GERMANY - The Homag Group, the world’s largest woodworking machinery manufacturer, was able to increase sales by 8.3% to EUR 319.2 million in 1Q-2019, against sales of EUR 294.6 million reached in 1Q-2018.
In the first quarter of 2019 EBIT contracted by 6.9% to EUR 18.4 million, with the EBIT margin coming in at 5.8%, down from 6.7% in the same period of the previous year. One reason for this was that production and selling costs were higher than budgeted. In addition, shortfalls in capacity utilization due to product-mix factors arose in some areas. Nevertheless, Homag is confident that it will achieve its full-year target EBIT margin of 6.7 to 7.5% in 2019.
Order intake for Homag fell sharply in 1Q-2019, down 19.4% when compared to an extraordinarily strong first quarter of 2018. But as the company points out, the first quarter of 2018 included an order of approximately EUR 60 million from Poland, cancelled by the client later on in the year. With orders for EUR 334.6 million in 1Q-2019, order intake in the period was at a similar level as in the previous quarters.
At the Ligna 2019 tradeshow in Hanover later this month, the Homag Group wants to convince its customers with their innovative strength as a global market leader. “On an area of around 5,000 square meters, we present an extremely broad range of solutions for machines, cells, systems, software and services for woodworking,” says Pekka Paasivaara, Homag CEO. “We present integrated cell concepts in different performance classes. Thus, we also offer craft businesses the entry into digitization. With driverless transport systems and robots, we are also showing the Smart Factory.”
The Homag Group is the world's leading provider of integrated solutions for production in the woodworking industry and woodworking shops. With around 6500 employees Homag operates international production plants as well as sales and service companies. A global distribution network, represents Homag in more than 100 countries, thus achieving an estimated global market share over 30%. The Homag Group offers its customers solutions for digitized production, based on digital data continuity from point of sale through the entire production process, combined with a comprehensive software suite. The range of machines and systems available extends from individual machines for trade businesses to complete, networked production lines for highly industrialized, individual furniture production.
