Successful restructuring and strategic realignment

paragon AG / Final Results

12.08.2010 08:17

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.

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Delbrück, August 12, 2010 - CEO Klaus Dieter Frers confirmed the forecasts
for 2010 at the financial statements press conference for 2008, 2009, and
the stub period 2010 (period of insolvency from January 1 to May 31, 2010).
paragon, a listed company, has been operating profitably again since the
second quarter of 2009 following the slump caused by the crisis in the
automotive sector. For 2010, it is aiming for sales of EUR58 million and
adjusted EBITDA (excluding expenditure for restructuring and insolvency) of
EUR7.5 million.


After successfully getting over the insolvency paragon took numerous action
steps aimed at enabling it to operate profitably even in periods of poor
sales. This extensive action program led to a net saving of EUR11.4 million
in 2009 and will generate further savings of EUR14.4 million in 2010 and
subsequent years. Debt was significantly reduced; bank borrowings including
profit participation rights decreased by 67.5% from EUR69.8 million to
EUR22.7 million.

Right after getting over the insolvency paragon produced its financial
report for the stub period 2010 as well as the outstanding reports for 2008
and 2009. In 2008, it almost remained on budget with sales of EUR112.0
million, although it made an operating loss (EBIT) of EUR66.1 million due
to subsequent impairment losses related to the insolvency. The company then
felt the full effect of the automotive crisis in 2009 when it posted sales
of EUR67.3 million and an operating loss (EBIT) of EUR40.5 million, also
due to impairment losses. paragon turned the corner in 2010, with the first
five months proving to be very positive: Sales reached EUR25.1 million and
EBIT amounted to EUR100.3 million including restructuring gains.

paragon will present its strategic realignment and the results for 2008,
2009, and the stub period 2010 at the annual general meeting of
shareholders, which will take place on Thursday, September 30 at the
Stadthalle in Delbrück.

 

Portrait

Listed in the Prime Standard segment of Deutsche Börse in Frankfurt am
Main, paragon AG develops, produces, and distributes pioneering automotive
electronics solutions. The portfolio of this direct supplier to the
automotive industry includes products in the segments of air quality, drive
systems, acoustics, media interfaces and cockpit systems. One of its
stand-out products is the AQS air quality sensor, the clear global market
leader. With headquarters in Delbrück (North Rhine-Westphalia), the company
also has sites in Suhl (Thuringia), Nuremberg (Bavaria), and St. Georgen
(Baden-Württemberg). In the 2010 financial year, paragon aims to generate
sales of EUR58 million.

Contact
paragon AG
Schwalbenweg 29
33129 Delbrück
Tel.: +49 (0)5250 97620
Fax: +49 (0)5250 976 260
Website: www.paragon-online.de
Email: info@paragon-online.de

Press officer
Matthias Hack
Tel.: +49 (0)5250 976 2141
Cell: +49 (0)162 101 0724
Fax: +49 (0)5250 976 260
Email:  matthias.hack@paragon-online.de

Corporate Communications
Marc Götte
Tel.: +49 (0)5250 976 2161
Fax: +49 (0)5250 976 260
Email: marc.goette@paragon-online.de


12.08.2010 Ad hoc announcement, Financial News and Press Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:     English
Company:      paragon AG
              Schwalbenweg 29
              33129 Delbrück
              Deutschland
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 Hamburg, München, Düsseldorf, Berlin, Stuttgart
 
End of News                                     DGAP News-Service
 
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