Ad-hoc | 17 February 2009 20:02
Homag Group AG / Preliminary Results
Release 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.
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Financial and economic crisis leaves its mark on HOMAG Group AG
• Substantial special effects burden the fourth quarter of 2008
• Net profit for 2008 after minority interests close to prior-year level
Schopfloch, February 17, 2009. The financial and economic crisis has had a
direct impact on the HOMAG Group AG’s business development sooner than
originally expected. Based on preliminary figures, this was manifested in
the fourth quarter of 2008 in a decrease in order intake of 46 percent to
EUR 77 million (prior year: EUR 142 million). Owing to this weak order
intake, there were significantly fewer plants in production as of December
31 than in the comparable prior-year quarter. This combined with the
percentage-of-completion (PoC) method applied – i.e. the revenue
recognition method – resulted in a considerable decrease in sales revenue
in the fourth quarter due to the cut-off date. In addition, the period
between October and December 2008 was marked by other substantial special
effects that have influenced sales revenue and earnings. For instance,
numerous currencies including the pound sterling, the Brazilian real, the
Polish zloty, the Australian dollar and the Canadian dollar depreciated by
as much as 22 percent in the fourth quarter compared to the third quarter
of 2008. The currency translation of sales revenue in these countries
resulted in an additional burden on sales.
The HOMAG Group AG’s management board thus currently expects sales revenue
for the full year 2008 of EUR 856 million (prior year: EUR 837 million).
Based on these preliminary figures, order intake stands at EUR 618 million
(prior year: EUR 747 million), while order backlog as of December 31, 2008
came to about EUR 164 million (prior year: EUR 255 million) including the
figures for BENZ GmbH Werkzeugsysteme, in which the Company acquired a
majority holding as of January 1, 2009.
The special effects that burden the earnings for 2008 include exchange rate
losses in excess of EUR 4 million attributable to the devaluation of
numerous currencies as well as negative effects of a comparable magnitude
from the application of the PoC method – i.e. revenue recognition. In
addition, the restructuring measures and non-recurring costs at some sites
in the fourth quarter that had already been announced resulted in
extraordinary expenses of some EUR 4 million. At present, this translates
to EBITDA before employee participation expenses in the region of EUR 91
million (prior year: EUR 100.1 million after IPO costs). In light of the
favorable tax rate and the improved interest result, however, the
management board expects a net profit for year after minority interests
comparable to that of the prior year (EUR 32 million). Had it not been for
the aforementioned special effects, the Company would have reached its
targeted 30 percent increase in net profit after minority interests. As
regards net liabilities to banks of EUR 79 million as of December 31, 2008,
the figure was better than expected, despite the adverse special effects.
Net liabilities to banks stood at almost EUR 95 million as of the end of
the third quarter of 2008.
The 2009 forecast issued by the HOMAG Group at the start of November 2008
which anticipated a decrease in sales revenue to EUR 800 million was based
on the premise that there would not be a dramatic slowdown. In the interim,
however, the economic crisis has proven to be severe and, according to the
management board, investment reticence has intensified further. As a
result, the entire industry faces a serious slowdown. A scenario with a
more pronounced drop in sales has thus become realistic. Due to the
extremely uncertain conditions prevailing at present, a more detailed
forecast is not possible, and the management board would rather wait until
after the LIGNA, the industry’s leading trade show, which will be held in
May.
Following the challenging start to the year, the management board
anticipates a weak first and second quarter, and points out that negative
results cannot be ruled out in individual quarters. However, a significant
net profit is targeted for fiscal 2009, since the HOMAG Group is well
prepared for a significant downturn.
The results of the fiscal year 2008 of HOMAG Group AG will be published in
greater detail at the press briefing on the annual results scheduled for
March 31, 2008.
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Information and Explaination of the Issuer to this News:
Background information
With its 16 production 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 more than 5,300 employees, the Company sees itself
as the leading global manufacturer for plant and machinery for the
woodworking industry for the production of furniture and construction
elements as well as prefabricated 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 and were
listed on the SDAX of the German Stock Exchange on October 2007.
Information:
HOMAG Group AG
Investor Relations
Simone Mueller
Phone: +49 7443 13-2034
simone.mueller@homag-group.com
www.homag-group.com
17.02.2009 Financial News transmitted by DGAP
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Language: English
Issuer: Homag Group AG
Homagstr. 3-5
72296 Schopfloch
Deutschland
Phone: +49 (0)7443 / 13 - 0
Fax: +49 (0)7443 / 13 - 2300
E-mail: info@homag-group.de
Internet: www.homag-group.de
ISIN: DE0005297204
WKN: 529720
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Hannover, Stuttgart, München, Hamburg, Düsseldorf
End of News DGAP News-Service
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