GERMANY – The Homag Group continues to face the impact of investment reluctance, with decreased sales and earnings in the first half of 2024 (6M-2024).

Sales dropped 14% to EUR 706 million, compared to EUR 817 million the previous year, reflecting ongoing market weakness since mid-2022. However, service sector sales grew by about 4%. EBIT before extraordinary items fell to EUR 21.5 million from EUR 56.8 million.

CEO Dr. Daniel Schmitt states, “There has been no recovery in the industry yet, with weak demand from the furniture and wood construction sectors persisting.”

Order intake increased 4% to EUR 699 million, with a decline in order backlog to EUR 833 million as of June 30, 2024. Job cuts announced in late 2023 were achieved voluntarily, avoiding operational layoffs.

Capacity reductions are expected to cut fixed costs by EUR 25 million this year, with EUR 50 million in savings anticipated from 2025.