Homag Group AG / Half Year Results/Forecast
14.08.2008
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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Earnings power and sales revenue improved again in second quarter of 2008
Forecast for 2008 confirmed, despite difficult environment
The Group believes it is well equipped for the future
Schopfloch, August 14, 2008. HOMAG Group AG has continued its positive
development into the second quarter of 2008 and has confirmed all of its
forecasts for the full year 2008. The global leader for plant and machinery
for the woodworking industry, which is listed on the SDAX, saw sales
revenue increase by 16 percent to EUR 223 million between April and June
2008 (prior year: EUR 193 million). Total operating performance rose 19
percent to EUR 238 million (prior year: EUR 199 million). As had already
been anticipated and announced by the Company in its interim report for the
first quarter of the year, order intake declined to EUR 169 million between
April and June 2008 compared to the second quarter of 2007 (prior year: EUR
213 million). According to the Companys spokesman, Dr. Joachim Brenk, the
comparable prior-year quarter reflected the excellent results of LIGNA, the
industry's largest trade fair in the world, which is only held every two
years.
Compared to the level in the second quarter of 2006 (EUR 152 million), in
which LIGNA was not held and which therefore serves as a better basis for
comparison, order intake has actually increased. 'Following the booming
orders in the wake of LIGNA, the volume of orders and our capacity
utilization have now normalized at a high level,' Dr. Brenk emphasizes. The
same holds true for order backlog, which stood at EUR 276 million as of
June 30, 2008 (prior year: EUR 334 million) exceeding even the high level
at the end of 2007 (EUR 255 million).
Strict cost management and the successful 2008 earnings enhancement project
have buoyed all of the HOMAG Groups earnings indicators in the second
quarter of 2008, outpacing sales revenue growth. Indeed, EBITDA before
employee participation expenses increased by 47 percent to EUR 25.2 million
(prior year: EUR 17.2 million), while EBT before employee participation
expenses rose by almost 80 percent to EUR 17.4 million (prior year: EUR 9.7
million). The net profit for the period before minority interests also
improved substantially to EUR 9.8 million (prior year: EUR 2.9 million)
backed by lower tax rate of about 33 percent. After minority interests,
this translates into earnings per share of EUR 0.56 for the second quarter
of 2008 (prior year: EUR 0.16). The prior-year figures include expenses of
EUR 5 million attributable to LIGNA. The cost incurred for this year's
trade show, XYLEXPO, was only about a third of that amount. But even when
adjusting for this effect, the HOMAG Group has seen its earnings power and
profitability rise.
In the second quarter of 2008, the HOMAG Groups headcount rose slightly to
5,283 employees as of June 30, 2008, compared to the 5,206 persons employed
at the end of the first quarter of 2008. As of June 30, 2007, 4,887 persons
were employed by the Group. Most of the new jobs created in the second
quarter were in Germany.
First six months of 2008
Group sales revenue in the first six months of 2008 increased by 17 percent
to EUR 450 million (prior year: EUR 386 million) the total operating
performance rose 15 percent to EUR 477 million (prior year: EUR 416
million). LIGNA in May 2007 had a special effect on order intake, which
then decreased in line with expectations in 2008 by 10 percent to EUR 401
million (prior year: EUR 447 million). The decrease also reflected
increasing turbulence in the global economy. EBITDA before employee
participation expenses increased 19 percent to EUR 53.0 million (prior
year: EUR 44.6 million), while EBT before employee participation expenses
rose 27 percent to EUR 36.8 million (prior year: EUR 29.0 million). The net
profit for the period before minority interests improved in the first six
months of 2008 to EUR 21.9 million (prior year: EUR 13.4 million). This
results in earnings per share after minority interests of EUR 1.28 (prior
year: EUR 0.84).
Outlook
The HOMAG Groups management board anticipates a successful final six
months in 2008. Despite the banking and finance crisis, the strong euro,
the high price of energy and raw materials combined with a slowing global
economy, the Companys spokesman, Dr. Brenk, expects order intake to reach
'a level comparable to the good results achieved in the second half of
2007.' 'Although the general environment has deteriorated, we are still
able to confirm all of our forecasts for 2008.' The Group therefore
anticipates a rise in sales revenue of at least of six percent, and remains
confident that it can achieve its ambitious sales revenue target and reach
the EUR 900 million threshold. Its objective is to raise EBITDA roughly in
proportion to the increase in sales revenue, and to increase net profit for
the year after minority interests by 30 percent.
In light of the continued stability of order intake, the mechanical
engineering company anticipates a satisfactory start to 2009, although it
considers it difficult at present to forecast how it will develop
thereafter. Dr. Brenk says, 'We are nevertheless certain that we have made
the HOMAG Group fit for the future, particularly in the past three years.
Indeed, we have invested worldwide in our sales and service activities, we
are more flexible and have a broader stance than ever before, are active on
new markets with innovative products and have leaner processes and
structures.'
Schopfloch, August 14th, 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.
Information:
HOMAG Group AG
Investor Relations
Simone Müller
Phone: +49 7443 13-2034
simone.mueller@homag-group.com
www.homag-group.com
DGAP 14.08.2008
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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 raises profitability
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