DGAP-News: Positive trend continues at HOMAG Group

| Source: EQS Group AG EQS Group AG 

Homag Group AG / Quarter Results

14.05.2010 07:51 

Dissemination of a Corporate News, transmitted by
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* Significant gains in order intake, sales revenue and earnings in Q1 2010
* Job cuts less severe than feared
* Forecasts for 2010 confirmed, increased sales revenue expected

Schopfloch, May 14, 2010. The positive trend reported by HOMAG Group AG in
the second half of 2009 has continued into the first quarter of 2010. Sales
revenue, order intake and earnings continued to improve, particularly with
regard to the same quarter in the prior year, which was admittedly very
poor. The global leader for plants and machinery for the woodworking
industry, which is listed on the SDAX, saw a sales revenue increase to EUR
165 million in the first three months of 2010 (prior year: EUR 119
million). Order intake even more than doubled to EUR 166 million (prior
year: EUR 75 million), its highest value since the second quarter of 2008.
The order backlog came to EUR 201 million as of March 31, 2010 (prior year:
EUR 144 million).

'Although we have not yet returned to the level of order volume seen at
peak times, we are very happy with our start to the year,' stresses CEO
Rolf Knoll. However, he does not want to attribute this solely to the
strong gains made compared to the first three months of 2009. 'What is most
important for us is that our customers' willingness to invest has continued
to grow, and that we are currently getting a positive response to and high
demand for our products at trade fairs,' says Knoll.

As was the case in the last quarter of 2009, HOMAG Group's results remained
positive in the first quarter of 2010 despite considerable pressure on
prices. EBITDA before the negligible extraordinary expense of EUR 0.3
million for restructuring measures/non-recurring effects, and before the
result from employee participation, amounts to EUR 12.7 million (prior
year: EUR -3.7 million), while EBT on the same basis comes to EUR 3.6
million (prior year: EUR -12.6 million). The net profit for the period
after minority interests improved to EUR 1.2 million (prior year: EUR -11.1
million), and leads to earnings per share of EUR 0.08 (prior year: EUR
-0.70). In addition to the resurgence of revenue, CFO Andreas Hermann
attributes significantly improved earnings figures to a strong reduction in
the cost base in particular. 'Our comprehensive restructuring measures have
ensured that we are very well placed for the current order volume with
reduced capacities.'

HOMAG Group's headcount as of March 31, 2010 came to 4,956 (March 31, 2009:
5,387 employees). In comparison to its peak figure as of the third quarter
of 2008, the workforce has been reduced by around 650 employees and almost
300 temporary workers. Hermann is optimistic that this means that the group
has reached the ideal number of employees earlier than planned. 'The upturn
in business has meant that we had to cut 300 fewer jobs than originally
feared.'

Outlook
The management board has confirmed its previous forecast for 2010. This
states that sales revenue and total operating performance should increase
by at least 15 percent to over EUR 600 million. 'We even expect an
improvement on 2009 of more than EUR 100 million to over EUR 620 million,'
CEO Knoll says optimistically. Double-digit percentage growth is also
expected for order intake, although HOMAG Group expects to return to the
usual seasonal patterns in 2010 with order intake declining as the year
progresses.

The management board continues to expect a small net profit for the current
fiscal year. However, the second quarter may close with a small net loss
due to the lower number of working days, considerably higher interest
expenses and the costs for the Xylexpo trade fair.


Background information
With its 16 specialized production companies worldwide, 20 group-owned
sales and service companies and approximately 60 exclusive sales partners,
HOMAG Group AG's market position is excellent and its portfolio as a
comprehensive system supplier and technology partner makes it unique.
Backed by a workforce of some 5,000 employees, the company sees itself as
the leading global manufacturer for plant and machinery for the woodworking
and wood materials 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 Mueller
Phone: +49 7443 13-2034
simone.mueller@homag-group.com 
www.homag-group.com 


















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Language:     English
Company:      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, München, Hannover, Düsseldorf, Stuttgart, Hamburg
 
End of News                                     DGAP News-Service
 
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