Homag profitability improves in Q3

23 November 2011

Third quarter sales and profits have improved at Homag, the world’s largest woodworking machinery manufacturer.

But the German giant still expects to record a net loss during 2011 due to restructuring measures costing €20m.

Sales grew by 20% in Q3 to €204.6m (2010: €171m), while net profits improved to €2.7m (2010: €300,000). Operating profits before employee expenses and extraordinary restructuring costs increased 25% to €17.1m (2010: €13.7m).

“Here we can see the impact of our cost-cutting measures that we adopted and implemented in response to the poorer results for the first six months of 2011,said Homag ceo Dr Markus Flik. “These include a restrictive recruiting policy and clear targets to reduce other operating expenses.”

Sales for the first nine months were €578.9m (2010: €517.1m) with a net profit of €4.3m (2010: €3.1m).

Homag said prospects for 2012 are still dominated by substantial economic uncertainty “and our customers have become somewhat more cautious”.