Homag Group's 1Q sales revenue down 9% to Euro 290 million
Homag Group,1Q 2020,sales revenue,operating EBIT
Despite the corona pandemic, the Homag Group closed the 1Q 2020 well. Production was almost continuous at all major plants. In March, however, the first effects of the corona pandemic began to make themselves felt. The acquisition of the trading partner in China was completed.
Homag Group sales revenue in the first three months of 2020 amounted to Euro 290 million, down 9% on the prior-year period (Euro 319 million). Order intake also fell by 9% to Euro 304 million (prior year: Euro 335 million).
At Euro 556 million, the order backlog as of March 31, 2020 was slightly higher than at the end of 2019 (December 31, 2019: Euro 546 million). In the 1Q 2020, the Homag Group generated operating EBIT of Euro 16.1 million (prior year: Euro 20.5 million).
The Chairman of the Management Board Pekka Paasivaara explains: "We have made a good start to the year and in January and February our order intake was noticeably higher than in the previous year. However, in March the corona pandemic had a significant impact on us, as it did on the entire industry. Despite the current challenging situation, we acquired the remaining 75% of the shares in our long-standing sales and service partner in China at the beginning of May. We are thus investing in our global presence and are very well positioned for the expected market growth in China.”
The Homag Group has been able to maintain production to a large extent even during the crisis. "Our supply chains are by and large stable," says Pekka Paasivaara. "Our hygiene measures introduced at an early stage are taking effect and I am very proud of how disciplined and responsible our employees are in dealing with this challenging situation. This keeps us fit for work."
The Homag Group is the world's leading supplier of integrated solutions for production in the woodworking industry and trade.