04-09-2020 | Financial news | Press releases | Corporate & Ad-hoc news

paragon Quickly Outpaces the Coronavirus Crisis – Production Working Extra Shifts

Delbrück, September 4, 2020 – paragon [ISIN DE0005558696] delivered its half-year report today, confirming its positive outlook for the second half of the year. There is unexpectedly high demand for major paragon products in the wake of the rapid recovery of the Chinese market and increased vehicle sales by key customers. Having achieved a stable EBITDA margin in the first two quarters, the Management expects revenue at the prior year’s level in the second half of the year. The impact of the comprehensive cost reductions is also expected to have a considerable effect on earnings. Now that the company’s foundation is secure, Management raised its revenue forecast for 2020 and predicts a further recovery for 2021 and 2022, based on customer surveys and market analyses.

  • Rapid revenue recovery shows clear V shape – Impact of the shutdown less critical than assumed

  • Automotive revenue at € 50.0 million in the first half of the year (prior year: € 64.0 million) – Monthly revenue has again reached the prior year’s level

  • Half-year earnings at a similar level as the same period of the prior year despite coronavirus-related revenue decline – EBITDA margin at 6.8% (prior year: 8.0%)

  • EBITDA margin of 17% in June signals earnings potential – Cost-reduction measures are working

  • Positive outlook for a successful second half of the year – Revenue between € 60 and 70 million (prior year: € 71.4 million)

  • Forecast for the automotive business in 2020 raised: Revenue now between € 110 and 120 million with an EBITDA margin between 8 and 12% expected – Positive trend foreseeable for 2021 and 2022