Stable business trend
- Sales rise by 12% to EUR 51.0 million
- Earnings rising even faster than revenue
- Forecasts by the Managing Board for 2011 will certainly be achieved
In the first nine months of 2011, paragon's sales rose by 12% to EUR 51.0 million (prior year: EUR 45.5 million). Earnings grew at an even faster rate; the operating margin (EBIT in relation to sales) reached 14.6% (prior year: 11.3%).
"The period from July 1 to September 30, 2011 was the best quarter to date in the current fiscal year, with sales of EUR 17.6 million," Chairman of the Board, Klaus Dieter Frers, commented on these gratifying corporate developments.
EBITDA rose by 20% to EUR 10.6 million (prior year: EUR 8.9 million); EBIT surged by 45% to EUR 7.5 million (prior year: EUR 5.2 million). The positive operational developments in the Company are evident from cash flow from operating activities, which rose to EUR 6.1 million in the first nine months (prior year: EUR 1.9 million). As at September 30, 2011, paragon posted net income for the year according to IFRS of EUR 4.6 million (prior year: EUR 4.2 million); earnings per share rose by 9% to EUR 1.13 (prior year: EUR 1.03).
The Managing Board finds the disappointing evolution of the share price vexing, since in its opinion, it does not reflect the Company's very positive development.
As at September 30, 2011, paragon AG employed 343 of its own workers and 57 temporary workers, all of whom were active in Germany alone. This implies a slight increase in the number of employees vis-à-vis the previous year (September 30, 2010: 308 workers and 32 temporary workers). This increase can be traced to the Company's positive operating developments in conjunction with the robust economy in the automotive industry. As at September 30, 2011, the following employee numbers apply to the individual sites (employees/temporary workers): Delbrück (57/0), Suhl (199/46), Nuremberg (27/4) and St. Georgen (60/4).
paragon made a successful appearance at the International Motor Show (IAA) held at Frankfurt in September. The Company presented appealing innovations in the field of the man-machine interface (including the cTablet Docking Station, which integrates a tablet computer into the vehicle), as well as, for the first time, the overall electro-mobility system.
"paragon intends to ensure that the performance of the first nine months is reflected in the performance of 2011 as a whole. Forecast sales of EUR 65 million will certainly be achieved," Chairman of the Board Klaus Dieter Frers envisions. Despite considerable investment in personnel and technology, earnings figures for the course of business over the entire year will develop correspondingly.
paragon is ahead of plan in the repayment of bank debt, which stood at EUR 16.3 million as of September 30, 2011 and is to be reduced to EUR 15 million by December 31, 2011. At the same time, the Managing Board is confirming the objective for an increase in free cash flow, which should grow to EUR 8 million by the end of the year.
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).