GERMANY – Homag Group sales revenue in the first three months of 2020 amounted to EUR 290 million, down nine percent on the prior-year period (1Q-2019: EUR 319 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.”
Contact with customers is also generally stable, as Paasivaara continues to explain. “It is true that the situation is developing with very different dynamics in the individual countries and regions. But in all markets we can support our customers with our digital tools and communication channels. This includes, for example, virtual planning with the digital twin or our wide range of service apps.” Nevertheless, the reluctance of customers to invest is clearly noticeable. For the time being, the Homag Group expects the market to remain cloudy, which will lead to a significant year-on-year decline in order intake, particularly in the second quarter of 2020. A gradual recovery is expected in the second half of the year.
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