HOMAG Group Reports Sales and Earnings Decline in Q1 2024

HOMAG Group reports 14% decline in sales to EUR 347 million in Q1 2024 due to decreased demand in woodworking industry. Parent company Dürr AG experiences record order intake of EUR 1.488 billion in same period, driven by automotive industry demand.

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Aqsa Younas Rana
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HOMAG Group Reports Sales and Earnings Decline in Q1 2024

HOMAG Group Reports Sales and Earnings Decline in Q1 2024

HOMAG Group, a subsidiary of Dürr AG, reported a 14% decline in sales to EUR 347 million in the first quarter of 2024. The company's earnings before interest and taxes (EBIT) before extraordinary effects also fell to EUR 10.8 million. The decline in sales and earnings is attributed to decreased demand in the woodworking industry.

Why this matters: The decline in HOMAG Group's sales and earnings serves as a bellwether for the broader industrial machinery market, highlighting the challenges faced by companies in this sector. As a leading player in the industry, HOMAG Group's performance has implications for the global economy and the companies that rely on its machinery.

Despite the challenging market conditions, HOMAG Group is taking measures to adapt. "We are increasing flexibility in the face of demand fluctuations and thus result resilience," said Dr. Jochen Weyrauch, CEO of Dürr AG. The company aims to strengthen its ability to navigate the ups and downs of the market and maintain profitability.

HOMAG Group is part of Dürr AG, a leading global mechanical and plant engineering firm. Dürr AG's expertise lies in automation, digitalization, and energy efficiency, enabling sustainable production processes for industries such as automotive and furniture manufacturing. In 2023, Dürr AG reported revenue of EUR 4.6 billion.

While HOMAG Group faced headwinds in Q1 2024, its parent company Dürr AG experienced a record order intake of EUR 1.488 billion in the same period. The strong performance was driven by high demand from the automotive industry and the inclusion of BBS Automation, which Dürr AG acquired in August 2023.

The contrasting fortunes of HOMAG Group and Dürr AG in Q1 2024 highlight the varying dynamics within different segments of the industrial machinery market. As HOMAG Group navigates decreased demand in the woodworking sector, it will focus on enhancing flexibility and resilience to weather the challenges and position itself for future growth opportunities.

Key Takeaways

  • HOMAG Group's Q1 2024 sales declined 14% to EUR 347 million.
  • EBIT before extraordinary effects fell to EUR 10.8 million due to decreased woodworking demand.
  • HOMAG Group's performance is a bellwether for the industrial machinery market.
  • Dürr AG, HOMAG's parent company, reported a record order intake of EUR 1.488 billion in Q1 2024.
  • HOMAG Group aims to increase flexibility to navigate demand fluctuations and maintain profitability.