Homag Group AG — Earnings Release 2011

Aug 1, 2011

News Details

Ad-hoc | 1 August 2011 14:15

HOMAG Group adjusts projected results downward

Homag Group AG / Key word(s): Change in Forecast

01.08.2011 14:15

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Personnel and restructuring expenses higher than expected

Schopfloch, August 1, 2011. HOMAG Group AG did not reach its results
targets in the second quarter of 2011 and is therefore adjusting its
projected results for the whole of 2011 downward. This is a consequence of
unplanned, high personnel costs in connection with customer projects and
foreseeable repercussions from increases in the cost of materials. In
addition, the ongoing restructuring at three subsidiaries is expected to
cause a greater expense than initially anticipated, placing a burden on the
effective tax rate.

As talks are still ongoing with employee representatives concerning the
continuation of restructuring at the three subsidiaries BÜTFERING, FRIZ and
TORWEGGE, it is still not possible to put an exact figure on the
restructuring cost going forward. For 2011 as a whole, the management board
anticipates EBITDA before extraordinary restructuring expenses and before
employee participation expenses at roughly the same level as the prior year
(EUR 65.1 million) and a net profit below the prior-year level owing to the
higher tax rate that is anticipated. For 2011, the HOMAG Group had until
now forecast an increase in EBITDA and intended to significantly raise its
net profit.

According to the preliminary figures, EBITDA before extraordinary
restructuring expenses and before employee participation expenses came to
EUR 14.0 million in the second quarter of 2011 (prior year: EUR 15.0
million). Particularly the special effects of the restructuring of the
subsidiary BÜTFERING increased the effective tax rate in the second quarter
of 2011 to 96 percent (prior year: 36 percent), placing an additional
burden on the preliminary quarterly result, which stands at EUR 0.0 million
after non-controlling interests (prior year: EUR 1.6 million).

The Group's sales revenue and order intake continue to show the same
positive trends as before. Here, the HOMAG Group was able to hit its
targets and, based on preliminary figures, increase its sales revenue by
some 10 percent to EUR 198.7 million in the second quarter of 2011 (prior
year: EUR 181.1 million). Order intake rose by about 12 percent, reaching
EUR 151.3 million (prior year: EUR 134.5 million). The current sales
revenue and order intake projections for 2011 are confirmed. This would
still result in a mid-single-digit percentage increase in sales revenue on
the 2010 level and slight growth in order intake.

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Information and Explaination of the Issuer to this News:

Background information
With its 17 specialized production and assembly companies worldwide, 21
group-owned sales and service companies and approximately 60 exclusive
sales partners, HOMAG Group AG's market position is excellent and its
portfolio as a comprehensive system supplier and technology partner makes
it unique. Backed by a workforce of some 5,000 employees, the company sees
itself as the leading global manufacturer for plants and machinery for the
woodworking and wood materials industry for the production of furniture and
construction elements as well as timber frame houses. The group also offers
its customers a wide range of services in related areas for production
machines and equipment. HOMAG Group AG shares have been trading on the
Prime Standard of the Frankfurt Stock Exchange since July 13, 2007.

Disclaimer
This press release contains certain statements relating to the future.
Future-oriented statements are all those statements that do not pertain to
historical facts and events or expressions pertaining to the future such as
'believes', 'estimates', 'assumes', 'forecasts', 'intend', 'may', 'will',
'should' or similar expressions. Such future-oriented statements are
subject to risks and uncertainty since they relate to future events and are
based on current assumptions of the company, which may not occur in the
future or may not occur in the anticipated form. The company points out
that such future-oriented statements do not guarantee the future; actual
results including the financial position and the profitability of the HOMAG
Group as well as the development of economic and regulatory framework
conditions may deviate significantly (and prove unfavorable) from what is
expressly or implicitly assumed or described in these statements. Even if
the actual results of the HOMAG Group including the financial position and
profitability as well as the economic and regulatory framework conditions
should coincide with the future-oriented statements in this press release,
it cannot be guaranteed that the same will hold true in the future.

Information:

HOMAG Group AG
Investor Relations
Simone Mueller
Phone: +49 7443 13-2034
simone.mueller@homag-group.com
www.homag-group.com

01.08.2011 DGAP's Distribution Services include Regulatory Announcements,
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Language: English
Company: Homag Group AG
Homagstr. 3-5
72296 Schopfloch
Germany
Phone: +49 (0)7443 / 13 - 0
Fax: +49 (0)7443 / 13 - 2300
E-mail: info@homag-group.de
Internet: www.homag-group.de
ISIN: DE0005297204
WKN: 529720
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart

End of Announcement DGAP News-Service

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