Aug 14, 2012. /Lesprom Network/. HOMAG Group, the world’s leading manufacturer for plant and machinery for the woodworking industry and for cabinet makers, performed well on the market despite the more challenging business environment and increased its order intake to Euro 156.6 million (prior year: Euro 151.3 million) in the second quarter of 2012, as the company said in the press release received by Lesprom Network. “In this way we were able to grow somewhat – contrary to the trend in the industry – particularly thanks to a material contribution made by the project business,” explains Dr. Markus Flik, CEO. According to the management board, the decrease in sales revenue between April and June to Euro 188.3 million (prior year: Euro 198.7 million) is due to two aspects. On the one hand, this is due to the application of the percentage-of-completion (PoC) method according to which sales revenue and earnings from large-scale projects are recognized based on their percentage of completion. Based on the stronger project business at the start of 2011 there was more plant and machinery in process in the prior-year quarter. This resulted in a Euro 12.5 million higher overall positive effect on sales revenue than in the reporting quarter. On the other, in the prior-year period, nearly Euro 7 million more sales revenue was earned on account of the large-scale project for our customer Mekran. In spite of this lower sales revenue, operative EBITDA before employee participation expenses and before extraordinary expenses increased slightly to Euro 14.2 million (prior year: Euro 14.0 million). “In the quarter-on-quarter comparison it should be noted that there was a negative effect of Euro 5.1 million on earnings resulting from the application of the PoC method that had an impact on all key earnings figures,” emphasizes CFO Hans-Dieter Schumacher. EBT after employee participation expenses and after extraordinary expenses came to Euro 1.6 million, as in the prior year. The net loss for the period after non-controlling interests came to Euro 0.2 million (prior year: net profit Euro 0.0 million), and leads to earnings per share of Euro -0.01 (prior year: Euro 0.00). The net loss for the period resulted from the very high tax expense rate of 126 percent. “Above all, this is due to losses incurred at some subsidiaries for which no deferred tax assets could be recognized,” says Schumacher. Compared to 5,141 employees at year-end 2011, the Group’s headcount decreased to 5,038 employees as of June 30, 2012 (prior year: 5,075 employees). First six months of 2012 In the first six months of the year, the HOMAG Group’s sales revenue rose slightly to Euro 376.0 million (prior year: Euro 374.3 million). Order intake decreased to Euro 327.2 million (prior year: EUR 339.1 million). The Group was able to improve all key earnings figures for the period from January to June 2012 compared to the prior year. For instance, operative EBITDA before employee participation expenses and before extraordinary expenses climbed to Euro 30.9 million (prior year: Euro 28.6 million). Euro after employee profit participation expenses and after extraordinary expenses rose to Euro 8.3 million (prior year: Euro 5.0 million). The net profit for the period after non-controlling interests improved to Euro 3.0 million (prior year: Euro 1.5 million), leading to earnings per share of Euro 0.19 (prior year: Euro 0.10). Outlook The management board has confirmed forecasts made to date for fiscal 2012. “Even though our targets are in the meantime considered ambitious based on the ever more challenging business environment, we nevertheless aim to realize them,” explains Dr. Markus Flik. The objective is to reach an order intake that is roughly at the same level as 2011. As regards sales revenue, the aim is to reach about Euro 750 million in 2012 and also thereby match the level of 2011 – adjusted for the special effect of the large-scale project Mekran. Subject to these conditions, the management board expects at the level of the Group an operative EBITDA (before employee participation expenses and before extraordinary expenses) of around Euro 65 million and expects a net profit for the year. These forecasts are still subject to the condition that the euro crisis does not deteriorate further and that there are no further disruptions on the financial markets or in economic conditions.