Slow brightening after corona losses in the first half of the year

In the second quarter of 2020, the Homag Group also felt the effects of the corona pandemic more strongly. Accordingly, order intake and sales revenue declined in the first half of 2020. Since June, however, the Group has again recorded a slight increase in customer activity in most countries.
“As expected, the weeks and months of global lockdowns have also been reflected in our half-year figures,” says CEO Pekka Paasivaara. “However, we are cautiously optimistic that we have bottomed out in the second quarter.”

In the first six months of 2020, sales revenue of the Homag Group fell by 13 percent to 552 million euros (prior year: 637 million euros) and order intake by 17 percent to 493 million euros (prior year: 591 million euros). As of June 30, 2020, the order backlog stood at EUR 480 million (December 31, 2019: EUR 546 million). In the first half of 2020, the HOMAG Group generated operating EBIT of EUR 10.7 million (prior year: EUR 39.4 million). As of June 30, 2020, the Group employed 6,498 people (June 30, 2019: 6,592).

Thanks to stable supply chains, the Homag Group has been able to largely maintain production to date. However, customers have been very cautious with regard to investments. Pekka Paasivaara: “Demand in the first half of the year was very subdued, especially in the project business with large-scale plants. Although we are seeing the beginning of a recovery in customer activities, we are still far from the pre-crisis level. From today’s perspective, we expect the market environment to improve slightly in the second half of the year. However, it is difficult to predict when a real upturn will set in.”

In the second quarter, the Homag Group made important investment decisions for a successful future despite the challenging situation. By acquiring the remaining 75 percent of the shares in its long-standing sales and service partner in China, the company has put itself in an even better position for the expected market growth in China. The remaining 24 percent of the shares in Weinmann Holzbausystemtechnik GmbH, the timber construction expert in the group, were also acquired. With this acquisition, the Homag Group is strengthening its commitment to the solid wood segment.