Recorded a good first quarter 2020 with a slight increase in orders
Despite the corona pandemic, the Homag Group was able to close the first quarter of 2020 with production almost continuous at all major plants. In March, however, the first effects of the corona pandemic were already being felt at the successful mechanical engineering company. The acquisition of the trading partner in China was completed.
In the first three months of 2020, sales revenue of the Homag Group amounted to 290 million euros, down nine percent on the prior-year period (319 million euros). Order intake also fell by nine percent to 304 million euros (prior year: 335 million euros). At EUR 556 million, the order backlog as of 31 March 2020 was slightly higher than at the end of 2019 (31 December 2019: EUR 546 million). In the first quarter of 2020, the Homag Group generated operating EBIT of 16.1 million euros (prior year: 20.5 million euros). As of March 31, 2020, the Homag Group employed 6,613 people (March 31, 2019: 6,633).
Chairman of the Management Board Pekka Paasivaara explains: "We have made a good start to the year and in January and February our order intake was noticeably higher than in the previous year. However, in March the corona pandemic had a significant impact on us, as it did on the entire industry. Despite the current challenging situation, we acquired the remaining 75 percent of the shares in our long-standing sales and service partner in China at the beginning of May. We are thus investing in our global presence and are very well positioned for the expected market growth in China.
So far, the Homag Group has largely been able to maintain production even during the crisis. "Our supply chains are by and large stable," says Pekka Paasivaara. "Our hygiene measures introduced at an early stage are taking effect and I am very proud of how disciplined and responsible our employees are in dealing with this challenging situation. This keeps us fit for work."Contact with customers is also generally stable, as Paasivaara continues to explain. "It is true that the situation is developing with very different dynamics in the individual countries and regions. But in all markets we can support our customers with our digital tools and communication channels. This includes, for example, virtual planning with the digital twin or our wide range of service apps." Nevertheless, the reluctance of customers to invest is clearly noticeable. For the time being, the Homag Group expects the market to remain cloudy, which will lead to a significant year-on-year decline in order intake, particularly in the second quarter of 2020. A gradual recovery is expected in the second half of the year.