Medion AG: Ad-hoc announcement in accordance with § 15 of the German Securities Trading Act (WpHG)
According to preliminary figures, in fiscal year 2008 (01/01/2008 - 12/31/2008), the MEDION Group increased its earnings before interest and taxes (EBIT) by about 20% to €34.4 million (2007: €28.5 million). Because of lowered volume in several key European markets toward the end of the 4th quarter of 2008, revenue declined from €1.659 billion to €1.613 billion. The improvement in earnings compared to the previous year is primarily due to the optimized portfolio of products and services. In particular, the new Designline supported by targeted marketing activities was well received in the market.
The significant worsening of the prospects for economic growth and consumption in the eurozone and the great difficulty in forecasting economic conditions at the present time make any projection for the current fiscal year extremely uncertain. Due to the cautious order behavior of significant MEDION customers for the 1st and 2nd quarter of 2009, revenue is expected to decline in the first six months of 2009. The economy in the eurozone and in Germany in particular is generally expected to recover in the second half of 2009. MEDION’s revenues can then be expected to stabilize.
Nonetheless, the MEDION Group will continue to be clearly profitable in 2009 despite the well-known difficulties in the economic environment. MEDION’s sound financial position and equity-to-assets ratio exceeding 50% will make further successful development of the business model possible. Especially the portfolio of design-oriented products and the service business will be expanded.