HOMAG Group continues on successful course with a strong second quarter of 2014
Order intake increases nearly 20 percent | Operative earnings increase more than 50 percent | Forecasts for 2014 confirmed
| in EUR million | Q2 2014 | Q2 2013 |
|---|---|---|
| Order intake* | 214.5 | 179.2 |
| Order backlog* | 288.0 | 261.3 |
| Sales revenue | 225.8 | 195.3 |
| Operative EBITDA** | 20.9 | 13.7 |
| Net profit for the period (after non-controlling interests) | 4.9 | 2.2 |
* New calculation method: Order intake and order backlog now contain own machines, merchandise of production companies and the after-sales segment
** Earnings before interest, taxes, depreciation and amortization as well as before employee profit participation and before extraordinary expenses
The HOMAG Group, the world’s leading manufacturer of plant and machinery for the woodworking industry and cabinet makers, has increased its order intake by nearly 20 percent to EUR 214.5 million in the second quarter of 2014 (prior year: EUR 179.2 million). At EUR 288.0 million as of June 30, 2014 (prior year: EUR 261.3 million), order backlog reached the highest level since 2008. Stiles Machinery, Inc., which was fully acquired in February 2014, was responsible for almost half of sales revenue growth of around 16 percent to EUR 225.8 million (prior year: EUR 195.3 million).
“The integration of Stiles is progressing as planned. This acquisition allows us to fully participate in the current positive development of the US market,” CEO Dr. Markus Flik emphasizes. Flik was also satisfied with the development of the second quarter, in particular “because we were able to further enhance our productivity, which can be seen in considerable increases in margins.”
For instance, operative EBITDA before employee profit participation expenses and before extraordinary expenses was up 53 percent between April and June to EUR 20.9 million (prior year: EUR 13.7 million). The HOMAG Group more than doubled its net profit for the period after non-controlling interests to EUR 4.9 million (prior year: EUR 2.2 million). This results in earnings per share of EUR 0.31 (prior year: EUR 0.14). CFO Hans-Dieter Schumacher explains: “We achieved this significant improvement in earnings despite the fact that the Stiles acquisition still had a slight burdening effect on operative EBITDA in the second quarter.”
As of June 30, 2014, the HOMAG Group had 5,450 employees (prior year: 5,019 employees). This increase is primarily attributable to the additional 324 employees from Stiles in the first quarter of 2014. The headcount also further increased in the US, China and Poland.
First six months of 2014
The HOMAG Group’s order intake improved by more than 12 percent to EUR 443.8 million in the first half of the year according to the new calculation method (prior year: EUR 395.5 million). Sales revenue rose by almost 16 percent to EUR 430.5 million (prior year: EUR 372.0 million). Approximately EUR 26 million of this amount stems from the Stiles acquisition. Operative EBITDA before employee profit participation expenses and before extraordinary expenses rose by 41 percent to EUR 38.3 million (prior year: EUR 27.1 million). The net profit for the period after non-controlling interests improved by around 82 percent to EUR 7.4 million (prior year: EUR 4.1 million), and leads to earnings per share of EUR 0.47 (prior year: EUR 0.26).
Outlook
Following a successful first half of 2014, the HOMAG Group confirms its forecasts to date for fiscal 2014. Under these forecasts, the Group aims to further increase order intake to between EUR 760 million and EUR 780 million (prior year restated: EUR 734 million). Group sales revenue is budgeted to increase to between EUR 860 million and EUR 880 million in 2014 (prior year: EUR 789 million). About half of sales revenue growth is expected to result from the Stiles acquisition.
Operative EBITDA before employee profit participation expenses and before extraordinary expenses is expected to range between EUR 82 million and EUR 84 million in 2014 (prior year: EUR 76 million) and the Group to return a net profit for the year ranging between EUR 20 million and EUR 22 million (prior year: EUR 18 million). The HOMAG Group anticipates that the full consolidation of Stiles will have a slightly negative impact on these two earnings indicators in 2014 as the consolidation and purchase price allocation effects together with the acquisition-related costs at Stiles are expected to slightly exceed the additional contribution to profit. The Group anticipates a positive contribution to earnings from the acquisition as of 2015.
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 announcement, it cannot be guaranteed that the same will hold true in the future.