GERMANY - Homag is taking steps to continue its sales and earnings growth. The world market leader of woodworking machinery is fundamentally reorganizing its production at the Schopfloch site, thus responding to the increased volume of activity in systems business with complete production lines.

This measure is meant to solve production bottlenecks that have recently been affecting Homag’s growth.

For automated and digitally networked production lines, Homag has built up a strong position over the previous years. It also benefits from the high demand for systems for efficient, batch size 1 production of customized furniture. In 2019, Homag expects another rise in sales with a margin increase.

“Homag has made good progress with its optimization strategy. This is reflected in the substantial earnings improvements, which have been achieved continuously since 2014. The reorganization in Schopfloch is another important step in this direction”, says Ralf W. DieterCEO of Dürr AG, Homag’s holding company.

Homag also reported that sales and profits at the production sites are developing as planned and more growth is expected in the coming years. But the pace of growth will be more moderate, being recently affected by bottlenecks in production. Although the company anticipates another profit improvement in 2018, it is expected that EBIT will not reach the target set by more than € 10 million.