DGAP-Adhoc: The HOMAG Group plans to expand restructuring measures and expects to improve earnings in the medium term as a result

Homag Group AG  / Key word(s): Miscellaneous/Change in Forecast

06.10.2011 20:08

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Schopfloch, October 6, 2011. At its meeting today, the supervisory board of
HOMAG Group AG approved the management board's proposal to expand the
restructuring measures already planned without prejudice to the rights of
the co-determination bodies. As a consequence of this decision, the
production and administration activities of the subsidiary FRIZ
Kaschiertechnik GmbH, Weinsberg, are to be discontinued; while a
development and service unit is to be kept. The Löhne site is to be closed
down completely with operations at the subsidiary TORWEGGE
Holzbearbeitungsmaschinen GmbH and the service branch of WEEKE Bohrsysteme
GmbH located there. The restructuring of BÜTFERING Schleiftechnik GmbH,
Beckum, which is to be linked to WEEKE Bohrsysteme GmbH, is progressing as
planned. About 180 jobs are expected to be lost as a result of all these
measures. The restructuring measures are scheduled for completion by the
end of 2012. The objective of these measures is to generate a sustained
improvement in operative EBITDA (before expenses from employee
participation and before extraordinary expenses) ranging between EUR 6
million and EUR 8 million each year from 2013 onwards.

Owing to the expansion of restructuring measures, the HOMAG Group's
extraordinary expenses are now expected to total about EUR 20 million in
2011. Of these, about EUR 16 million will affect liquidity. The largest
part of this amount shall be effective 2012. In light of this and the
anticipated very high effective tax rate, the HOMAG Group expects to incur
a small loss after taxes for 2011. By contrast, the forecast operative
EBITDA remains unchanged, and is still expected to match the prior-year
level in 2011 (EUR 65.1 million).


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Information and Explaination of the Issuer to this News:

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
Simone Mueller
Phone: +49 7443 13-2034
simone.mueller@homag-group.com 
www.homag-group.com 





06.10.2011 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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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.de
Internet:     www.homag-group.de
ISIN:         DE0005297204
WKN:          529720
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart
 
End of Announcement                             DGAP News-Service
 
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