MEDION AG
Medion AG: Lower earnings forecast – Dividend payment planned
Ad hoc announcement transmitted by DGAP.
The issuer is solely responsible for the content of this announcement.
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MEDION AG: Lower earnings forecast
Dividend payment planned
The earnings before interest and taxes (EBIT) reported by MEDION AG for fiscal
2005 will be significantly lower than the figure anticipated by the capital
market. The company expects to report EBIT in the order of EUR 19 million on
sales of around EUR 2.5 billion for 2005.
The main reasons for the sharp fall in EBIT are the difficult consumer and
market environment as well as the fact that MEDION AG’s Board of Management –
in agreement with the Supervisory Board – plans the discontinuation of
unprofitable product lines and order structures. This goes along with a
necessary restructuring of MEDION’s product management and sales activities
which has depressed the company’s results in 2005. The year-on-year rise in
service costs and other selling expenses has also depressed the company’s
earnings.
MEDION AG is currently examining possible ways of paying its shareholders a
higher dividend than arithmetically possible on the basis of its earnings
projections.
The Board of Management is forecasting lower sales in 2006 due to the
discontinuation of unprofitable sales revenues and the persistently difficult
economic situation in Germany and key international markets.
Medion AG
Gänsemarkt 16 – 18
45127 Essen
Deutschland
ISIN: DE0006605009 (MDAX)
WKN: 660 500
Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-
Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart
End of ad hoc announcement (c)DGAP 06.01.2006
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