paragon AG  / Key word(s): Quarter Results

30.09.2010 08:12

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Upturn at paragon continues

  - Sales up 16 percent on prior year

  - Restructuring having the planned effect

  - Sustained earnings growth

Delbrück, September 30, 2010 - The upturn at paragon AG, a publicly listed
supplier of parts to the automotive industry, is proving to be sustained.
In the period June 1 to August 31, 2010, the company generated sales of
EUR14.4 million, up 16 percent on the same period in the previous year
(EUR12.4 million).

Thanks to its positioning in niche markets, paragon has managed to
capitalize on the recovery in sales in the automotive industry following
the most profound crisis in the sector for decades. New orders have
stabilized at a high level with paragon plants operating at full capacity.

Thanks to the significant reduction in fixed costs brought about by the
restructuring, the extremely satisfactory growth in the operating business
and a substantial reduction of debt, paragon has been able to significantly
exceed the earnings figures of the previous year. In addition to the strong
growth in sales (up 16 percent), earnings were also boosted by the
relatively small increase in the cost of materials (up 7 percent) and the
significant reduction in personnel costs (down 19 percent).

EBIT increased - partly as a result of one-off items - from a loss of
EUR0.4 million in the same period of the previous year to plus EUR3.0
million; EBITDA rose correspondingly from EUR0.8 million to EUR4.3 million.
Even without the one-off items (further restructuring gains and
insolvency-related costs), EBIT and EBITDA are well into positive territory
at EUR2.1 million and EUR3.4 million respectively. This clearly
demonstrates that the company has used the insolvency to implement a
successful program of restructuring.

As at August 31, 2010, paragon employed 252 people plus 23 temporary staff.
Compared with the same date in the previous year, the number of employees
has declined (August 31, 2009: 265) and the number of temporary staff has
increased (August 31, 2009: 7). Since the end of the short financial year
on May 31, 2010, there has been a slight increase both in the number of
employees (from 247 to 252) and in the number of temporary staff (from 19
to 23).

For the 2010 financial year, the Managing Board of paragon AG had predicted
sales of EUR58 million and a strong operating profit (adjusted for
restructuring and insolvency costs) of EUR7.5 million.


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, cockpit systems, stepper motors, media interfaces and
control 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 revenue in excess of EUR58 million
with more than 300 employees.

paragon AG
Schwalbenweg 29
33129 Delbrück
Tel.: +49 (0)5250 97620
Fax: +49 (0)5250 976 260

Press Officer
Matthias Hack
Tel.: +49 (0)5250 976 2141
Cell: +49 (0)162 101 0724
Fax: +49 (0)5250 976 260

Corporate Communications
Marc Götte
Tel.: +49 (0)5250 976 2161
Fax: +49 (0)5250 976 260

30.09.2010 DGAP's Distribution Services include Regulatory Announcements, 
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Language:     English
Company:      paragon AG
              Schwalbenweg 29
              33129 Delbrück
Phone:        +49 (0)5250 97 62 - 0
Fax:          +49 (0)5250 97 62 - 60
ISIN:         DE0005558696
WKN:          555869
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Hamburg, München, Düsseldorf, Berlin, Stuttgart
End of Announcement                             DGAP News-Service