Corporate | 30 March 2012 10:39
|
Homag Group AG / Key word(s): Final Results/Forecast
HOMAG Group: Successful Operations in Fiscal 2011 – Business unit of BÜTFERING sold as planned – Restructuring expenses lead to net loss for the year – Changes in the management board – Positive outlook for 2012/2013
Stuttgart/Schopfloch, March 30, 2012. HOMAG Group AG, the world's leading manufacturer of plant and machinery for the woodworking industry and cabinet makers, published today at the press briefing on the annual results in Stuttgart the final financial figures for 2011, confirming all preliminary figures published previously. CEO Dr. Markus Flik, was satisfied with the development of the fiscal year: 'In the fiscal year 2011, we developed better than we had expected during the year and generated good operating results. We achieved a lot in 2011. In 2012, we will continue working on the implementation of the actions introduced. This includes the restructuring, which is progressing as planned and with which we want to optimize our group structure and reduce the number of production sites in Germany from eleven to eight,' says Dr. Flik. As already reported, management and employee representatives were able to reach an agreement on a reconciliation of interests and a redundancy/social plan at the subsidiaries BÜTFERING Schleiftechnik GmbH, Beckum, and TORWEGGE Holzbearbeitungsmaschinen GmbH, Löhne. In the course of this restructuring, the HOMAG Group was able to sell the metal grinding machines business unit of the subsidiary BÜTFERING to LISSMAC Maschinenbau GmbH, Bad Wurzach. It was agreed to maintain secrecy as to the purchase price. As a result, it was possible to save 17 positions. The Group's further expansion of its position in the growth markets is also progressing well with the expansion of the production site in China and the build-up of the assembly plant in India. The innovations presented at the lead trade fair, LIGNA, were extremely well received by the market and the large-scale project with the Russian customer, Mekran, is progressing as planned.
Results in the fiscal year 2011
Primarily owing to the restructuring expenses of EUR 18.9 million for the measures at the subsidiaries BÜTFERING, FRIZ and TORWEGGE, EBT after employee participation expenses and after extraordinary expenses decreased to EUR 6.4 million (prior year: EUR 14.4 million). The restructuring as well as the interest limitation regulations and losses incurred by some subsidiaries on which it was not possible to recognize deferred tax assets result in a high tax expense rate of 151.7 percent (prior year: 43.9 percent). This results in a net loss after non-controlling interests of EUR 4.7 million (prior year: net profit of EUR 6.7 million). This results in earnings per share of EUR -0.30 (prior year: EUR 0.43). As anticipated, net liabilities to banks rose to EUR 80.9 million as of December 31, 2011 after the extremely low level in the prior year (December 31, 2010: EUR 55.8 million). At 29.0 percent as of December 31, 2011, our equity ratio remains at virtually the prior-year level (29.8 percent) on account of the fall in total assets. Due to the increased EBIT before employee participation expenses and before extraordinary expenses and the lower capital employed, ROCE in 2011 improved further to 15.0 percent before taxes (prior year: 12.3 percent) and after taxes (calculated based on a tax rate of 30 percent for both years) to 10.5 percent (prior year: 8.6 percent). 'By rigorously raising the productivity of the capital employed we were able to reduce working capital, despite the increase in sales revenue, which allowed an increase in ROCE,' CFO Hans-Dieter Schumacher explains. As of December 31, 2011, the HOMAG Group had 5,141 employees (prior year: 5,051 employees). To prepare for the future growth, investments were increased. This item came to EUR 33.8 million in 2011 (without leases) (prior year: EUR 23.0 million). The focus was on expanding the production in China, the new assembly plant in India and modernizing plant and machinery in the German production sites. On account of the net loss incurred in the fiscal year 2011, both the management board and supervisory board of HOMAG Group AG will propose to the annual general meeting on May 24, 2012 not to distribute a dividend for 2011.
Changes in the management board
'With Mr. Becker-Ehmck we were able to attract a proven expert for production processes as a new colleague who will drive forward the further development of our global value-added network, explained Dr. Markus Flik, CEO of the HOMAG Group AG. We look forward to working closely with Mr. Högemann also in his future position.' The management board member in charge of research and development to date, Achim Gauß, decided not to extend his contract, which expires at the end of 2012, in order to seek new professional challenges outside the HOMAG Group. The management board members Dr. Markus Flik and Jürgen Köppel will assume his tasks. 'We would like to thank Mr. Gauß for his many years of successful work at the HOMAG Group. He has driven forward key innovations and built up valuable customer relationships and we wish Mr. Gauß all the best in his future career. We are convinced that the future management board team is very well prepared to take our Group forward on the way to profitable growth,' says the chairman of the supervisory board of HOMAG Group AG, Torsten Grede.
Outlook
'We are improving our operating performance – step by step,' Dr. Flik emphasized. According to the management board, this includes the rigorous capture of synergies in the Group, the completion of the restructuring in 2012, further improvement of company processes and the optimization of liquidity management. The HOMAG Group is laying the foundations for future growth based on innovations and the expansion of the international presence in the areas of sales, service and production. The objective is to attain or extend the market leadership in all segments. Once the restructuring is completed in the current fiscal year, a sustained improvement in operative EBITDA (before expenses from employee participation and before extraordinary expenses) is expected to be generated ranging between EUR 6 million and EUR 8 million each year from the fiscal year 2013 onwards compared to the fiscal year 2011. 'In 2013 we again anticipate a moderate year-on-year growth in order intake and in sales revenue, and we want to further raise our net profit for the year,' Dr. Flik emphasized. In the medium term, the Company aims to return to the level of sales revenue seen in the years 2007 and 2008 of approximately EUR 850 million. – – – – – – – – – –
Background information
Disclaimer
For further information, please contact:
HOMAG Group AG
End of Corporate News 30.03.2012 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
| Language: | English | |
| Company: | Homag Group AG | |
| Homagstr. 3-5 | ||
| 72296 Schopfloch | ||
| Germany | ||
| Phone: | +49 (0)7443 / 13 – 0 | |
| Fax: | +49 (0)7443 / 13 – 2300 | |
| E-mail: | info@homag-group.com | |
| Internet: | www.homag-group.com | |
| ISIN: | DE0005297204 | |
| WKN: | 529720 | |
| Listed: | Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart | |
| End of News | DGAP News-Service |
|
|
| 162991 30.03.2012 |