GERMANY - Preliminary data indicates that despite economic challenges, the Homag Group slightly increased sales revenue to EUR 1,625 million, attributing this to a high initial order backlog and service sector expansion.
However, by December 31, 2023, the backlog had decreased to EUR 841 million from EUR 1,102 million in 2022.
Sales growth also led to a four percent rise in earnings before extraordinary effects, reaching EUR 129.7 million. Despite a significant Chinese order, 2023's order intake dropped by about 18% to EUR 1,395 million due to market weaknesses exacerbated by a construction industry crisis.
In response, Homag initiated capacity adjustments, including reducing 600 jobs globally to cut fixed costs by EUR 25 million initially and EUR 50 million annually from 2025 onwards. This incurred over EUR 50 million in extraordinary expenses, leading to an EBIT decrease to EUR 71.1 million.
Dr. Daniel Schmitt, Homag CEO, doesn't foresee market recovery before 2024-end, expecting current fiscal year order intake to match last year's at best. Consequently, a sharp sales and earnings decline is projected. Capacity adjustments aim to bolster flexibility and mitigate future market fluctuations.
