LÜBECK (dpa-AFX) - The medical and safety technology group Drägerwerk has made a weaker start to the new year. Sales in the first quarter fell by 3.3 percent year-on-year to around EUR 736 million, as the company announced on Monday after the close of trading. At 15 million euros, earnings before interest and taxes (EBIT) were just over half as high as a year ago. In the first quarter of 2023, catch-up effects due to improved delivery situations and a surge in demand for ventilators from China had provided a tailwind. Both effects were now missing. The company confirmed its annual targets. The share price subsequently fell by half a percent, although it had already fallen significantly in the main business.

However, demand remained high overall, the company added. Incoming orders rose by 0.9 percent to around 811 million euros. In the safety technology segment, orders rose by 5.5 percent, while in the medical technology segment they fell by 2.5 percent.

Drägerwerk's management believes it is on track to achieve its targets for the year. It continues to expect 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% at the start of the year, things should therefore improve from now on.

The full results for the first three months of the financial year are to be published on April 25, 2024 /mis/bek/he