Homag Group announces restructuring

Jan 13, 2011. /Lesprom Network/. Following the proposal of Homag Group AG’s management board, the supervisory board passed a resolution at its meeting on December to implement measures to restructure the group. Accordingly, the smaller entities of Friz Kaschiertechnik GmbH, Weinsberg, and Torwegge Holzbearbeitungssysteme GmbH, Löhne, are to be linked to larger entities within the Homag Group, as the company said in a press release received by Lesprom Network. The products of the two group entities Friz and Torwegge are of great strategic relevance for the Homag Group, supplementing its product portfolio in important areas. Technology from Friz and Torwegge consequently play an important role in the Homag Group’s core strategy, which entails offering industrial and workshop customers a complete range of products along their process chains, the company said. The restructuring measures will be implemented in several steps, improving EBITDA by more than Euro 1.5 million per annum in the medium term. As announced, however, these measures will already lead to extraordinary expenses in the 4Q. These will arise primarily from site relocations and moderate adjustments to headcount. Despite these additional extraordinary expenses of up to Euro 2 million incurred in 2010, there is no change to the forecast of a positive net profit for the full year 2010. Homag’s CEO, Rolf Knoll, is convinced that “the measures already introduced and those currently being reviewed will continue to safeguard the group’s strategic success in the medium and long term, enabling us to further expand our market position as global market leader.”