HOMAG returns to profit in the fourth quarter of 2009

Homag Group AG / Preliminary Results

01.03.2010 09:10

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* Economic crisis responsible for a weak fiscal year 2009
* Revenue, earnings and order intake improve from quarter to quarter in
2009
* Order backlog already higher again at year-end than in the prior year

Schopfloch, March 1, 2010. In what was overall a weak fiscal year, HOMAG
Group AG managed to return to profit in the fourth quarter of 2009 with the
figures for the period from October to December 2009. After a very slow
start to 2009 with the entire industry facing a decline in demand, the
HOMAG Group improved from quarter to quarter over the course of the year in
terms of revenue, order intake and earnings. Compared to the strong year
2008, however, the key performance indicators for 2009 have decreased
significantly as already announced.

Based on preliminary figures, the global leader for plant and machinery for
the woodworking industry, which is listed on the SDAX, saw revenue fall 39
percent to EUR 524 million (prior year: EUR 856 million). Order intake
dropped by 33 percent to EUR 413 million (prior year: EUR 618 million), but
then rallied to a level above the industry average, where orders fell by 44
percent. At EUR 131 million, the HOMAG Group's order intake improved
significantly in the fourth quarter of 2009 compared to the last quarter of
2008 (prior year: EUR 77 million). Order backlog was back up to EUR 171
million as of December 31, 2009, and thus higher than the prior-year figure
(EUR 164 million). 'Although we are by no means back to where we were
before the crisis, the volume of business is clearly on the rise,' says CEO
Rolf Knoll.

The management board of the HOMAG Group approved and implemented an
extensive package of measures to adjust capacity and reduce costs at an
early stage. 'This way, we managed to save more than EUR 100 million for
personnel, contract workers and other operating expenses (including costs
in proportion to revenue),' explains CFO Andreas Hermann. The extraordinary
expenses for these restructuring measures amounted to EUR 12.4 million in
2009. Despite these cost savings, it was not possible to make up for the
whole extent of the fall in revenue. Based on preliminary figures, EBITDA
before extraordinary expenses and before employee participation comes to
EUR 15.6 million (prior year: EUR 95.0 million) and EBT to EUR -19.4
million (prior year: EUR 63.0 million). The net result for the year after
minority interests amounts to EUR -20.7 million in the fiscal year 2009
(prior year: EUR 31.9 million). In the fourth quarter of 2009, however,
earnings were positive, with net income for the period attributable to
equity holders of approximately EUR 4 million before and of EUR 1 million
after extraordinary expenses.

Regarding the increase in net liabilities to banks to EUR 95 million as of
December 31, 2009 (prior year: EUR 79 million), Andreas Hermann points out
that they were reduced by some EUR 18 million in the course of the fourth
quarter. 'Considering the increase in excess of EUR 20 million that is
attributable to the acquisition of BENZ, the dividend distribution to our
shareholders and the payment for 2008 under the employee participation
program, we were even able to reduce our net liabilities to banks in spite
of the losses incurred in 2009,' emphasizes Hermann.

The headcount of the HOMAG Group was reduced continuously throughout 2009
as a result of the measures to adjust capacity being implemented and stood
at 4,743 employees as of year-end (excluding BENZ) (December 31, 2008:
5,330 employees). Including the employees of BENZ GmbH Werkzeugsysteme, in
which a majority shareholding has been held since the beginning of 2009,
the Group had a headcount of 4,954 employees as of December 31, 2009. The
number of contract workers was also reduced by more than 300.

CEO Rolf Knoll is 'cautiously optimistic' about the current fiscal year and
confident that the 'order situation is over the worst'. This forecast is
supported by the developments seen since the start of 2010, with order
intake rising again in the first two months compared to the prior year.
'Improved structures and the measures initiated to improve growth and
earnings will lead to a perceptible improvement in the financial position,'
says Rolf Knoll.

The results of the fiscal year 2009 of HOMAG Group AG and a forecast for
2010 will be published in greater detail at the press briefing on the
annual results scheduled for March 31, 2010 in Stuttgart.


 
Background information
With its 16 specialized production companies worldwide, 20 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 some 5,000 employees, the company sees itself as
the leading global manufacturer for plant and machinery for the woodworking
and wood materials 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.




Information:

HOMAG Group AG

Investor Relations
Simone Mueller
Phone: +49 7443 13-2034
simone.mueller@homag-group.com 
www.homag-group.com 









01.03.2010 Ad hoc announcement, Financial News and Media Release
distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:     English
Company:      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, München, Hannover, Düsseldorf, Stuttgart, Hamburg
 
End of News                                     DGAP News-Service
 
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