Dräger countering negative earnings trend by launching turnaround program
Reduction in non-personnel and personnel costs as well as optimization of revenues planned
Earnings in the safety division are being affected by a higher proportion of public sector orders and a corresponding decline in the share of industrial sector orders. The medical division is being impacted by currency effects as well as a shift towards less profitable portfolio components. Both divisions are recording a considerable shift towards growth markets which again only offer low margins.
Stefan Dräger, Chairman of the Drägerwerk AG & Co. KGaA Executive Board: "All in all even a moderate decline in net sales would result in a dramatic decline in earnings in 2009 if no counter measures were taken. As a result, we are going to be very determined in the implementation of our turnaround program. This will put us in a position to generate positive earnings even in a more challenging environment and to continue making investments into renewing our product portfolio, enhancing quality and accessing growth markets. The overall package will make Dräger even more competitive and therefore safeguard jobs in the long-term."
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