LÜBECK (dpa-AFX) - The medical and safety technology group Drägerwerk has made a weaker start to the new year. However, catch-up effects due to improved delivery situations and a surge in demand for ventilators from China had provided a tailwind a year ago, as the company announced on Monday after the close of trading. At that time, China was struggling with a sharp rise in respiratory diseases following the lifting of the coronavirus measures. Both effects were now missing, Drägerwerk said. The Group confirmed its annual targets. Analysts were positive about the results. Nevertheless, the share price fell on Tuesday in a generally very weak market environment.

The share price fell by 1.2 percent to 49.50 euros in the morning. The small cap index SDax fell by 1.6 percent. Drägerwerk shares extended their losses of the past two trading days and fell to their lowest level in almost four weeks.

Drägerwerk's net sales fell by 3.3 percent year-on-year to around EUR 736 million in the first quarter. At 15 million euros, earnings before interest and taxes (EBIT) were a good half as high as a year ago.

The key data underpinned the ongoing improvement in the operating profit margin, wrote analyst Alexander Galitsa from Hauck Aufhäuser Investment Banking in an initial assessment. The company reported a profit, although the first quarter is usually the weakest and often results in an operating loss. Even adjusted for the effects of the special sales of ventilators in China a year ago, the operating margin improved slightly. Drägerwerk is benefiting from good cost control.

Demand remained high overall, the company added. Order intake rose by 0.9 percent to around 811 million euros. In the safety division, orders increased by 5.5 percent, whereas in the medical division they fell by 2.5 percent. Drägerwerk's management believes it is on track to achieve its targets for the year. It continues to anticipate a currency-adjusted increase in net sales of 1.0 to 5.0 percent - after revenue of EUR 3.37 billion in 2023. On this exchange rate-adjusted basis, the decline in the first quarter of the year amounted to 2.6 percent.

The profit margin before interest and taxes is expected to reach 2.5 to 5.5 percent for the year as a whole. After around 2.0 percent at the start of the year, things should therefore improve from now on. Analyst Galitsa even sees room for improvement in the margin target.

The full results for the first quarter are to be published on April 25 /mis/mne/jha/.