HOMAG achieves positive first quarter 2020 sales
Published on : Monday, May 18, 2020
Despite the corona pandemic, the HOMAG Group’s first quarter of 2020 was at a good level. Production was almost without interruptions at all major plants. Nevertheless, in March the first effects of the corona pandemic became apparent. The acquisition of the sales & service partner in China was completed.
HOMAG Group’s sales revenue in the first three months of 2020 amounted to EUR 290 million, down nine percent on the prior-year period (EUR 319 million). Order intake also fell by nine percent to EUR 304 million (prior year: EUR 335 million). The order backlog stood at EUR 556 million as of 31 March 2020 and was slightly higher than at the end of 2019 (December 31, 2019: EUR 546 million). In the first quarter of 2020, the HOMAG Group generated operating EBIT of EUR 16.1 million (prior year: EUR 20.5 million). As of March 31, 2020, the Group employed 6,613 people (March 31, 2019: 6,633).
CEO 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 this currently challenging situation, we acquired the remaining 75% of the shares in our long-term 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.
The HOMAG Group has been able to maintain production to a large extent even during the crisis. “We could keep our supply chain stable,” says Pekka Paasivaara. “Our hygiene measures are taking effect and I am very proud of how disciplined and responsible our employees deal with this challenging situation. As a result, we are able to keep up our operative processes”.