paragon raises its profit forecasts

paragon AG / Key word(s): Half Year Results 10.08.2011 08:42 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- 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. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- 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 ---------------------------------------------------------------------------