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ots Ad hoc-Service: Medion AG <DE0006605009>

Mülheim (ots Ad hoc-Service) -

Ad hoc-announcement edited and sent by DGAP. The sender is solely
responsible for the contents of this announcement.
Sales +53.6 %, net earnings +52 %, bonus shares (relation 1:1)
MEDION was again able to grow faster than the general market growth
in consumer electronics business in its short fiscal year 2000
(01.07.2000 - 31.12.2000). Compared to the relevant six months in the
previous fiscal year, sales rose by 53.6 % from Euro 675 M (DM 1.320
bn) to Euro 1.037 bn (DM 2.028 bn.). Earnings per share according to
the DVFA/SG formula went up by 52 % from Euro 0.79 to Euro 1.20. The
Supervisory and Management Boards propose to the Annual General
Meeting to issue bonus shares (relation 1:1). We would like to
emphasize that the successful cooperation between MEDION and Hewlett
Packard has been extended by the development and marketing of the
consumer PC-range "HP Pavilion" for the German market. In the U.S.,
the world's largest consumer market, the "HP Pavilion PC" is
undisputed market leader in the consumer PC segment with a market
share of more than 40 %. The new business model between MEDION and
Hewlett Packard, which has been specifically established for the
German market, might be widened to further European countries at a
later stage.
Strong international business With its full-service-concept MEDION
was in 2000 active in 11 European countries already. In the relevant
period foreign sales were more than doubled from Euro 69 M (DM 135 M)
to Euro 145 M (DM 284 M). Thus foreign exposure was lifted from 10 %
to 14 % compared to the past relevant period. At the end of the year
2000, MEDION has taken first initiatives in the US market. It is our
target to transfer the MEDION-concept to the country of unlimited
opportunities in the medium-term future. With a sales volume of Euro
102 M on total (DM 200 M), innovative products such as DVD players,
PDAs, flat screen monitors and 100 Hz- widescreen-televisions
contributed significantly to the overall growth. The bundling of
internet-, ISDN-, tariff- and mobile phone offers with hardware sales
campaigns also developed very successfully and delivered considerable
earnings contributions. The growing acceptance of our comprehensive
marketing- service concept in Germany and Europe constitutes an
excellent platform. Further growth will be fueled by proper
investments in widening our European activities, in identifying new
trend products with the help of our worldwide supply network and in
the expansion of the New Media segment.
End
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