HOMAG Group faces challenges in the first half of 2024

In the first half of 2024, HOMAG Group, a global leader in integrated solutions for the woodworking industry, continues to feel the effects of customers' reluctance to invest. The company's sales and earnings saw a decline during the period, reflecting market trends.

Key figures and market trends

- Orders rose slightly by 4% to €699m, compared with €671m in the same period last year.
- The order backlog decreased to €833 million through June 30, 2024 from €930 million in the prior year.
- Sales fell 14% to €706m from €817m in the first half of 2023.
- EBIT before extraordinary effects fell to €21.5 million, compared to €56.8 million in the same period last year.

Dr. Daniel Schmitt, CEO of HOMAG Group, pointed out that "The first half of 2024 has not yet brought a recovery in our industry as expected. Low demand in the furniture and wood construction industries has persisted and is especially reflected in the low level of individual machine business."

Adapting to new market conditions

To address this persistent market weakness, HOMAG Group initiated a package of measures in November 2023 to adjust capacity and increase efficiency. These measures include:

Around 600 job cuts worldwide, including 350 in Germany.
Implement a volunteer program and use natural turnover to avoid redundancies.
An estimated reduction in fixed costs of €25 million this year and total savings of €50 million from 2025.

Dr. Schmitt stressed the importance of these measures: "Our financial performance this year shows how important it is to implement these measures to secure the future of the HOMAG Group and to maintain our long-term competitiveness."

Positive outlook in services

Despite the challenges, the services business recorded a positive growth of around 4%, thanks to various initiatives implemented by the company.

HOMAG Group remains a leading provider of integrated manufacturing solutions for the woodworking and joinery industries, with a significant global presence and a workforce of more than 7,000 employees. The company continues to focus on digitized manufacturing solutions and the development of the open ecosystem "tapio", an IoT platform for the wood industry.