Homag reports 10% drop in order intake and revenues

29.05.2020 − 

The coronavirus crisis made a dent into the financials of Homag Group in March after a relatively good January and February 2020. Order intake and revenues booked by Dürr AG’s Woodworking Machinery and Systems division both dropped by almost 10% in the first quarter as a whole. This slump was less pronounced than Dürr had initially anticipated. Its spare parts and service business managed to maintain the previous year’s level. Homag Group’s order intake fell 9.8% to €301.7m on the back of much weaker new machinery business from mid-March onwards, resulting in an order backlog of around €556m as of 31 March 2020. This figure was still about €10m higher than the figure of €546.1m recorded at the year’s end. According to Dürr, Homag’s large plants in Germany and Poland manufactured throughout the entire first quarter. Outside Europe, the company had to suspend production in Shanghai for around a fortnight in February because of the coronavirus crisis. Production gradually ramped up again starting in mid-February; the Shanghai plant has been running at full speed again since the end of March. The Chinese market has also staged a relatively quick recovery; however, Homag’s first-quarter order intake in China was already slightly higher than the previous year’s level, which had been lower for economic reasons.

Homag Group’s total revenues dropped 9.3% to €289.6m in the first quarter. Operating EBIT fell 21.5% to €16.1m while total EBIT was almost one-third lower at €12.5m. Extraordinary expenses are related to restructuring measures adopted at the start of November 2019. Another €1.2m had been booked in this category in the first quarter. All told, extraordinary charges reached €3.5m in the first quarter. According to Dürr’s CEO Ralf Dieter, around 100 of the 350 planned jobs were shed at Homag Group’s sites in Germany. However, the firm is also raising its number of employees outside Germany in some cases. Homag Group’s total number of employees dipped slightly to 6,613 at the end of the first quarter; the group had 6,569 employees at the end of 2019.

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