HOMAG Group adjusts projected results downward / Ad hoc announcement
Personnel and restructuring expenses higher than expected
Homag Group AG / Key word(s): Change in Forecast
01.08.2011 14:15
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.
Personnel and restructuring expenses higher than expected
Schopfloch, August 1, 2011. HOMAG Group AG did not reach its results targets in the second quarter of 2011 and is therefore adjusting its projected results for the whole of 2011 downward. This is a consequence of unplanned, high personnel costs in connection with customer projects and foreseeable repercussions from increases in the cost of materials. In addition, the ongoing restructuring at three subsidiaries is expected to cause a greater expense than initially anticipated, placing a burden on the effective tax rate.
As talks are still ongoing with employee representatives concerning the continuation of restructuring at the three subsidiaries BÜTFERING, FRIZ and TORWEGGE, it is still not possible to put an exact figure on the restructuring cost going forward. For 2011 as a whole, the management board anticipates EBITDA before extraordinary restructuring expenses and before employee participation expenses at roughly the same level as the prior year (EUR 65.1 million) and a net profit below the prior-year level owing to the higher tax rate that is anticipated. For 2011, the HOMAG Group had until now forecast an increase in EBITDA and intended to significantly raise its net profit.
According to the preliminary figures, EBITDA before extraordinary restructuring expenses and before employee participation expenses came to EUR 14.0 million in the second quarter of 2011 (prior year: EUR 15.0 million). Particularly the special effects of the restructuring of the subsidiary BÜTFERING increased the effective tax rate in the second quarter of 2011 to 96 percent (prior year: 36 percent), placing an additional burden on the preliminary quarterly result, which stands at EUR 0.0 million after non-controlling interests (prior year: EUR 1.6 million).
The Group's sales revenue and order intake continue to show the same positive trends as before. Here, the HOMAG Group was able to hit its targets and, based on preliminary figures, increase its sales revenue by some 10 percent to EUR 198.7 million in the second quarter of 2011 (prior year: EUR 181.1 million). Order intake rose by about 12 percent, reaching EUR 151.3 million (prior year: EUR 134.5 million). The current sales revenue and order intake projections for 2011 are confirmed. This would still result in a mid-single-digit percentage increase in sales revenue on the 2010 level and slight growth in order intake.
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.com
www.homag.com
01.08.2011 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de
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.de
Internet: www.homag.de
ISIN: DE0005297204
WKN: 529720
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart