1st half of 2018 for the HOMAG Group: HOMAG with high capacity utilization
Schopfloch, August 9, 2018. In the first half of 2018, the HOMAG Group recorded an increase in sales over the previous year and once again achieved a high level of incoming orders. With capacity utilization remaining high, the world-leading supplier of integrated solutions for production in the woodworking industry and trade expects a positive development in the second half of the year and anticipates a rise in sales and earnings.
In the first half of 2018, the HOMAG Group's incoming orders reached € 701 million, a 4.4 percent drop (adjusted for exchange-rate effects: a 1.5 percent drop) from the previous year's all-time high (€ 734 million), which was equivalent to a 33 percent increase. The order backlog was worth € 658 million as at June 30, 2018 (6/30/2017: € 556 million). The HOMAG Group increased its sales to € 606 million (previous year: € 598 million). Operating EBIT, at € 41.5 million (previous year: € 48.1 million), was influenced by various factors. These include not only the introduction of a new ERP software and the associated delivery bottlenecks, but also a sustained high level of investment in digitization, the launch of new branding for the entire product range, a management fee paid to Dürr, and negative exchange-rate effects particularly from North America. As at June 30, 2018, the HOMAG Group had 6,567 employees (6/30/2017: 6,149 employees).
"Due to a temporary lower demand in the Chinese market, we remained in the first six months of 2018 significantly behind the exceptionally high level of incoming orders we had seen in the 1st half of 2017. In the other regions, however, we performed well, as anticipated. It is particularly in our project business where we expect the positive development to continue", explains CEO Pekka Paasivaara. "Moreover, in the first half of 2018 we implemented a modern ERP system at our largest site in Schopfloch, which temporarily affected our operating performance. Therefore, some additional expenses were required to ensure our ability to deliver", adds Paasivaara.
Note: The figures shown in this press release for the first half of 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.