GERMANY - Responding to a significant decline in order intake during the first nine months of 2023, the Homag Group is implementing measures, including cutting nearly 600 jobs globally.

Despite the lower order intake, the company maintained high sales and earnings levels in the first three quarters of 2023, attributed to a substantial order backlog at the beginning of the year. Order intake decreased by 32 percent to EUR 968 million, with sales reaching EUR 1,222 million. The order backlog gradually decreased to EUR 832 million by September 30, 2023. EBIT remained at EUR 84.5 million, and the group employed 7,482 people as of September 30, 2023. Extraordinary expenses, estimated at €35 to 50 million, will impact the fourth-quarter financials, causing full-year earnings to fall below the previous year's levels in 2023.

“The sharp decline in order receipts will hit us with a delayed effect and result in a substantial decline of up to 15% in sales in 2024,” explains Dr. Daniel Schmitt. “With this package of measures, we want to adjust our cost structure so as to limit the impact on our earnings. We stand to benefit from this in the medium and long term and will grow again profitably when the next upswing emerges.”