Dürr Aktiengesellschaft: Efficiency enhancement and structural measures at HOMAG, operating outlook for Dürr Group unchanged for 2019
Efficiency enhancement and structural measures at HOMAG, operating outlook for Dürr Group unchanged for 2019 Bietigheim-Bissingen, November 6, 2019 - The Dürr Group has adopted a package of measures aimed at achieving substantial efficiency gains in the Woodworking Machinery and Systems division (HOMAG Group). The package entails non-recurring expenses of EUR 40 million, of which around EUR 37 million will be arising in 2019. These measures are to generate annual savings of around EUR 15 million by 2021 at the latest.
Among other things, the HOMAG Group will be discontinuing production at its Hemmoor site in the German state of Lower Saxony and making further personal adjustments at other German facilities. All in all, roughly 350 out of 4,100 jobs in Germany are to be cut at HOMAG by 2020. In this way, HOMAG is actively addressing the structural overcapacities in Germany and responding to capacity additions in growth markets. In the previous years, HOMAG was able to fully utilize its domestic German capacities due to the extraordinarily strong demand in the furniture industry. However, demand for HOMAG is currently lower, a situation which is also likely to continue in 2020. It is in response to this that the package of measures, which also includes the merger of the Systems and Automation business units, is now being implemented. Currently, 63% of the workforce is based in Germany, whereas HOMAG generates 80% of its sales outside Germany.
In addition to the extraordinary expense for the package of measures at HOMAG (expenses of EUR 37 million in 2019), the Dürr Group faces an impairment of a further EUR 6 million in connection with a pending legal dispute in 2019.
At 6.0 to 6.5% for 2019, the Dürr Group's forecast for its EBIT margin before extraordinary effects is unchanged. Similarly, there are no changes to the full-year targets for order intake (EUR 3.8 to 4.1 billion) and sales (EUR 3.9 to 4.1 billion). Business with the automotive industry is persistently stable and still in line with expectations.
The forecast for EBIT after extraordinary effects has been adjusted for 2019 to allow for the extraordinary effects arising from the measures outlined above. The EBIT margin is now expected to be in a range of 4.4 to 4.9% instead of the previously projected figure of 5.5 to 6.0%. Earnings after tax should now reach EUR 115 to 130 million, down from the previous forecast of EUR 145 to 160 million.
Contact: Dürr AG Günter Dielmann / Mathias Christen Corporate Communications & Investor Relations Phone +49 7142 78-1785 / -1381 Fax +49 7142 78-1716 E-Mail firstname.lastname@example.org
The Dürr Group is one of the world's leading mechanical and plant engineering firms with extensive expertise in automation and digitization/Industry 4.0. Its products, systems and services enable highly efficient manufacturing processes in different industries. The Dürr Group supplies sectors like the automotive industry, mechanical engineering, chemical, pharmaceutical and woodworking industries. It generated sales of EUR 3.87 billion in 2018. In October 2018, the Dürr Group acquired the industrial environmental technology business of US-based company Babcock & Wilcox, comprising the Megtec and Universal brands. Since then, it has had around 16,500 employees and 108 business locations in 32 countries. The Group operates in the market with five divisions:
* Paint and Final Assembly Systems: paint shops and final assembly systems for the automotive industry * Application Technology: robot technologies for the automated application of paint, sealants and adhesives * Clean Technology Systems: air pollution control, noise abatement systems and battery coating lines * Measuring and Process Systems: balancing equipment as well as assembly, testing and filling technology * Woodworking Machinery and Systems: machinery and equipment for the woodworking industry
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06-Nov-2019 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.deLanguage: English Company: Dürr Aktiengesellschaft Carl-Benz-Str. 34 74321 Bietigheim-Bissingen
Germany Phone: 07142 78-0 Fax: 07142 78-1716 E-mail: email@example.com Internet: www.durr-group.com ISIN: DE0005565204, XS1048589458 WKN: 556520, A1YC44 Indices: MDAX Listed: Regulated Market in Frankfurt (Prime Standard), Stuttgart; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Tradegate Exchange EQS News ID: 905867 End of Announcement DGAP News Service
905867 06-Nov-2019 CET/CEST