidance.
- [● 3 SOURCES] The EBIT included 20.1 million euros from customs refunds.
- [● 3 SOURCES] Revenue increased by 2.1 percent to approximately 851 million euros.