Economy slowdown reduces Homag’s incoming orders

GERMANY - According to preliminary figures, in the 2019 financial year, the Homag Group sales summed up to € 1,279 million (previous year: € 1,298 million).

872HOMAG2The order backlog was worth € 546 million as of December 31, 2019 (12/31/2019: € 602 million), and incoming orders reduced significantly to € 1,220 million (previous year: € 1,337 million). As of December 31, 2019, the company had 6,569 employees (12/31/2018: 6,593).

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 optimize 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 € 46.2 million (previous year: € 94.9 million). Even without these special expenses, the operating EBIT decreased by 13% to € 82.8 million. This was largely due to the weak state of the market and under-utilization.

“2019 saw a distinct market slowdown in business with the furniture industry”, emphasizes 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 € 41.8 million and primarily related to digital and IT projects and measures to improve productivity.

Once again this year, the Homag Group aims to impress its customers with a comprehensive range of solutions. Paasivaara: “One of our main themes is the organization of woodworking shops in the digital age. We are focusing on practical solutions that will make everyday work life easier for joiners and carpenters and increase the efficiency of businesses. We also offer digital assistants from many areas which offer real benefits and added value.”

 

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