11/13/2014

HOMAG Group raises order intake, sales revenue and earnings

Order intake increases by 15 percent in the third quarter of 2014 | Net profit for the period raised by more than 32 percent | Order intake, sales revenue and operative EBITDA expected at the higher end of the forecast ranges for 2014

*  New calculation method: Order intake and order backlog now contain own machines, merchandise of production companies and after sales
** 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 for cabinet makers continued its positive business development in the third quarter of 2014. Order intake increased by 15 percent to EUR 203.2 million (prior year: EUR 176.9 million) and order backlog rose by more than 26 percent to EUR 302.8 million as of September 30, 2014 (prior year: EUR 239.3 million). The HOMAG Group’s sales revenue was up by 14 percent to EUR 231.4 million (prior year: EUR 202.9 million), although more than half of sales revenue growth stems from Stiles Machinery, Inc., which was fully acquired in February 2014.

Dr. Markus Flik, CEO, attributes the high order intake, among other things, to the global positioning of the HOMAG Group. “We were able to more than compensate for the noticeable lull on the Russian market thanks to the good development in the US and China and, as a result, grow significantly in an overall challenging market environment.”

According to CFO, Hans-Dieter Schumacher, the Stiles acquisition slightly burdened earnings again in the third quarter of 2014. Nevertheless, the HOMAG Group was able to further improve its results of operations between July and September 2014. Operative EBITDA before employee profit participation expenses and before extraordinary expenses increased by just under 15 percent to EUR 28.2 million (prior year: EUR 24.5 million). The net profit for the period after non-controlling interests increased to EUR 8.8 million (prior year: EUR 6.6 million). This results in earnings per share of EUR 0.56 (prior year: EUR 0.42). 

The HOMAG Group’s headcount increased to 5,553 employees as of September 30, 2014 (prior year: 5,062 employees). The significant increase is above all due to the Stiles acquisition, where 321 people were employed at the end of the quarter. In addition, the company increased the headcount at its foreign production companies in China and Poland.

 

First to third quarters of 2014
The HOMAG Group’s order intake increased by 13 percent to EUR 647.0 million in the first nine months of 2014 according to the new calculation method (prior year (restated): EUR 572.4 million). Sales revenue rose by more than 15 percent to EUR 661.9 million (prior year: EUR 574.9 million). Approximately EUR 42 million of this amount stems from the Stiles acquisition. Operative EBITDA before employee profit participation expenses and before extraordinary expenses rose by 29 percent to EUR 66.4 million (prior year: EUR 51.5 million). The net profit for the period after non-controlling interests improved by more than 50 percent to EUR 16.2 million (prior year: EUR 10.7 million), and leads to earnings per share of EUR 1.03 (prior year: EUR 0.68).

 

Outlook
Based on the positive development of business in the first nine months, the management board of the HOMAG Group now expects to achieve order intake, sales revenue and operative EBITDA for 2014 at the higher end of the forecast ranges described below, or even exceed these slightly. Order intake is expected in a range between EUR 760 million and EUR 780 million (prior year (restated): EUR 734 million). The acquisition of Stiles Machinery, Inc. will not lead to any increase in order intake based on the new method of calculation. The Group’s sales revenue is expected to reach between EUR 860 million and EUR 880 million. About half of this sales revenue growth is expected to result from the Stiles acquisition. Operative EBITDA before employee profit participation expenses and before extraordinary expenses is estimated to be between EUR 82 million and EUR 84 million in 2014. The Stiles acquisition will lead to special burdens and extraordinary expenses will arise as a result of the acquisition by Dürr for 2014 as a whole. As a result, the Group is expected to return a net profit for the year 2014 at the lower end of the forecast range of between EUR 20 million and EUR 22 million.

 

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.

 

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