Package of measures adopted to boost efficiency and reduce capacity at HOMAG
EQS-Ad-hoc: Homag Group AG / Key word(s): Restructure of Company/Change in Forecast
Homag Group AG: Package of measures adopted to boost efficiency and reduce capacity at HOMAG
07-Nov-2023 / 18:34 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
HOMAG Group AG – SIN: 529720 / ISIN: DE0005297204
Schopfloch, November 7, 2023 — The HOMAG Group will be implementing a package of measures to enhance its efficiency and adjust its capacity. The resultant extraordinary expenses are valued at €35 to 50 million and will be placed on the books in the fourth quarter of 2023. The main element of the package entails the planned elimination of just under 600 jobs in Germany and abroad. This will generate recurring savings of initially around €25 million in 2024 and – following the completion of the program – of roughly €50 million per year from 2025.
As a result of a pronounced cyclical decline in demand in the market for woodworking machinery, the HOMAG Group’s order intake dropped by 32% in the first nine months of 2023. This is expected to result in a decline of up to 15% in sales in 2024. The purpose of the planned savings is to limit the effect of the lower sales on earnings and help ensure that the HOMAG Group delivers an EBIT margin of 2.0 to 4.0% before extraordinary effects in 2024. At the same time, the package of measures will improve HOMAG Group’s basis for profitable growth in the future. In addition to the planned job cuts, the package also entails other flexibilization instruments such as the reduction of working-hour accounts and short-time work.
In view of the additional extraordinary expenses in the fourth quarter, HOMAG Group AG now expects lower earnings before tax and profit transfer in 2023. Prior to this, it had projected a slight increase.
Contact:
HOMAG Group AG
Jens Fahlbusch
Kommunikation
Tel.: +49 7443 13-2796
E-Mail: jens.fahlbusch@durr.com
Company Background
The HOMAG Group is the world's leading provider of integrated solutions for production in the woodworking industry and woodworking shops. Its 14 specialized production sites, about 20 Group-owned sales and service companies and approximately 60 exclusive sales partners worldwide make the company a unique system provider. Backed by a workforce of some 7,000 employees the HOMAG Group offers its customers solutions for digitized production, based on digital data continuity from point of sale through the entire production process, combined with a comprehensive software suite. In addition, the open ecosystem "tapio" (open Internet-of-Things platform) maps the data flow along the entire value chain of the timber industry. The HOMAG Group has been majority-owned by the Dürr Group since October 2014.
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.
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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: Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt (Basic Board), Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 1767511