The HOMAG Group reports good order situation
Order intake and order backlog increase in the first quarter of 2013 | Sales revenue and earnings influenced by fewer deliveries | Forecasts for 2013 confirmed
|in EUR million||Q1 2013||Q1 2012|
|Net profit for the period (after non-controlling interests)||1.8|
The HOMAG Group, the world’s leading manufacturer for plant and machinery for the woodworking industry and for cabinet makers, was able to significantly increase order intake by nearly 7 percent to EUR 182.3 million in the first quarter of 2013 (prior year: EUR 170.6 million), contrary to the industry trend. CEO Dr. Markus Flik explains: “This good order intake is even more remarkable considering the recently held LIGNA, the leading trade fair in the industry, as many of our customers typically wait until after LIGNA to make investment decisions.” The order backlog reached with EUR 230.9 million as of March 31, 2013 (prior year: EUR 208.9 million) the highest first-quarter figure since 2008, because among other factors numerous complex projects were in an early phase of processing at the end of the quarter.
The decrease in sales revenue to EUR 176.7 million between January and March 2013 (prior year: EUR 187.7 million) is, on the one hand, due to fact that the prior-year sales revenue included around EUR 5 million from the large-scale project for the customer Mekran which had an above-average proportion of merchandise. On the other, some delivery dates were postponed by customer request. “A portion of this sales revenue has thus been shifted to the coming months”, Flik adds.
Lower sales revenue in the first quarter of 2013 compared to the prior year has had a direct impact on the HOMAG Group’s results of operations. According to CFO Hans-Dieter Schumacher, the quarterly results were also burdened by higher personnel expenses relating to the collectively bargained wage increase of 2012, the temporarily higher expenses in connection with project processing and LIGNA preparations. Additionally, elimination of intercompany profits was higher in connection with the rising stocks in the first quarter of 2013. This burdening effect on earnings, will be compensated for to a large extent in the coming quarters. As a result, operative EBITDA before employee profit participation expenses and before extraordinary expenses stood at EUR 13.4 million (prior year: EUR 16.7 million) and EBT after employee profit participation expenses and after extraordinary expenses at EUR 3.6 million (prior year: EUR 6.8 million). The net profit for the period after non-controlling interests came to EUR 1.8 million (prior year: EUR 3.2 million), and leads to earnings per share of EUR 0.12 (prior year: EUR 0.21).
The HOMAG Group confirms their forecast so far for 2013. Subject to the condition that there are no major disruptions in the global economy, the Group aims to exceed the prior-year order intake figure and generate sales revenue for the Group of around EUR 800 million in 2013. The Group anticipates an operative EBITDA before employee profit participation expenses and before extraordinary expenses of around EUR 75 million and expects to return a consolidated net profit for the year of around EUR 15 million.
Dr. Markus Flik: “We are convinced that we will be able to compensate for the decrease in sales revenue and earnings in the first quarter of 2013 compared to the prior year over the remainder of the year. We are confident about the future thanks to the good order intake and the high order backlog as well as the positive results of LIGNA, the leading trade fair in the industry.”
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.