12-08-2019 | Financial news | Press releases | Corporate & Ad-hoc news

paragon is adjusting its forecast for 2019 due to weakness in the automotive industry and revenue delays at Voltabox

Delbrück, Germany, August 12, 2019 – paragon GmbH & Co. KGaA [ISIN DE0005558696] is adjusting its revenue and earnings forecast for the 2019 fiscal year. The essential reasons are increasing market weakness in the automotive industry and the corrected annual forecast for the publicly traded subsidiary Voltabox. In the automotive business, the changed product mix has had an unfavorable impact on profitability. At Voltabox, revenue delays are occurring in the U.S. business, while a temporary production stoppage is underway due to the conversion to the latest technology at an important cell supplier.

  • Restraint among OEM customers is depressing revenue in Sensors and Acoustics; Cockpit and Body Kinematics are above expectations

  • Additional costs for new products are burdening earnings at paragon movasys GmbH

  • The Voltabox subsidiary is reducing its revenue and earnings forecast due to revenue delays

  • For the year as a whole, Group revenue of € 200 million to € 210 million and a negative EBIT margin of around -1 to -2 % are planned

  • An extensive cost reduction program is being implemented