Draegerwerk cuts 2015 profit margin forecast, intensifies savings drive

Draegerwerk AG & Co KGaA

13/10/2015 19:43

FRANKFURT, Oct 13 (Reuters) - Draegerwerk  DRWG.DE  slashed 
its 2015 profit margin forecast for the second time this year 
and said it would intensify savings efforts, citing weak 
business in China and the United States as well as writedowns 
during the third quarter. 
    The German supplier of medical equipment and safety gear for 
miners and firefighters said it now expects its full-year 
earnings before interest and tax (EBIT) margin to stand at 
between 2.5 and 4.5 percent, down from its previous guidance of 
5 to 7 percent. 
    The company posted a loss before interest and tax of about 
23 million euros ($26.2 million) in the third quarter, burdened 
by about 20 million euros in writedowns on receivables and 
inventories as well as provisions for quality costs. 
    Draegerwerk said it would review its medium-term forecasts 
and look for additional cost cuts. 
    ($1 = 0.8790 euros) 
     
 
 (Reporting by Christoph Steitz; Editing by Pravin Char) 
 ((christoph.steitz@thomsonreuters.com; +49 69 7565 1269; 
Reuters Messaging: 
christoph.steitz.thomsonreuters.com@reuters.net)) 
 
Keywords: DRAEGERWERK RESULTS/