Corporate | 31 March 2009 10:54
Homag Group AG / Final Results/Forecast
Release of a Corporate News, transmitted by DGAP - a company of EquityStory
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* Market leader well prepared for dramatic downswing
* Expectations for the first and second quarters very low
* Management board confirms figures for 2008
Stuttgart/Schopfloch, March 31, 2009. At HOMAG Group AG, the very poor
order intake of the fourth quarter of 2008 continued in 2009. At its press
briefing on the annual results in Stuttgart, the management board of the
world's leading manufacturer of plant and machinery for the woodworking
industry, which is listed on the SDAX, reported on a 'very substantial drop
in sales revenue in the first few months of the current year' and expects
to record a negative EBT in the first and second quarters of 2009.
According to spokesman of the management board Dr. Joachim Brenk, it is
virtually impossible to make a serious forecast for 2009 as a whole
'because it is not foreseeable how long the economic crisis, and thus also
the reluctance of our industry to invest, will last'. While he anticipates
a significant drop in sales revenue and earnings in the first half of 2009,
the industry's leading trade fair LIGNA is expected to provide new stimulus
and generate new orders in the second quarter.
According to the management board, the HOMAG Group aims to return a
positive operating result (EBIT before restructuring/non-recurring
expenses) for the year 2009 as a whole, despite the anticipated substantial
drop in sales revenue. This will be possible, according to CFO Andreas
Hermann, thanks to the greater flexibility achieved in the personnel area,
so that the company is well prepared even for a significant downswing. The
current period of market weaknesses has shown just how successful such
measures can be. 'We have already reduced the number of contract workers by
more than 310 and during 2009 more than 320 temporary employment contracts
will also come to an end,' explains Hermann. Back in the fourth quarter of
2008, the HOMAG Group also set up provisions for restructuring expenses to
cover terminations of around 330 employees who will also leave the company
in the course of 2009. These measures combined with short working hours,
the reduction of vacation and non-working shift accounts and far less
overtime mean that the Group will be able to reduce its personnel capacity
by more than 25 percent in 2009. According to the management board, 2009
will inevitably see further terminations for operational reasons at some
subsidiaries.
The spokesman of the management board Dr. Brenk stresses that the HOMAG
Group wants to emerge from the current market crisis as one of the winners.
'Being market leader and a strong group with worldwide operations affords
us a clear edge over smaller competitors.' On the order intake front, every
effort will therefore be made to increase the market share as the year
progresses. Potential acquisition opportunities will continue to be
appraised in order to take advantage of the current weak market phase and
negotiate acceptable terms.
Fiscal Year 2008
At the press briefing, the management board already confirmed the published
figures for the fiscal year 2008 and provided additional information about
the 2008 financial statements. Sales revenue increased to EUR 856 million
(prior year: EUR 837 million), raising the market share from 24 to 26
percent. Order intake came to EUR 618 million (prior year: EUR 747
million), while the order backlog as of December 31, 2008 came to 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.
In the fourth quarter of 2008, various factors impacted on sales revenue
and earnings. The use of the percentage of completion (PoC) method resulted
in a significant cut-off related drop in sales revenues. In addition,
numerous currencies lost up to 22 percent in value in the fourth quarter
compared to the 3rd quarter of 2008. The currency translation of sales
revenue in these countries resulted in an additional burden on sales
revenue. The special effects that burdened the earnings for 2008 include
exchange rate losses in excess of EUR 4.5 million 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 subsidiaries in the fourth quarter resulted in
extraordinary expenses of some EUR 4 million.
This translates to EBITDA for 2008 before employee participation expenses
of EUR 91.0 million (prior year: EUR 100.1 million after IPO costs). The
EBT before employee participation expenses decreased to EUR 59.0 million
(prior year: EUR 68.1 million). On account of the good effective tax rate
and the improved interest result, the net profit for the year after
minority interests of EUR 31.9 million matches the prior-year figure (EUR
32 million) and earnings per share is EUR 2.04 (prior year: EUR 2.12). The
net liabilities to banks as of December 31, 2008 stood at EUR 79 million
compared to EUR 95 million at the end of the third quarter of 2008 and EUR
61 million at year-end 2007. As of year end, the equity ratio had improved
from 29 to 33 percent. The management board and supervisory board propose
to the annual general meeting to distribute a dividend of EUR 0.30 per
share for 2008 (dividend for 2007: EUR 0.90).
The headcount of the HOMAG Group increased again significantly at the
beginning of 2008, only to fall again in the fourth quarter. As of December
31, 2008, the Group had 5,330 employees (prior year: 5,114), compared to
the 5,404 still employed at the end of the third quarter of 2008.
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.
Disclaimers
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.
For more information:
HOMAG Group AG
Investor Relations
Simone Mueller
Phone: +49 7443 13-2034
simone.mueller@homag-group.com
www.homag-group.com
31.03.2009 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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