EQS-Adhoc: Homag Group AG: Package of measures adopted to boost efficiency and reduce capacity at HOMAG

HOMAG Group AG – SIN: 529720 / ISIN: DE0005297204

Schopfloch, November 7, 2023 — The HOMAG Group will be implementing a package of measures to enhance its efficiency and adjust its capacity. The resultant extraordinary expenses are valued at €35 to 50 million and will be placed on the books in the fourth quarter of 2023. The main element of the package entails the planned elimination of just under 600 jobs in Germany and abroad. This will generate recurring savings of initially around €25 million in 2024 and – following the completion of the program – of roughly €50 million per year from 2025.

As a result of a pronounced cyclical decline in demand in the market for woodworking machinery, the HOMAG Group’s order intake dropped by 32% in the first nine months of 2023. This is expected to result in a decline of up to 15% in sales in 2024. The purpose of the planned savings is to limit the effect of the lower sales on earnings and help ensure that the HOMAG Group delivers an EBIT margin of 2.0 to 4.0% before extraordinary effects in 2024. At the same time, the package of measures will improve HOMAG Group’s basis for profitable growth in the future. In addition to the planned job cuts, the package also entails other flexibilization instruments such as the reduction of working-hour accounts and short-time work.

In view of the additional extraordinary expenses in the fourth quarter, HOMAG Group AG now expects lower earnings before tax and profit transfer in 2023. Prior to this, it had projected a slight increase.

Contact:

HOMAG Group AG
Jens Fahlbusch
Communications
Phone: +49 7443 13-2796
jens.fahlbusch@durr.com