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HOMAG Group able to significantly improve earnings

Operative EBITDA rises by 25 percent in the third quarter of 2012 | Sales revenue forecast for 2012 slightly increased

in EUR millionQ3 2012 Q3 2011Change 
Order intake124.9129.0-3.2%
Sales revenue195.5204.6-4.4% 
Operative EBITDA21.517.1+25.1%
EBT9.96.0+64.1%
Net profit for the period (after
non-controlling interests)
5.72.7+106.8%

HOMAG Group, the world’s leading manufacturer for plant and machinery for the woodworking industry and for cabinet makers, performed better in sales revenue and order intake than the industry in the third quarter of 2012 and was additionally able to significantly improve earnings. While order intake from German manufacturers of woodworking machinery was down 10 percent overall between July and September, the order intake of EUR 124.9 million at the HOMAG Group was only down 3.2 percent on the prior year (EUR 129.0 million). CEO Dr. Markus Flik views this order situation as positive, especially in light of the consistent management of earnings. “We see this as a sign of customers’ great confidence in our products. We were able to generate this order intake, although we paid special attention to the margin in the acquisition of projects.”

In the third quarter of 2012, sales revenue decreased slightly to EUR 195.5 million (prior year: EUR 204.6 million). Adjusted for the respective share allocable to the large-scale project Mekran, this results in a 2.6 percent rise on the prior year. 

The earnings figures of the HOMAG Group improved considerably in the reporting quarter. CFO Hans-Dieter Schumacher sees this as confirmation of the effectiveness of the measures taken to enhance operating performance even in a difficult market environment. For instance, operative EBITDA before employee participation expenses and before extraordinary expenses increased by approximately 25 percent to EUR 21.5 million (prior year: EUR 17.1 million). This corresponds to an operative EBITDA margin of 11.0 percent (prior year: 8.4 percent). EBT after employee participation expenses and after extraordinary expenses improved by around 64 percent to EUR 9.9 million (prior year: EUR 6.0 million). At EUR 5.7 million, the net profit for the period after non-controlling interests more than doubled (prior year: EUR 2.7 million), and leads to earnings per share of EUR 0.36 (prior year: EUR 0.17).

Primarily on account of the continued realization of restructuring measures at several subsidiaries, the Group headcount decreased to 5,085 employees as of September 30, 2012 (prior year: 5,147 employees).

First to Third Quarter 2012
Sales revenue at the HOMAG Group decreased slightly in the first nine months of 2012 to EUR 571.5 million (prior year: EUR 578.9 million). Adjusted for the respective share allocable to the large-scale project Mekran, this results in a rise in sales revenue to EUR 561.8 million (prior year: EUR 553.9 million). Order intake decreased to EUR 452.1 million in the reporting period (prior year: EUR 468.1 million). By contrast, the earnings situation in the HOMAG Group improved significantly between January and September 2012. Operative EBITDA before employee participation expenses and before extraordinary expenses climbed to EUR 52.4 million (prior year: EUR 45.7 million). EBT after employee participation expenses and after extraordinary expenses rose to EUR 18.2 million (prior year: EUR 11.0 million). Net profit for the period after non-controlling interests was slightly above double at EUR 8.7 million (prior year: EUR 4.3 million), leading to earnings per share of EUR 0.55 (prior year: EUR 0.27).

Outlook
The management board at the HOMAG Group now expects to slightly exceed their previous sales revenue forecast for 2012 and intends to generate more than EUR 750 million. Operative EBITDA before employee participation expenses and before extraordinary expenses is still estimated at EUR 65 million. The net profit for the year should be above EUR 5 million. In order intake, the HOMAG Group felt increasing uncertainty and a corresponding reluctance to invest. “Nevertheless we still aim to reach an order intake that is roughly at the prior-year level, even though we are aware that this appears ambitious from today’s perspective,” explains CEO Flik.

For the next fiscal year, 2013, the HOMAG Group forecasts an order intake at least at the level of 2011 or to slightly surpass this figure and sales revenue of around EUR 800 million. Due to the effects of restructuring and cost savings measures, an operative EBITDA of at least EUR 70 million and a net profit for the year of at least EUR 10 million are expected. These forecasts are subject to the condition that there are no major disruptions in the global economy.

 

Disclaimers
This press release contains certain statements relating to the future. Future-oriented 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 announcement, it cannot be guaranteed that the same will hold true in the future.

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