CORRECTED-Draegerwerk shares drop as euro strength hits profits

Tue Jul 15, 2014 4:39am EDT

(Corrects second paragraph to show sales outside Europe account for almost half of group revenues, not more than half)

FRANKFURT, July 15 (Reuters) - Shares in Germany's Draegerwerk dropped 13 percent to a 20-month low on Tuesday after the medical safety technology company issued its second profit warning this year, citing a strong euro, and said it would review its medium-term targets.

Draegerwerk has suffered from the strong euro because it makes most of its products - which range from incubators for premature babies to surgical lights and breathing air systems for fire fighters - in Europe but generates almost half of its sales outside its home continent.

It had already warned in May that its business environment was becoming more difficult and now said it expected its margin on earnings before interest and tax (EBIT) to come to between 4.5 percent and 6.5 percent this year, compared with previous expectations for 8 to 10 percent. (Reporting by Maria Sheahan; Editing by David Holmes)

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