Medion AG: Ad hoc notification pursuant to Section 15 German Securities Trading Act (WpHG)
MEDION has successfully completed business year 2007, while increasing both revenue and profits.
Based upon preliminary unaudited figures, the MEDION group increased its revenue by 3.3% to €1,658 million in fiscal year 2007.
MEDION was able to strengthen its market position in 2007 in the relevant sectors of Desktop-PCs/Notebooks, mobile navigation devices, and entertainment electronics. This can be attributed to successful product innovations and in particular to the new MEDIONlife design line introduced in Q4 2007 with its high quality, design-oriented products.
Thanks to the streamlining of the product mix, the structural measures that were undertaken, and the expansion of MEDION’s range of services, the group's earnings improved. Overall, the Management Board presumes that 2007 will produce a positive EBIT of approximately €28 million (approximately 1.7% of revenue), which is higher than the previous projection.
In the past fiscal year, MEDION has therefore already clearly exceeded the original revenue and profit goals set for 2007 and 2008.
The Management Board expects the stable trend to continue in 2008, and therefore anticipates revenue growth in the order of 3 to 5%, despite structurally-related price deterioration and a continued weak dollar/euro relationship. The operating EBIT margin is expected to improve even more to a level of approximately 2 to 2.5%.