paragon raises its profit forecasts

paragon AG  / Key word(s): Half Year Results

10.08.2011 08:42

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Delbrück, August 10, 2011 - paragon AG continues to thrive in the first
half of 2011. At EUR 33.4 million in sales, the publicly listed direct
supplier to the automotive industry has achieved sales growth of 10% (prior
year: EUR 30.4 million).

Earnings indicators developed better than planned. EBITDA increased by 28%
to EUR 7.0 million (prior year: EUR 5.5 million) and EBIT by as much as 61%
to EUR 4.9 million (prior year: EUR 3.0 million).

Net income for the year according to IFRS, showing a hike of 20% to a
figure of EUR 3.6 million (prior year: EUR 3.0 million), also rose at a
significantly more rapid rate than sales. Earnings per share rose at the
same pace to EUR 0.87 (prior year: EUR 0.73). Operating cash flow, an
indicator for operational growth, rose by EUR 1.6 million to EUR 4.3
million (prior year: EUR 2.7 million).

Due to the mid-year results, the Managing Board, which had previously
assumed modest growth for 2011, is raising its forecast for the current
fiscal year. Currently the Company's management anticipates sales of EUR 65
million, despite the still pending plant holiday and Christmas, an increase
of 8% compared to the prior year (total 2010: EUR 60.4 million).

 With a gross margin of 50% and EBIT of 11%, both in relation to sales,
paragon hopes to once again achieve earnings well in excess of industry
comparisons in 2011. Free cash flow should rise to EUR 8 million by the end
of 2011; in parallel the Company wants to reduce bank liabilities to EUR 15
million as at December 31, 2011.

Portrait

paragon AG, listed in the Prime Standard of Deutsche Börse in Frankfurt
develops, produces and markets innovative solutions in the field of
automotive electronics. The portfolio of this direct supplier to the
automotive industry includes products in the field of air quality, power
train, acoustics, cockpit, stepper motors, media interfaces and controls.
One excellent product is the undoubtedly world leading air quality sensor,
AQS. Apart from its headquarters in Delbrück (North Rhine-Westphalia) there
are branches in Suhl (Thuringia), Nuremberg (Bavaria) and St. Georgen
(Baden-Württemberg).

Contact

paragon AG
Schwalbenweg 29
33129 Delbrück
Tel.: +49 (0) 52 50 - 97 62-0
Fax: +49 (0) 52 50 - 97 62-60
Internet: www.paragon-online.de
Email: info@paragon-online.de

Press officer
Matthias Hack
Tel.: +49 (0) 52 50 - 97 62-141
Mobile: +49 (0) 162 1010724
Fax: +49 (0) 52 50 - 97 62-60
Email:  matthias.hack@paragon-online.de


10.08.2011 DGAP's Distribution Services include Regulatory Announcements, 
Financial/Corporate News and Press Releases.
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Language:     English
Company:      paragon AG
              Schwalbenweg 29
              33129 Delbrück
              Germany
Phone:        +49 (0)5250 97 62 - 0
Fax:          +49 (0)5250 97 62 - 60
E-mail:       investor@paragon-online.de
Internet:     www.paragon-online.de
ISIN:         DE0005558696
WKN:          555869
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, Hamburg, München, Stuttgart
 
End of Announcement                             DGAP News-Service
 
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