Dürr Aktiengesellschaft / Key word(s): Restructure of Company/Change in Forecast
Package of measures adopted to boost efficiency and reduce capacity at HOMAG
Dürr AG – WKN 556520 / ISIN DE0005565204
Bietigheim-Bissingen, November 7, 2023 — The HOMAG Group (Woodworking Machinery and Systems division), which belongs to the Dürr Group, will be implementing a package of measures to enhance its efficiency and adjust its capacity. The resultant extraordinary expenses are valued at €35 to 50 million and will be placed on the books in the fourth quarter of 2023. The main element of the package entails the planned elimination of just under 600 jobs at HOMAG in Germany and abroad. This is to yield recurring savings of initially around €25 million in 2024 and – following the completion of the program – of roughly €50 million annually from 2025.
As a result of a pronounced cyclical decline in demand in the market for woodworking machinery, HOMAG’s order intake dropped by 32% in the first nine months of 2023. This is expected to result in a decline of up to 15% in sales in 2024. The purpose of the planned savings is to limit the effect of the lower sales on earnings and to help ensure that HOMAG delivers an EBIT margin of 2.0 to 4.0% before extraordinary effects in 2024. At the same time, the package of measures will improve HOMAG’s basis for profitable growth in the future. In addition to the planned job cuts, the package also entails other flexibilization instruments such as the reduction of working-hour accounts and short-time work.
In view of the additional extraordinary expenses at HOMAG in the fourth quarter, the Dürr Group is adjusting its forecast for the EBIT margin after extraordinary effects in 2023 from 5.6 to 6.6% to now 4.5 to 5.5%. The forecast for earnings after tax has been scaled back from €160 to 210 million to now €110 to 160 million for 2023. The full-year target for the EBIT margin before extraordinary expenses remains unchanged at 6.0 to 7.0% and, on the basis of the Board of Management’s current estimates, will be achieved. The targets for order intake, sales and free cash flow for 2023 are also confirmed in the light of the current figures.
End of Inside Information
Information and Explanation of the Issuer to this announcement:
The Dürr Group is one of the world's leading mechanical and plant engineering firms with particular expertise in the technology fields of automation, digitalization, and energy efficiency. Its products, systems, and services enable highly efficient and sustainable manufacturing processes – mainly in the automotive industry and for producers of furniture and timber houses, but also in sectors such as the chemical and pharmaceutical industries, medical devices, electrical engineering, and battery production. In 2022, the company generated sales of €4.3 billion. The Dürr Group has over 20,500 employees and 140 business locations in 32 countries, and it operates in the market with five divisions:
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|Listed:||Regulated Market in Frankfurt (Prime Standard), Stuttgart; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Tradegate Exchange|
|EQS News ID:||1767501|
|End of Announcement||EQS News Service|