Homag Group AG / Final Results/Forecast
28.04.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Record turnover and profit levels
Dividend to increase by more than double
Board of Management confirms forecast for 2008
Stuttgart / Schopfloch, April 28, 2008. The HOMAG Group Board of Management
reported a successful start to the 2008 financial year at its Press
Conference on the financial results in Stuttgart. With orders in hand up
once again as at March 31, 2008 over the prior year for the SDAX-listed
leading manufacturer of plants and machines for the woodworking industry,
according to the Board of Management capacity utilization is secured up
until the end of the third quarter. Board spokesman Dr. Joachim Brenk: 'We
are observing worldwide continued lively demand which is sufficient to
absorb the weakness in the US market. Our project business is developing
extremely well, with strong demand evident particularly for the
larger-scale HOMAG Group plants, even in the USA.' This has pushed incoming
orders for the first quarter above target, meaning that the company was
able to match the exceptional performance and record levels achieved during
the prior year.
This positive development has allowed the Board to confirm its forecast for
the 2008 financial year, during which the HOMAG Group AG aims to further
extend its leading market position. The forecast envisages a minimal 6
percent rise in turnover coupled with at least a proportional rise of its
EBITDA. An improved interest result, the absence of IPO costs and the
impact of the corporation tax reforms in Germany are set to actually
increase annual net profit after minority interests by over 30 percent.
Positive market development in the threshold countries is providing
particular grounds for optimism, with recent trade fairs attended in China
and India, for instance, proving highly promising. The HOMAG Group is
consequently investing in its Indian sales and service company. A large new
building is planned with capacity for over 100 employees which is due for
completion at the beginning of 2009.
2007 financial year
The Board of Management also took the opportunity at the Press Conference
to provide more detailed information on developments during the prior
financial year. 2007 saw the HOMAG Group create over 400 new jobs, bringing
the total workforce from 4,701 employees at the end of 2006 to 5,114 as at
December 31, 2007. Of the new jobs, around 280 are located within Germany.
Cash flow from (continuing) operating activities has improved
substantially, with a rise of 42 percent to EUR 52.7 million (prior year:
EUR 37.2 million). This positive business development coupled with funds
generated by the flotation resulted in a reduction of net bank debt from
EUR 113 to 61 million. This positive financial standing moved the Board of
Management and the Supervisory Board to propose that the AGM agree a
dividend increase from EUR 0.40 to 0.90 per share.
Confirming the already published provisional figures for 2007, the HOMAG
Group AG Board of Management was able to report record levels for the 2007
financial year across all the key indicators. Turnover was up over 13
percent to almost EUR 837 million (prior year: EUR 736 million), incoming
orders increased by 19 percent to EUR 747 million (prior year: EUR 626
million), and orders in hand rose as at December 31, 2007 by 32 percent to
EUR 255 million compared to the end of 2006 (EUR 193 million).
According to CFO Andreas Hermann, a consistent policy of cost management
and a further increase in productivity were responsible for the
disproportionately high increase in earnings relative to growth in
turnover. This increased EBITDA prior to IPO costs and expenditure from the
employee participation scheme by around 21 percent to EUR 103.3 million
(prior year: EUR 85.0 million) and EBT prior to IPO costs and expenditure
from the employee participation scheme by 38 percent to EUR 71.4 million
(prior year: EUR 51.6 million). Even higher increases were shown in the
annual net profit after minority interests, which was up 61 percent to EUR
32.0 million (prior year: EUR 19.9 million) and the earnings per share, up
54 percent to EUR 2.12 (prior year: EUR 1.38).
Schopfloch, April 28th, 2008
The Board of Management
Company background
With its 14 production companies worldwide, 21 group-owned sales and
service companies and approximately 60 exclusive sales partners, HOMAG
Group AGs market position is excellent and its portfolio as a
comprehensive system supplier and technology partner makes it unique.
Backed by a workforce of more than 5,000 employees, the Company sees itself
as the leading global manufacturer for plant and machinery for the
woodworking industry for the production of furniture and construction
elements as well as prefabricated houses. The Group also offers its
customers a wide range of services in related areas for production machines
and equipment. HOMAG Group AG shares have been trading on the Prime
Standard of the Frankfurt Stock Exchange since July 13, 2007 and were
listed on the SDAX of the German Stock Exchange on October 2007.
Disclaimer
This press release contains certain future-oriented statements.
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', 'expected',
'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
unfavourable) 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.
For more information:
HOMAG Group AG
Investor Relations
Simone Mueller
Phone: +49 7443 13-2034
simone.mueller@homag-group.com
www.homag-group.com
DGAP 28.04.2008
---------------------------------------------------------------------------
Language: English
Issuer: Homag Group AG
Homagstr. 3-5
72296 Schopfloch
Deutschland
Phone: +49 (0)7443 / 13 - 0
Fax: +49 (0)7443 / 13 - 2300
E-mail: info@homag-group.de
Internet: www.homag-group.de
ISIN: DE0005297204
WKN: 529720
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Hannover, Stuttgart, München, Hamburg, Düsseldorf
End of News DGAP News-Service
---------------------------------------------------------------------------
DGAP-News: HOMAG Group AG confirms 2007 figures
| Source: EQS Group AG