Second quarter of 2009: Drager increases order intake and net sales.

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Currency effects and change in product mix impact earnings

R&D expenditure rises to 8.4 percent of net sales

Free cash flow improved

Net debt lowered

Turnaround program being implemented

Lubeck, Germany - Dragerwerk AG & Co. KGaA recorded a rise in order intake in the second quarter of 2009, which almost made up for the weak level of orders in the first quarter. At EUR 484.2 million, the Company exceeded the prior-year figure by 10.0 percent in the second quarter, net of currency effects. Net sales of EUR 468.7 million in the second quarter were also an improvement on the prior-year period (up 2.2 percent net of currency effects), as were net sales for the entire first half at EUR 893.9 million (up 3.0 percent net of currency effects).

Change in product mix impacts gross margin Earnings, on the other hand, continued to come under pressure due to currency effects and stiffer competition as well as a shift in the …