HÖRMANN Industries publishes half-year financial statements for 2020

HÖRMANN Industries GmbH (corporate bond, German Securities Code Number: A2TSCH) today published its consolidated interim report for the first half of 2020. Sales declined from EUR 299.0 million in the previous year to EUR 234.2 million in the first six months. Earnings before interest, taxes, depreciation and amortisation (EBITDA) fell to EUR 6.2 million in the reporting period (previous year: EUR 14.4 million) and operating EBIT amounted to EUR  0.4 million (previous year: EUR 8.7 million). The first half of 2020 closed with consolidated net income of EUR -4.5 million (previous year: EUR 4.2 million).

The sales downturn is a result, in roughly equal measures, of the deconsolidation of Hörmann Automotive Penzberg GmbH as at 1 April 2019 (sales contribution in H1 2019: EUR 27.3 million), the planned decline in the order situation in the Heavy Trucks business segment (approx. EUR 9 million) and the unexpected spread of COVID-19 (cumulative around EUR 40 million). The latter hit the Automotive and Services divisions especially hard, whereas the Communication and Engineering divisions increased sales and earnings in the first half of 2020.

Johann Schmid-Davis, CFO of HÖRMANN Industries GmbH: “The COVID-19 pandemic has been having a significant impact on our performance since mid-March. Nonetheless, we have been able to offset at least some of these effects thanks to our diversified group structure and the measures we have taken, especially in the Automotive and Services divisions. In addition, our sound financial planning and the confirmation we recently received for the EUR 40 million KfW loan that we applied for as a precautionary measure mean that we have sufficient liquid funds to safely steer the company through this unprecedented crisis. Given current development, which indicates a gradual recovery in the second half of 2020, we expect to achieve a slightly positive operating result for the full year.”

Performance in the divisions

The Automotive division was significantly affected by the many weeks of interrupted production in the automotive industry. Sales in the first six months of 2020 fell to EUR 118.5 million (previous year EUR 207.1 million). EBIT decreased from EUR 3.0 million in the previous year to EUR -11.3 million in 2020. Production at the Penzberg site was discontinued on 30 June 2020 as planned. Within one year, around 6,000 items were relocated without interrupting production, considerably expanding the Banovce, Slovakia, plant.

The Services division was also affected by the industry shutdown. In this tough market environment, sales in the Services division decreased from EUR 11.1 million in the first half of 2019 to EUR 9.8 million in the current financial year. Thanks to cost-saving measures, EBIT was contained at EUR -0.7 million (previous year: EUR -0.2 million).

The Communication and Engineering divisions proved to be exceptionally resilient in the face of crisis in the first half of the year and continued to perform well. Sales in Communication rose to EUR 64.9 million in the reporting period (previous year: EUR 54.5 million), with EBIT picking up from EUR 5.7 million in H1 2019 to EUR 7.8 million. Thanks to the high number of orders on hand, projects that had been delayed or postponed on account of the massive travel restrictions and the shutdown, especially projects in other European countries, were offset by the processing of other projects. 

In the Engineering division, sales revenues rose sharply from € 27.0 million in the first half of 2019 to € 41.4 million in the reporting period due to a longer-term order lead time and high order backlogs in the project business. The good business situation resulted in EBIT of EUR 4.6 million (previous year: EUR 2.1 million).

Outlook for year as a whole confirmed

Based on the current economic forecast by the German Council of Economic Experts dated 23 June 2020, which anticipates a gradual recovery in H2 2020, HÖRMANN Industries GmbH is confirming the guidance for 2020 as a whole given in its 2019 annual report. At Group level, the company expects to see total sales of around EUR 480 million to EUR 520 million. The target for the operating business is a slightly positive result before interest and taxes (operating EBIT). Nonetheless, there is still considerable uncertainty regarding the further course of the COVID-19 pandemic and so the actual results of HÖRMANN Industries GmbH for the 2020 financial year may differ from the forecast values.

The consolidated interim report for the period from 1 January to 30 June 2020 can be accessed at https://www.hoermann-gruppe.com/en/investor-relations/financial-reports/financial-reports.