paragon Reacts to Production Stoppages by Automotive Manufacturers and Temporarily Winds Its Own Production Down
Delbrück, Germany, March 19, 2020 – paragon [ISIN DE0005558696] is set to take immediate action in response to moves by automotive manufacturers to close their plants at short notice and to delivery stops of own suppliers, reducing production at its automotive manufacturing sites in Germany to a minimum for the time being. In order to minimize the impact of the looming coronavirus pandemic on employees and the company to the greatest extent possible, the company has submitted an application for a shorter working hours model that will also cover development and administrative departments within paragon Automotive proportionately. As the news is changing by the hour and it is difficult to estimate how the situation will develop for the company’s customers, it is currently impossible to predict what the impact on revenue and earnings forecasts will be.
Production stoppage at German automotive sites until mid-April for the time being – application for government-subsidized short-time work (Kurzarbeit) submitted
Management expects to see compensatory effects later on in the year once production is resumed
Effects on further business development currently not foreseeable - depending on the duration of the production stop