Homag Group AG / Quarter Results
15.05.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Significant rise in sales revenue in the first quarter of 2008
Improvement in earnings across the board
Schopfloch, May 15, 2008. Following the record year 2007, HOMAG Group AG
maintained its growth course in first quarter of 2008. Buoyed by a
continued high utilization of capacity, the SDAX-listed leading global
manufacturer of plant and machinery for the woodworking industry recorded a
substantial rise in sales revenue. In what is usually a slow quarter in the
industry, sales revenue rose by 18 percent in the first three months
vis-à-vis the comparable prior-year quarter, reaching EUR 227 million
(prior year: EUR 193 million). Total operating performance rose 11 percent
to EUR 240 million (prior year: EUR 216 million). Adjusted for the increase
in merchandise of some EUR 5 million, sales revenue would have increased by
15 percent and total operating performance by 9 percent.
CEO Dr. Joachim Brenk is also highly satisfied with the order intake of EUR
232 million (prior year: EUR 234 million). 'The weak market situation in
countries such as the US, Spain or Japan was offset by an above-budget
order intake from Eastern Europe and Asia in particular. We have almost
matched the record figures achieved in the prior year again and we are thus
above target.' At EUR 312 million as of March 31, 2008, the order backlog
of the HOMAG Group rose considerably, by 12 percent compared to the end of
the first quarter of 2007 (EUR 278 million) and by 22 percent compared to
year-end 2007 (EUR 255 million).
The HOMAG Group AGs earnings indicators have improved across the board in
the first quarter of 2008. Nevertheless, CFO Andreas Hermann points to a
number of factors that should be considered when assessing this
development. The Group only generates a small margin on merchandise, which
has risen compared to same quarter of the prior year. In addition, the
wages and salaries of employees in Germany increased by 4.1 percent as of
June 2007 in line with the collective bargaining agreement concluded in the
metal industry. This factor alone led to an a disproportionate increase in
personnel costs of EUR 2.4 million between January and March 2008 compared
to the first quarter of 2007. Currency losses on consolidation of EUR 0.8
million also need to be taken into account.
Despite these factors, EBITDA before employee participation expenses
increased in the first quarter of 2008 to EUR 27.8 million (prior year: EUR
27.4 million), while EBT before employee participation expenses rose to EUR
19.4 million (prior year: EUR 19.2 million). Due to the lower tax rate,
which decreased from 38 percent to 29 percent (or 31 percent adjusted for
special effects), the net profit for the period before minority interests
increased significantly by 16 percent to EUR 12.1 million (prior year: EUR
10.5 million), resulting in earnings per share of EUR 0.72 after minority
interests (prior year: EUR 0.68).
As in past quarters, the number of employees in the group continued to rise
in the first three months of 2008. As of March 31, 2008, the HOMAG Group
had 5,206 employees, up from 4,775 employees as of the end of the first
quarter of 2007 and 5,114 employees as of December 31, 2007. According to
the company, the new recruits are mostly engineers and specialists needed
for its engineering activities and for bringing the plant and machines into
operation. About half of the approximately 90 new jobs at the start of the
year were created in Germany and the remainder abroad.
Outlook
CEO Brenk expects continued growth in sales revenue and earnings in the
second quarter of 2008: 'We are confident that we will achieve a
substantial improvement on the prior-year quarter, which had more bank
holidays and was burdened by the cost of participating in the LIGNA trade
fair as well as a slight loss of productivity owing to preparations for the
trade fair. In addition, efficiency improvements from 'Project 2008' will
impact the second quarter. Order intake in the second quarter will reflect
the effects of Xylexpo, the major industry trade fair held in Italy,
although this will not match the impact of the main trade fair, LIGNA,
which is held every two years. Consequently, the order intake budgeted for
the second quarter is lower than in the same quarter of the prior year, but
remains at a high level.'
Overall, the management boards confidence has grown as regards its
forecast for fiscal 2008, according to which sales revenue is expected to
increase by at least 6 percent and EBITDA to at least match that rise.
Indeed, the management board sees a good chance that sales revenue might
surpass the EUR 900 million mark for the first time. In light of an
improved interest result, the non-recurring nature of the IPO costs
incurred and the effects of the business tax reform in Germany, the net
profit for the year after minority interests is expected to swell by more
than 30 percent.
Schopfloch, May 15th, 2008
The Board of Management
Background information
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.
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 press release,
it cannot be guaranteed that the same will hold true in the future.
HOMAG Group AG
Investor Relations
Simone Mueller
Phone: +49 7443 13-2034
simone.mueller@homag-group.com
www.homag-group.com
DGAP 15.05.2008
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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
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DGAP-News: HOMAG Group AG on steady growth course
| Source: EQS Group AG