The HOMAG Group aims to continue profitable growth in 2014
Preliminary figures for fiscal 2013 confirmed: All key indicators improved | Net profit for the year increases by 45 percent | Sales revenue, order intake and earnings to increase further in 2014
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*Earnings before interest, taxes, depreciation and amortization and before employee participation expenses and before extraordinary expenses
Following the successful fiscal year 2013, the HOMAG Group, the world’s leading manufacturer of plant and machinery for the woodworking industry and cabinet makers, wants to continue its course for growth in 2014. At the annual press conference in Stuttgart, Dr. Markus Flik, CEO, announced an increase in sales revenue, order intake and earnings. “We have already achieved a lot in the first weeks of this fiscal year. To this end, among other things, we fully took over the leading distribution and service organization in the US, Stiles Machinery. This allows us to benefit directly from the anticipated re-industrialization in the US in which we will now play a role on account of our direct market access,” Flik adds.
Fiscal year 2013
In fiscal 2013, the HOMAG Group improved all key indicators on 2012 and in some cases exceeded the Group’s forecast figures. The Group’s order intake was up by 5.1 percent, reaching EUR 605.0 million (prior year: EUR 575.8 million) and, against a backdrop of a slightly contracting market, the Group was able to increase sales revenue by 2.9 percent to EUR 788.8 million (prior year: EUR 767.0 million). Order backlog came to EUR 197.6 million (prior year: EUR 179.7 million) - the highest year-end figure in the last five years.
CFO Hans-Dieter Schumacher emphasizes that the results of operations in particular developed very favorably in 2013, thanks to measures to enhance efficiency taking effect. For instance, outpacing sales revenue growth, operative EBITDA before employee participation expenses and before extraordinary expenses was up 6.6 percent to EUR 75.8 million (prior year: EUR 71.0 million). The Group was even able to increase the net profit for the year by 45 percent to EUR 18.4 million (prior year: EUR 12.7 million) and thus considerably exceeded the forecast figure of EUR 15 million. Accordingly, earnings per share amounts to EUR 1.17 (prior year: EUR 0.81). Schumacher also cites the significant reduction of net liabilities to banks from EUR 89.5 million to EUR 69.2 million as further evidence of the successful fiscal year. The equity ratio rose from 30.6 to 32.7 percent.
The HOMAG Group wants to share this positive development of business with its shareholders. Consequently, the management board and the supervisory board will propose to the annual general meeting on June 3, 2014 the payment of a dividend of EUR 0,35 per share. This would represent a 40 percent increase on the prior year (prior year: EUR 0.25 per share).
The headcount increased slightly to 5,064 employees as of December 31, 2013 (prior year: 5,048 employees). In this context, the headcount in Germany decreased marginally, while the headcount abroad rose slightly.
Following a change in the calculation method, the HOMAG Group aims to increase order intake to between EUR 760 million and EUR 780 million (prior year restated: EUR 734 million). Group sales revenue is expected to rise to between EUR 860 million and EUR 880 million in 2014, although growth of a mid-single-digit percentage compared to 2013 will result from the Stiles acquisition. Operative EBITDA before employee profit participation expenses and before extraordinary expenses and the net profit for the year are expected to increase to between EUR 82 million and EUR 84 million and to between EUR 20 million and EUR 22 million, respectively.
The Stiles takeover will not yet have any significant effect on earnings figures before the end of 2014 because the additional contribution to earnings and the consolidation and purchase price allocation effects together with the incidental acquisition costs roughly balance each other out. The HOMAG Group anticipates a positive contribution to earnings from the acquisition as of 2015.
“We aim to continue our course of profitable growth further and actively leverage market opportunities. In this way, we want to further strengthen and expand our position as the clear market and innovation leader in the industry,” Dr. Markus Flik emphasizes.
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.