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MIFA on Target: Less Bikes, More Profit

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SANGERHAUSEN, Germany – Bike manufacturer MIFA is reporting a 10.8% decline in bike sales over the first nine months of 2008 related to the same period in 2007. The turn-over decreased by 8.4% to 85.32 m. MIFAs new strategy is leading to a strong increase of its EBIT

MIFA on Target: Less Bikes, More Profit

SANGERHAUSEN, Germany – Bike manufacturer MIFA is reporting a 10.8% decline in bike sales over the first nine months of 2008 related to the same period in 2007. The turn-over decreased by 8.4% to € 85.32 m. MIFA’s new strategy is leading to a strong increase of its EBIT (earnings before interest and tax) of 37% to € 4.86 m.

Between January and October this year MIFA sold 676,000 bikes. In the same period over 2007, the company sold 758,000 units. According to MIFA these figures underline the success of its new strategy which is to pursuit a rising profitability and aiming at orders with more margins.

Growing Export

MIFA is increasingly successful in export. In the reported period the export share in the overall turn-over increased from 7% last year to 28% in 2008.

The key factor of MIFA’s success lies in the growing EBITDA margin. The Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) went up from 5.5% in 2007 to 7.9% over the first nine month in 2008.

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