Following the very strong previous years, the Homag Group’s order intake declined in the first half of 2023. The company was, however, able to increase its sales.
Order intake decreased to Euro 671 million in the first six months of 2023 (previous year: Euro 1,031 million). “This slowdown in order intake does not come as a surprise,” emphasized CEO Dr. Daniel Schmitt. “After two years of exceptionally high investments, our customers are now more cautious due to high inflation and interest rates. We see this in all global regions.” The order backlog decreased to Euro 930 million as of June 30, 2023.
As a result of the high order backlog at the beginning of the year, Homag Group sales rose to Euro 817 million in the first half of the year, exceeding the already very high figure of the previous year (Euro 782 million). At Euro 56.8 million, EBIT before special items was close to the previous year’s level (Euro 58.6 million). It was impacted by lower earnings contributions from service, as many customers are not operating at full capacity as a result of subdued consumer demand, therefore requiring fewer spare parts and other services. In addition, one-off costs and higher research and development costs were incurred for the LIGNA trade show in May.
“We have adjusted to the more difficult market environment and declining order intake by implementing efficiency and cost-saving measures in order to strengthen our profitability,” Dr. Schmitt emphasized. “At the industry’s leading trade show LIGNA, we were able to inspire our customers with numerous innovations and create new investment incentives. We are confident that we will benefit from this as soon as the market situation improves again.”
The Homag Group is the world's leading provider of integrated solutions for production in the woodworking industry and woodworking shops.
