- Outlook for 2019 updated in light of deteriorating market environment
- Global sales activities improve conditions for further growth
- Assessment of the acquisition of assets of the Mühlhäuser Group completed
SMT Scharf AG, one of the world's leading suppliers of customized transport solutions and logistics systems for underground mining, has adjusted its forecast for the 2019 fiscal year to reflect current market developments. In light of global uncertainties and the ongoing trade conflict between the USA and China, the market environment is becoming increasingly gloomy and is leading to a lower willingness to invest in mining equipment in SMT Scharf's important foreign markets. In addition, the new regulation for engines in China has resulted in delays in delivery, so that the dynamic revenue development in China recorded in the first half of the year is weakening.
Against this backdrop, SMT Scharf now expects consolidated revenue in a range between EUR 65 million and EUR 67 million for the 2019 fiscal year. Furthermore, the Management Board is now forecasting EBIT in a range between EUR 4.5 million and EUR 5.0 million for 2019. Initially, SMT Scharf had expected consolidated revenue in a range between EUR 72 million and EUR 75 million for the 2019 fiscal year and an EBIT in a range between EUR 5.5 million and EUR 6.0 million.
SMT Scharf's CEO, Hans Joachim Theiss, comments: “Global trade conflicts show an effect. In important foreign markets such as China and Russia, we recognize that mining companies are reluctant to invest in modern infrastructure. Nevertheless, I still see SMT Scharf well positioned to continue its growth course there in the long term thanks to the sales-oriented joint ventures in China".
In China, SMT Scharf relies on close cooperation with local partners and its own subsidiaries. This ensures that the approval requirements of the target markets and customer proximity in sales and service are met. In Africa, SMT Scharf is continuously working to expand its business in the hard rock market. A cooperation agreement with a distributor in Zambia was successfully concluded in 2018. From 2020 onwards, a distributor in Ghana will also provide local sales support. SMT Scharf is thus successively expanding access to the African market for its product range which was extended by rubber-tyred vehicles. In Germany, however, SMT Scharf completed its assessment of a further acquisition and will no longer pursue the acquisition of significant assets of the Mühlhäuser Group.
Source: SMT Scharf AG
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