DGAP-News: The HOMAG Group plans to expand restructuring measures and expects to improve earnings in the medium term as a result
(firmenpresse) - DGAP-News: Homag Group AG / Key word(s): Miscellaneous/Change in
Forecast
The HOMAG Group plans to expand restructuring measures and expects to
improve earnings in the medium term as a result
07.10.2011 / 07:41
---------------------------------------------------------------------
The HOMAG Group plans to expand restructuring measures and expects to
improve earnings in the medium term as a result
- Extended scope of measures at FRIZ and TORWEGGE
- Restructuring at BÜTFERING as planned
- Concentration intended to strengthen the HOMAG Group's competiveness
Schopfloch, October 7, 2011. At its meeting yesterday, the supervisory
board of HOMAG Group AG approved the management board's proposal to expand
the restructuring measures already planned without prejudice to the rights
of the co-determination bodies. As a consequence of this decision, the
production and administration activities of the subsidiary FRIZ
Kaschiertechnik GmbH, Weinsberg, are to be discontinued. A development and
service unit of FRIZ specialized in surfacing technology, which employs 15
workers, is to be kept. The Löhne site is to be closed down completely with
operations at the subsidiary TORWEGGE Holzbearbeitungsmaschinen GmbH and
the service branch of WEEKE Bohrsysteme GmbH located there. The
restructuring of BÜTFERING Schleiftechnik GmbH, Beckum, which is to be
linked to WEEKE Bohrsysteme GmbH, is progressing as planned. About 180 jobs
are expected to be lost as a result of all these measures.
HOMAG Group AG's CEO, Dr. Markus Flik, regrets the measures, but believes
they are necessary: 'the companies FRIZ and TORWEGGE have been making
losses for several years now. We have intensively examined other avenues,
but have been unable to find a feasible alternative. In collaboration with
the works' councils, we are looking to find the best possible solutions for
the employees concerned. With this logical step, we are maneuvering the
HOMAG Group into a sustainable position, improving our competitiveness and
strengthening our earning power.' Once the full restructuring program is
completed, the management board expects to generate a sustained improvement
in operative EBITDA (before expenses from employee participation and before
extraordinary expenses) ranging between EUR 6 million and EUR 8 million
each year from 2013 onwards. Backed by this long-term improvement in
earnings, the HOMAG Group will be able to make further investments in
growth through innovation and expansion into new markets.
The newly developed products of BÜTFERING Schleiftechnik GmbH have proven
successful on the market and thereby lend a solid foundation to the HOMAG
Group's continued expansion strategy in the field of surfacing technology.
The strategically important product segments of the companies FRIZ and
TORWEGGE are to be expanded at HOMAG Holzbearbeitungssysteme GmbH in the
future. Flik explains: 'the machines and production lines that FRIZ and
TORWEGGE have been manufacturing until now are subject to massive
fluctuations in demand, which means that it is only possible to produce
them viably within a larger portfolio of products. The overarching aim of
our future group structure, is to further improve the efficiency of our
development and production by concentrating our operations at fewer sites,
a move that will allow us to safeguard jobs and the Group'sfuture in
general.'
Owing to the expansion of restructuring measures, the HOMAG Group's
extraordinary expenses are now expected to total about EUR 20 million in
2011. Of these, about EUR 16 million will affect liquidity. The largest
part of this amount shall be effective 2012. In light of this and the
anticipated very high effective tax rate, the HOMAG Group expects to incur
a small loss after taxes for 2011. By contrast, the forecast operative
EBITDA remains unchanged, and is still expected to match the prior-year
level in 2011 (EUR 65.1 million).
- - - - - - - - - -
Background information
With its 17 specialized production and assembly companies worldwide, 21
group-owned sales and service companies and approximately 60 exclusive
sales partners, HOMAG Group AG's market position is excellent and its
portfolio as a comprehensive system supplier and technology partner makes
it unique. Backed by a workforce of some 5,000 employees, the company sees
itself as the leading global manufacturer for plants and machinery for the
woodworking and wood materials industry for the production of furniture and
construction elements as well as timber frame houses. The group also offers
its customers a wide range of services in related areas for production
machines and equipment. HOMAG Group AG shares have been trading on the
Prime Standard of the Frankfurt Stock Exchange since July 13, 2007.
- - - - - - - - - -
Disclaimer
This press release contains certain statements relating to the future.
Future-oriented statements are all those statements that do not pertain to
historical facts and events or expressions pertaining to the future such as
'believes', 'estimates', 'assumes', 'forecasts', 'intend', 'may', 'will',
'should' or similar expressions. Such future-oriented statements are
subject to risks and uncertainty since they relate to future events and are
based on current assumptions of the company, which may not occur in the
future or may not occur in the anticipated form. The company points out
that such future-oriented statements do not guarantee the future; actual
results including the financial position and the profitability of the HOMAG
Group as well as the development of economic and regulatory framework
conditions may deviate significantly (and prove unfavorable) from what is
expressly or implicitly assumed or described in these statements. Even if
the actual results of the HOMAG Group including the financial position and
profitability as well as the economic and regulatory framework conditions
should coincide with the future-oriented statements in this press release,
it cannot be guaranteed that the same will hold true in the future.
Information:
HOMAG Group AG
Investor Relations
Simone Mueller
Phone: +49 7443 13-2034
simone.mueller(at)homag-group.com
www.homag-group.com
End of Corporate News
---------------------------------------------------------------------
07.10.2011 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------
Language: English
Company: Homag Group AG
Homagstr. 3-5
72296 Schopfloch
Germany
Phone: +49 (0)7443 / 13 - 0
Fax: +49 (0)7443 / 13 - 2300
E-mail: info(at)homag-group.de
Internet: www.homag-group.de
ISIN: DE0005297204
WKN: 529720
Listed:Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart
End of News DGAP News-Service
---------------------------------------------------------------------
141570 07.10.2011
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 07.10.2011 - 07:41 Uhr
Sprache: Deutsch
News-ID 73747
Anzahl Zeichen: 4346
contact information:
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 208 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"DGAP-News: The HOMAG Group plans to expand restructuring measures and expects to improve earnings in the medium term as a result"
steht unter der journalistisch-redaktionellen Verantwortung von
Homag Group AG (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
