German woodworking machinery manufacturer Homag AG recorded a growth in sales during the first nine months of 2005 despite what it describes as a “stagnating world market”.
The company’s sales reached €500m, up from €486m a year ago, while the volume of incoming orders rose 7% to €496m.
Homag chairman Klaus Bukenberger said the growth was due to the success of innovative products launched at Ligna and the company’s consistent expansion strategy.
But the management board is still “dissatisfied with the income situation”, citing the negative effects of tough international competition, high raw material and energy prices and the strong euro.
Homag said it had extended its worldwide presence during 2005 and its highest growth rates were recorded in Asia, while the domestic and western European markets had given the company grounds for optimism. North and South American business suffered a decline.
The company recently completed a further stage of its extension project for the Shanghai plant, which now covers 10,000m2 and employs 200 people manufacturing products mainly for the Asian market. Homag’s Polish manufacturing base will also be further expanded in 2006.
Homag remains confident of achieving middle single-digit percentage growth for the whole of 2005, with the recent sale of subsidiary IMA Klessman GmbH placing the company in a “favourable position with a clearly defined role in the market place”.
