The company said 2005 was a “highly positive trading year” but soaring prices for raw material and a strong euro squeezed profit margins.
Homag’s provisional financial results show a 9% rise in incoming orders, valued at €533m, while 176 new jobs were created throughout the company group.
Homag board spokesperson Klaus Bukenberger said the group was experiencing a high rate of incoming orders so far in 2006.
The group intends to expand its production facilities this year, including a substanial expansion to the Polish plant, as well as the Weinmann and Weeke factories in Germany.
Homag will also launch its “Project 2008” – a response to the “tougher” competitive environment. The project will expand the group’s market leadership, sharpen the competitive edge of products and improve financial and earning power.
