Financial year 2018: HOMAG Group achieves record result
Schopfloch, February 28, 2019. In fiscal year 2018 the HOMAG Group further increased its sales and achieved a record result. The company was particularly successful in selling large systems for furniture production.
Preliminary figures show that the HOMAG Group increased its sales by 6.5 percent to € 1,298 million (previous year: € 1,219 million). The order backlog was worth € 602 million as of December 31, 2018 (12/31/2017: € 561 million) and incoming orders reached € 1,337 million, the second highest figure in the company's history. It was slightly down from the previous year (€ 1,366 million), when the HOMAG Group had achieved an exceptionally strong 17-percent growth in incoming orders. As of December 31, 2018, the HOMAG Group had 6,593 employees (12/31/2017: 6,371).
In terms of operating EBIT, the HOMAG Group reached an all-time high of € 94.9 million (previous year: € 91.7 million), despite negative exchange rate effects and a management fee payable to Dürr for the first time. "We were able to overcome numerous challenges in 2018", highlighted CEO Pekka Paasivaara. "These included the SAP-based modernization of the IT systems and the reorganization of production at our largest plant in Schopfloch. Given these issues, we are satisfied with the achieved results."
The HOMAG Group was particularly successful in selling large systems for furniture production and won several major projects in the kitchen industry in Germany. "This also contributed to our very positive business performance in Europe and our double-digit percentage growth in Germany", says Paasivaara. "In China, systems business calmed down temporarily, following the strong years of 2016 and 2017."
The HOMAG Group is looking forward to the LIGNA trade fair, which is due to take place in Hanover in May. Pekka Paasivaara: "We will have over 5,000 m² of exhibition space to engage with customers from both smaller carpenter shops and large industrial companies, and to explain and demonstrate our comprehensive range of solutions. We will present ready to use concepts that enable our customers to meet today's market requirements and future trends. Following the digital vision we presented at LIGNA 2017, we have developed specific solutions, including smart digital assistants, which already offer our customers a real benefit today."
Note: The figures shown in this press release for the 2017 have been adjusted compared to the initial publication due to the first-time application of IFRS 15.
This press release contains certain statements relating to the future. Futureoriented statements are all those statements that do not pertain to historical facts and events or expressions pertaining to the future such as "believes", "estimates", "assumes", "forecasts", "intend", "may", "will", "should" or similar expressions. Such future-oriented statements are subject to risks and uncertainty since they relate to future events and are based on current assumptions of the Company, which may not occur in the future or may not occur in the anticipated form. The Company points out that such future-oriented statements do not guarantee the future; actual results including the financial position and the profitability of the HOMAG Group as well as the development of economic and regulatory framework conditions may deviate significantly (and prove unfavorable) from what is expressly or implicitly assumed or described in these statements. Even if the actual results of the HOMAG Group including the financial position and profitability as well as the economic and regulatory framework conditions should coincide with the future-oriented statements in this press release, it cannot be guaranteed that the same will hold true in the future.