The HOMAG Group plans to expand restructuring measures and expects to improve earnings in the medium term as a result / Ad hoc announcement
Homag Group AG / Key word(s): Miscellaneous/Change in Forecast
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement.
Schopfloch, October 6, 2011. At its meeting today, the supervisory board of HOMAG Group AG approved the management board's proposal to expand the restructuring measures already planned without prejudice to the rights of the co-determination bodies. As a consequence of this decision, the production and administration activities of the subsidiary FRIZ Kaschiertechnik GmbH, Weinsberg, are to be discontinued; while a development and service unit is to be kept. The Löhne site is to be closed down completely with operations at the subsidiary TORWEGGE Holzbearbeitungsmaschinen GmbH and the service branch of WEEKE Bohrsysteme GmbH located there. The restructuring of BÜTFERING Schleiftechnik GmbH, Beckum, which is to be linked to WEEKE Bohrsysteme GmbH, is progressing as planned. About 180 jobs are expected to be lost as a result of all these measures. The restructuring measures are scheduled for completion by the end of 2012. The objective of these measures is to generate a sustained improvement in operative EBITDA (before expenses from employee participation and before extraordinary expenses) ranging between EUR 6 million and EUR 8 million each year from 2013 onwards.
Owing to the expansion of restructuring measures, the HOMAG Group's extraordinary expenses are now expected to total about EUR 20 million in 2011. Of these, about EUR 16 million will affect liquidity. The largest part of this amount shall be effective 2012. In light of this and the anticipated very high effective tax rate, the HOMAG Group expects to incur a small loss after taxes for 2011. By contrast, the forecast operative EBITDA remains unchanged, and is still expected to match the prior-year level in 2011 (EUR 65.1 million).
Information and Explaination of the Issuer to this News:
With its 17 specialized production and assembly companies worldwide, 21group-owned sales and service companies and approximately 60 exclusivesales partners, HOMAG Group AG's market position is excellent and itsportfolio as a comprehensive system supplier and technology partner makesit unique. Backed by a workforce of some 5,000 employees, the company seesitself as the leading global manufacturer for plants and machinery for thewoodworking and wood materials industry for the production of furniture andconstruction elements as well as timber frame houses. The group also offersits customers a wide range of services in related areas for productionmachines and equipment. HOMAG Group AG shares have been trading on thePrime Standard of the Frankfurt Stock Exchange since July 13, 2007.
This press release contains certain statements relating to the future.Future-oriented statements are all those statements that do not pertain tohistorical 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 aresubject to risks and uncertainty since they relate to future events and arebased on current assumptions of the company, which may not occur in thefuture or may not occur in the anticipated form. The company points outthat such future-oriented statements do not guarantee the future; actualresults including the financial position and the profitability of the HOMAGGroup as well as the development of economic and regulatory frameworkconditions may deviate significantly (and prove unfavorable) from what isexpressly or implicitly assumed or described in these statements. Even ifthe actual results of the HOMAG Group including the financial position andprofitability as well as the economic and regulatory framework conditionsshould coincide with the future-oriented statements in this press release,it cannot be guaranteed that the same will hold true in the future.
HOMAG Group AG
Phone: +49 7443 13-2034
06.10.2011 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de
Company: Homag Group AG, Homagstr. 3-5, 72296 Schopfloch, Germany
Phone: +49 (0)7443 / 13 – 0
Fax: +49 (0)7443 / 13 – 2300
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart
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