DGAP-News: Homag Group AG / Key word(s): Quarter Results
HOMAG Group improves results of operations in third quarter of 2011
14.11.2011 / 07:09
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HOMAG Group improves results of operations in third quarter of 2011
- Cost cutting measures take effect
- Sales revenue up 20 percent in third quarter of 2011
- Forecasts for 2011 confirmed
Schopfloch, November 14, 2011. HOMAG Group AG increased its sales revenue
in the third quarter of 2011 by 20 percent to EUR 204.6 million compared to
the prior year (EUR 171.0 million). As one of the mechanical engineering
companies that feels any shift in the economic cycle at an early stage, the
world's leading manufacturer of machines and production lines for the
wood-processing industry and cabinet shops has noticed early indications of
a potential cooling down in the global economy. For instance, order intake
was slightly down year on year to EUR 129.0 million between July and
September (prior year: EUR 136.0 million). By contrast, order backlog rose
to EUR 221.8 million as of September 30, 2011 (prior year: EUR 202.6
million).
Apart from an improvement in sales revenue, the HOMAG Group also saw its
profitability improve in the third quarter of 2011, both compared to the
prior year and compared to the first two quarters of 2011. 'Here we can see
the impact of our cost cutting measures that we adopted and implemented in
response to the poorer results for the first six months of 2011,' CEO Dr.
Markus Flik emphasizes. 'These include a restrictive recruiting policy and
clear targets to reduce other operating expenses.'
Initial positive effects of these measures are reflected in the operative
EBITDA before employee participation expenses and before extraordinary
expenses from restructuring measures. This increased in the third quarter
of 2011 by 25 percent to EUR 17.1 million (prior year: EUR 13.7 million).
The employee participation expenses for the third quarter of 2011 came to
EUR 1.6 million (prior year: EUR 1.2 million), while extraordinary expenses
stood at EUR 0.4 million (prior year: EUR 0.8 million). EBT after employee
participation expenses and after extraordinary expenses improved to EUR 6.0
million (prior year: EUR 1.3 million). The net profit for the period after
non-controlling interests came to EUR 2.7 million (prior year: EUR 0.3
million), and leads to earnings per share of EUR 0.17 (prior year: EUR
0.02).
The HOMAG Group's headcount as of September 30, 2011 increased to 5,147
employees (prior year: 5,040 employees). Most of the new jobs were created
in the foreign production and sales companies operating in growth markets.
First to third quarters of 2011
In the first nine months of 2011, the Group's sales revenue increased by 12
percent to EUR 578.9 million (prior year: EUR 517.1 million) while order
intake was up 7 percent to EUR 468.1 million (prior year: EUR 436.1
million). Sales revenue to date contains EUR 25.0 million from a
large-scale project with the Russian customer Mekran, which has a total
contract volume of about EUR 58 million. The good results of the third
quarter led to improved earnings KPIs between January and September 2011.
For instance, operative EBITDA before employee participation expenses and
before extraordinary expenses climbed to EUR 45.7 million (prior year: EUR
41.4 million). After employee participation expenses and after
extraordinary expenses, EBT increased to EUR 11.0 million (prior year: EUR
7.5 million). The net profit for the period after non-controlling interests
improved to EUR 4.3 million (prior year: EUR 3.1 million), leading to
earnings per share of EUR 0.27 (prior year: EUR 0.20).
Outlook
Subject to the condition that the economic prospects do not become even
more gloomy, the management board of the HOMAG Group confirmed its forecast
for the full year 2011. The management board therefore still expects at
least a mid-single-digit percentage increase in sales revenue coupled with
slight growth in order intake. Operative EBITDA is expected to remain at
the prior-year level (EUR 65.1 million). As the Company had already
announced in October 2011, it expects to incur a slight net loss for the
year. This is due to the extraordinary expenses for the planned expansion
of restructuring measures totaling about EUR 20 million. Most of this
figure will affect earnings in the fourth quarter of 2011.
According to CEO Flik, the outlook for 2012 is still dominated by
substantial uncertainty at present. 'The prospects for the global economy
have dimmed and our customers have become somewhat more cautious. At the
same time, we are still seeing promising enquiries underscoring the
continued keen interest in our products'. Against this backdrop, the
management board aims to maintain sales revenue in 2012 at the level of
2011, after eliminating the extraordinary impact of the large-scale project
with Mekran. 'As regards order intake and operative EBITDA we also intend
to match the level of 2011 and we expect to earn a net profit again in
2012', concludes CEO Flik.
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Background information
With its 17 specialized production and assembly companies worldwide, 21
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 plants and machinery for the
woodworking and wood materials industry for the production of furniture and
construction elements as well as timber frame 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.
Disclaimer
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
Kai Knitter
Phone: +49 7443 13-2461
kai.knitter@homag-group.com
www.homag-group.com
End of Corporate News
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Language: English
Company: Homag Group AG
Homagstr. 3-5
72296 Schopfloch
Germany
Phone: +49 (0)7443 / 13 - 0
Fax: +49 (0)7443 / 13 - 2300
E-mail: info@homag-group.com
Internet: www.homag-group.com
ISIN: DE0005297204
WKN: 529720
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart
End of News DGAP News-Service
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145798 14.11.2011
DGAP-News: HOMAG Group improves results of operations in third quarter of 2011
| Source: EQS Group AG