DGAP-News: Hörmann Industries GmbH / Key word(s): Half Year Report/Half Year Results
HÖRMANN Industries publishes financial results for the first half of 2022
Kirchseeon, 31 August 2022 - HÖRMANN Industries GmbH (corporate bond, WKN: A2TSCH) today published its financial results for the first six months of 2022. In the reporting period, the Group's sales of EUR 298.5 million were at the level of the first half of 2021 (previous year: EUR 296.3 million). However, this figure includes around EUR 18 million of material price increases in the Automotive division that were passed on without affecting earnings; accordingly, value-added sales in the first six months of 2022 were lower than in the previous year. The decline in sales resulted primarily from the Automotive and Intralogistics divisions, which were negatively impacted in the first half of 2022 by the effects of the Ukraine conflict and the COVID-19 pandemic as well as the associated supply bottlenecks and project delays.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) of HÖRMANN Group amounted to EUR 6.4 million in the reporting period (previous year: EUR 19.8 million), while operating earnings before interest and taxes (EBIT) amounted to EUR 0.5 million (previous year: EUR 13.8 million). The first half of 2022 closed with a consolidated net loss of EUR 3.9 million (previous year: consolidated net profit of EUR 9.0 million).
Johann Schmid-Davis, CFO of HÖRMANN Industries GmbH: "Against the background of the very challenging economic environment, the earnings situation in the first half of the year is acceptable, but not satisfactory. Despite the renewed prolonged interruption of production in the Automotive division and the sharp rise in costs, including for materials and energy, we have achieved the operational turnaround and returned to profitability in the second quarter. We are cautiously optimistic for the remainder of the year and expect the earnings trend to continue to stabilise for the year as a whole."
Development of the business divisions
In the Automotive division, sales increased to EUR 189.0 million (previous year: EUR 181.2 million) due to material prices. Adjusted for inflation, value-added sales amounted to approximately EUR 179 million. In particular, the interruption of production by a major customer due to a shortage of wire harnesses from Ukraine had a significant negative impact on the development of sales and the earnings situation of the business division. In addition, the sharp rise in material and energy prices also had a negative impact on EBIT, which amounted to EUR -5.6 million after the first six months of 2022 (previous year: EUR 1.2 million).
After a very good 2021, the Communication division also made a good start to the new financial year 2022 and realised sales at the previous year's level of EUR 75.3 million in the reporting period (previous year: EUR 76.6 million). As in 2021, the division benefited from government stimulus programmes and additional state investments in the accelerated expansion of European Train Control System (ETCS) as well as from the efforts to enhance the efficiency of the network infrastructure for digitization in railway transport. By contrast, material availability problems, especially with electronic components, and the resulting price increases as well as project delays had an adverse effect on the development of earnings. Accordingly, earnings before interest and taxes fell to EUR 9.8 million compared to the first half of 2021 (previous year: EUR 13.8 million).
With sales of EUR 10.6 million - excluding the subsidiaries allocated to the new Intralogistics division - the Engineering division was, as expected, below the sales of the same period last year (EUR 12.8 million, as-if). Supported by a high-margin product and service mix, EBIT increased to EUR 2.4 million in the first half of 2022 (previous year: EUR 2.1 million) despite the sales decline.
The Intralogistics division, which was newly established in May 2022, generated sales of EUR 22.7 million in the first half of 2022 (previous year: EUR 26.0 million, as-if). The new division focused on the restructuring and the associated reorganisation in the reporting period. In addition to the structural realignment, the operational focus is on processing the multi-year project orders. The division currently has orders on hand of more than EUR 120 million, while a lack of personnel resources, supply bottlenecks, rises in material prices and construction delays are making project realisation much more difficult in some cases. These restrictions led to a negative EBIT of EUR -3.5 million in the first six months of 2022 (previous year: EUR -0.8 million).
Forecast for the full year 2022 slightly adjusted
Against the background of the business development in the first half of 2022, the HÖRMANN Group has slightly adjusted its forecast for the full year 2022. At Group level, based on an evaluation of the current order situation and a confident assessment of the business development, HÖRMANN Industries GmbH is forecasting total sales in 2022 of between EUR 630 million and EUR 660 million (previously: between EUR 585 million and EUR 610 million). The main reason for the increase in the sales forecast is inflation-related price increases, primarily in the Automotive division. In connection with the expected disproportionate sales realisation in the fourth quarter, a positive operating EBIT of between EUR 20.5 million and EUR 23.5 million (previously EUR 22 million to EUR 25 million) is targeted for the operating business. The reduction is due to the negative impact of higher material prices, primarily in the Automotive and Intralogistics divisions. In addition, there will be foreseeable increases in personnel and energy costs in the second half of the year. HÖRMANN Industries GmbH would like to point out that the actual results may deviate and depend heavily on the further development of material availability and energy costs, among other factors. In addition, the adjusted forecast does not take into account the possible consequences of a gas supply freeze, an escalation of the Ukrainian war or a renewed breakdown of supply chains.
The consolidated interim report for the period from 1 January to 30 June 2022 is available at https://www.hoermann-gruppe.com/en/investor-relations/financial-reports/financial-reports.
HÖRMANN Industries GmbH
Financial and business press:
About the HÖRMANN Group
The HÖRMANN Group has grown steadily since its formation in 1955. HÖRMANN Industries GmbH is the parent company of 32 subsidiaries operating in the Automotive, Communication, Intralogistics, and Engineering segments with a high degree of entrepreneurial initiative and independence. The HÖRMANN Group aims to offer its customers specific solutions and services that provide clear benefits and economic advantages. To achieve this, the HÖRMANN Group harnesses all of the broadly diversified and connected knowledge of its workforce of around 2,800 highly qualified employees across a wide range of technology areas.
Key figures at a glance (in EUR million)
31.08.2022 CET/CEST Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.