HÖRMANN Industries publishes financial results for the first quarter of 2021

HÖRMANN Industries GmbH (corporate bond, WKN: A2TSCH) today published its financial results for the first three months of 2021. In the reporting period, the Group's sales increased year-on-year from EUR 130.7 million to EUR 138.2 million. The increase in sales resulted disproportionately from the Automotive and Communication divisions. In the Automotive division, sales rose by EUR 16.5 million from EUR 72.1 million to EUR 88.6 million due to the strong rise in demand in the trucks and agricultural machinery product segments. However, the positive development in demand was offset by the growing shortage of materials, which in some cases led to a massive increase in material and personnel costs to ensure delivery capability and negatively impacted quarterly earnings. The Communication division benefited from government stimulus programmes and additional investment in the expansion of European Train Control Sytem (ETCS) and, with sales of EUR 34.1 million (previous year: EUR 27.0 million), reported year-on-year sales growth of EUR 7.1 million. The Engineering and Services divisions contributed EUR 12.9 million (previous year: EUR 27.9 million) and EUR 3.0 million respectively (previous year: EUR 3.7 million) to the Group’s sales. As anticipated, the Engineering division felt the late-cycle effects of the Corona crisis in the form of postponed order placements. The Services division also continued to be impacted by the temporary plant shutdowns in the automotive industry and the ongoing reluctance of customers in the mechanical engineering sector to place orders.

Earnings before interest, taxes, depreciation and amortization (EBITDA) of the HÖRMANN Group improved to EUR 8.4 million in the reporting period (previous year: EUR 3.2 million), while EBIT amounted to EUR 5.5 million (previous year: EUR 0.3 million). The first quarter of 2021 closed with a consolidated net income of EUR 3.5 million (previous year: EUR -1.0 million).

Earnings growth prospects

Dr. Michael Radke, CEO of HÖRMANN Industries GmbH: "Even though the COVID-19 pandemic is certainly not over yet, we are seeing clear trends of economic recovery, which are reflected in the encouraging sales and earnings growth in the first quarter of 2021. The significant increase in demand also had a positive impact on sales in our Automotive division, which was severely affected in 2020. However, the global economic recovery is currently leading to a shortage of raw materials and associated considerable price increases, which may have a negative impact on our further earnings development. Nevertheless, we again expect significant earnings growth for the current full year." 

At Group level, based on the assessment of the current order situation in the individual divisions, HÖRMANN Industries GmbH expects total sales of EUR 540 to 560 million in 2021 (2020: EUR 521.5 million). Taking this sales forecast and the described higher costs of materials into account, the Company is aiming for an operating EBIT of around EUR 20 million (2020: EUR 12.6 million).

The consolidated interim report for the period from 1 January to 31 March 2021 is available at
https://www.hoermann-gruppe.com/en/investor-relations/financial-publications/financial-reports.