The HOMAG Group has reported strong demand in the third quarter of 2021 and as a result, order intake after the first nine months has already exceeded the company’s previous full-year record achieved in 2017.
HOMAG Group has increased its operating result more than three-fold over the previous year to 1.39 billion euros. Of course last year was ‘heavily influenced by the coronavirus pandemic, but the substantial record in new orders at the end of the first three quarters testifies to the currently strong demand for our solutions,” said HOMAG Group CEO Ralf W. Dieter
“Order intake grew sharply for stand-alone machines and increasingly also in systems business with large-scale plants,” Dieter added. “This is evident in all regions worldwide, with the highest growth rates achieved in China and in Europe with a strong German market.”
Among other things, HOMAG attributes the significant increase in service business to the fact that many customers are operating at high capacity utilization and require more spare parts.
HOMAG is also experiencing supply chain constraints, particularly with regard to electronic components.
“We are also feeling the effects of the global supply chain problems in the form of repeated sporadic shortfalls,” said Dieter. “Our global purchasing teams are working flat out here to ensure the shortest possible delivery times for our customers.”
In the third quarter, the Solid Wood segment, which is composed of the HOMAG Group’s business in production systems for timber house construction, received its largest order ever.
“Under this order, we are supplying the production equipment for a new factory in which timber construction elements, such as walls and ceilings, are to be manufactured in large quantities and on a highly automated basis,” said Dr. Daniel Schmitt, a member of the Board of Management, who will be taking over as Chief Executive Officer of HOMAG Group AG effective January 1, 2022.
“This large-scale project offers great potential for the future and marks an important step on the way towards the industrialization of wood element construction. We continue to see great opportunities for future growth in this segment.”