dr Hönle AG: Initiation of restructuring measures at Raesch Quartz (Germany) GmbH, Ilmenau

The supervisory board of Dr. Hönle AG today approved the Management Board's proposal to initiate restructuring measures at the subsidiary Raesch Quartz (Germany) GmbH, Ilmenau, while safeguarding the rights of the bodies responsible for operational co-determination. In order to implement this decision, the production and administration of Raesch Quartz (Germany) GmbH in Ilmenau are to be shut down. A total of around 70 jobs are expected to be lost as a result of these measures. The measures should be completed in the first half of the 2022/2023 financial year.

The high energy prices and the price situation on the procurement markets for raw materials have a significant impact on the earnings situation at Raesch Quartz (Germany) GmbH. In addition, the price increases could not be passed on to customers in the corresponding amounts. The Hönle Group also expects that if business activities are continued, the gross profit margins will be burdened by high electricity and sand costs. The continuation of the business operations of Raesch Quartz (Germany) GmbH would therefore affect the future earnings of the Hönle Group sustained affect negatively.

The closure of Raesch Quartz (Germany) GmbH is to take effect from the 2022/2023 financial year sustainable achieve an annual improvement in the operating result (EBIT) of between EUR 3 million and EUR 4 million at group level.

The special effect for the Hönle Group due to the restructuring measures in the 2021/2022 financial year is expected to total around EUR 12,5 million. The Management Board therefore expects sales of EUR 2021 million to EUR 2022 million and an operating result (EBIT) of EUR -125 million to EUR -130 million for the Hönle Group in the 3/4 financial year.

To date, the Executive Board has been expecting sales of between EUR 125 million and EUR 130 million (previous year: EUR 115 million) and an operating result (EBIT) of between EUR 9 million and EUR 11 million (previous year: EUR 0,3 million ) went out. Without the one-time special effects from the restructuring, the Hönle Group will probably achieve the communicated sales and earnings targets.

Source: Finanznachrichten.de