Homag's FY 2019 sales decreased by 1.5%
In the 2019 financial year, the Homag Group sales summed up to Euro 1,279 million, compared to Euro 1,298 million in the previous year. The order backlog was worth Euro 546 million as of December 31, 2019, and incoming orders reduced significantly to Euro 1,220 million.
The EBIT is marked by the one-off-expenses put in place to support the structural measures announced in November 2019, which include closing production at the Hemmoor site.
“We are regrouping with numerous measures in place,” explains the CEO, Pekka Paasivaara. “We want to optimise our internal structures and processes and increase our efficiency so that we are fully prepared for the next upturn.”
Including one-off expenses, EBIT has dropped to Euro 46.2 million (previous year: Euro 94.9 million). Even without these special expenses, the operating EBIT decreased by 13% to Euro 82.8 million. This was largely due to the weak state of the market and under-utilisation.
“2019 saw a distinct market slowdown in business with the furniture industry”, emphasises Pekka Paasivaara. “Particularly in Germany, there was an appreciable reduction in incoming orders after high levels of investment in the previous years. In other regions, demand was around the same level as the previous year.”
Meanwhile, investments in the Homag Group remained fairly constant at Euro 41.8 million and primarily related to digital and IT projects and measures to improve productivity.
Homag Group AG is the world's leading supplier of integrated solutions for production in the woodworking industry and woodworking shops.