Order intake in the first half of 2022 exceeds EUR 1 billion for the first time
Positive business development at HOMAG Group continues
Schopfloch, August 4, 2022. Following the record order intake in the opening quarter, the strong demand at the HOMAG Group continued in the second quarter. The company also achieved significant growth in sales and earnings in the first half of 2022.
In the first six months of 2022, the HOMAG Group’s order intake increased by 18 percent compared to the already very high previous year’s figure to EUR 1,031 million (previous year: EUR 872 million). “This is the first time we exceeded the EUR 1 billion mark in a half-year,” emphasizes CEO Dr. Daniel Schmitt. “We were successful both in the single machine business and in the systems business with complete production lines as well as with our service portfolio. In terms of regions, North America in particular developed very strongly. Demand was particularly high for systems for the production of components for sustainable timber houses there.” As a result of the high order intake, the order backlog rose to EUR 1,269 million as of June 30, 2022 (June 30, 2021: EUR 839 million).
Sales increased for the sixth consecutive quarter, improving by 21 percent to EUR 782 million in the first half of 2022 (previous year: EUR 647 million). As reasons for the increase in sales, Dr. Daniel Schmitt cites “efficient capacity utilization, improved adjustment to material shortages as well as positive exchange rate effects and a temporarily higher share of merchandise with no added value of its own in a major US order.”
The HOMAG Group was able to increase its EBIT before extraordinary effects by 45 percent to EUR 58.6 million (previous year: EUR 40.3 million), even though the supply chain problems continued to lead to additional expenses and the share of sales revenue generated by lower-margin merchandise was above average. High capacity utilization, the growing service business and the efficiency improvements of previous years had a positive impact on earnings.
As of June 30, 2022, the number of employees in the company had increased to 7,333 (June 30, 2021: 6,800). The HOMAG Group has built up its workforce particularly in the strategically important areas of service and timber construction.
With the HOLZ-HANDWERK exhibition in Nuremberg in July, a major trade fair was held as an in-person event for the first time since the coronavirus pandemic. Dr. Daniel Schmitt comes to a positive conclusion: “We succeeded in having many good discussions with customers at the exhibition. Our innovations met with great approval and we observed great interest in our solutions in the areas of digitalization and automation. We therefore maintain an optimistic outlook for the remainder of the year.”
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.