DGAP-News: Weak trend on mining equipment market continues to confront SMT Scharf AG in third quarter
(firmenpresse) - DGAP-News: SMT Scharf AG / Key word(s): Quarter Results
Weak trend on mining equipment market continues to confront SMT Scharf
AG in third quarter
11.11.2013 / 07:29
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- Revenue down 15 % to EUR 46.6 million
- EBIT falls to EUR 5.1 million (-52 %)
- Consolidated net income down 79 % to EUR 2.2 million
- FY 2013 forecast: revenue below EUR 70 million; weak but still
positive consolidated net result
Hamm, November 11, 2013 - SMT Scharf AG (WKN 575198, ISIN DE0005751986),
the technology and world market leader for captivated railway systems for
underground mines, continues to suffer from weak demand on the mining
equipment market. Revenue during the first nine months of the year was down
15 % year-on-year to EUR 46.6 million accordingly. A high fixed cost
proportion and other charges fed through to EUR 5.1 million of EBIT
(previous year: EUR 10.6 million), and to a drop in consolidated net income
from EUR 10.6 million to EUR 2.2 million.
Mining customers' cautiousness to invest in new systems is due not only to
continued low commodity prices, especially for coal, but also to the
problems created by the fact that the global economy is experiencing only a
slow recovery, and that the economic growth rate in China has weakened.
China, Russia and Poland remain SMT Scharf's most important sales markets.
Total operating output amounted to EUR 47.6 million (previous year: EUR
54.8 million).
The Group generated profit from operating activities (EBIT) of EUR 5.1
million (9M/2012: EUR 10.6 million) after taking into account a lower cost
of materials and a significant increase in personnel expenses due to hiring
on foreign markets. Here particular charges arising from the formation of
provisions connected with a mine explosion in Russia and the establishment
of development and production capacities in China also exerted an impact.
The corresponding EBIT margin stands at 10.7 %, compared with 19.3 % in the
same period of the previous year. After deducting further expenses and
income, including the EUR -2.0 million loss incurred on discontinued
operations, the Group generated EUR 2.2 million of consolidated net income.
The growth in new order intake (+7.3 % to EUR 48.3 million) and in the
total order book position (+12.5 % to EUR 19.9 million) as of September 30,
2013 offer slight scope for hope. For Christian Dreyer, CEO of SMT Scharf
AG, however, a turnaround is not at hand for now: 'US President Obama has
announced a statutory initiative to reduce CO2 emissions that is directed
mainly at coal-fired power plants. Given the high level of air pollution,
the Chinese government has announced identical plans. Short-term, these
trends are also additionally damping our mining customers' propensity to
invest. Accordingly, we are assuming below EUR 70 million of revenue for
the full 2013 year, compared with EUR 77 million last year. We also
anticipate a weak, although still positive, consolidated net result. For
this reason, it is currently somewhat questionable whether we will propose
a dividend for the current year at the AGM scheduled for May 7, 2014.'
The full report for the first nine months of 2013 will be available during
the course of today at www.smtscharf.com in the Investor Relations section.
Company profile
SMT Scharf Group develops, manufactures and services transport equipment
for underground mines. The main products are captivated railways that are
used all over the world, primarily in black coal mines, but also in mines
for gold, platinum and other metals. These are needed to transport material
and personnel with payloads of up to 45 tons on gradients of up to 35
degrees. SMT Scharf Group has subsidiaries in six countries and agents
worldwide. SMT Scharf generates more than 90 % of revenues in growing
foreign markets such as China, Russia and South Africa. Business with
replacement parts and repairs contributes about half of revenue. The entire
market for underground transport equipment is estimated to be EUR 5 to 7
billion per year. SMT Scharf AG has been listed in the Prime Standard
(Regulated Market) of the Frankfurt Stock Exchange since April 11, 2007.
Contact
Investor Relations
cometis AG
Henryk Deter / Patrick Ortner
Tel: +49(0)611 - 205855-16
Fax: +49(0)611 - 205855-66
e-mail: ortner(at)cometis.de
End of Corporate News
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11.11.2013 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: SMT Scharf AG
Römerstrasse 104
59075 Hamm
Germany
Phone: +49 2381 960-01
Fax: +49 2381 960-230
E-mail: info(at)smtscharf.com
Internet: www.smtscharf.com
ISIN: DE0005751986
WKN: 575198
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart
End of News DGAP News-Service
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238930 11.11.2013
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Datum: 11.11.2013 - 07:29 Uhr
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