Homag Encountered a Significant Slump in Eastern European Business

Homag encountered a significant slump in Eastern European business in the first half of 2012. Order intake (excluding commercial products, replacement parts and services) was down 39.2% compared with last year. The company blamed this on mounting financing problems and project orders placed in the first half of 2011. Central European markets (Germany, Austria and Switzerland) dipped only slightly by 3.3% compared with last year. Homag felt that its operations in this region continued to reap the rewards of relatively brisk investment activity by German furniture producers. The group recorded a 12.6% rise in Western European orders from a low level last year. New orders from Asia leapt by 18.9%. China fared better again after a brief lull. However, the Indian market continues to fall short of expectations due to growing economic disruption. Homag’s North and South America region saw dwindling orders in Brazil and Canada being almost offset by the resurgent US market. All in all, American order intake was down 2.1%. Source: euwid-wood-products