SCHOPFLOCH, GERMANY - Homag Group said orders rose 20 percent, and operating income increased 50 percent during the second quarter.
The world’s largest manufacturer of plant and machinery for the woodworking industry and cabinet makers, Homag says Stiles Machinery, which was fully acquired in February 2014, was responsible for almost half of sales revenue growth of around 16 percent to EUR 225.8 million.
|in EUR million|| Q2 2014
|| Q2 2013
“The integration of Stiles is progressing as planned," said CEO Dr. Markus Filk in announcing the results. "This acquisition allows us to fully participate in the current positive development of the U.S. market.”
As of June 30, 2014, the Homag Group had 5,450 employees 431 more than last year, with 3242 employees added with the acquisition of Stiles in the first quarter of 2014. The headcount also further increased elsewhere in the U.S., China and Poland.
The HOMAG Group says it expects about half of its sales revenue growth going forward to result from the Stiles acquisition. Homag says acquisition-related costs at Stiles are expected to slightly exceed the additional contribution to profit for a short period, then anticipates a positive contribution to earnings from the acquisition in 2015.
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