- Group revenue registers significant increase to EUR 14.9 million
- Operating profit (EBIT) rises to EUR 1.6 million
- Acquisition of ser elektronik expands SMT Scharf's own competency portfolio
- Positive outlook for 2019 confirmed
SMT Scharf AG, one of the world's leading suppliers of customised transport solutions and logistics systems for underground mining, significantly increased its consolidated revenue by 31.0 % to EUR 14.9 million in the first quarter of 2019 (Q1/2018 EUR 11.4 million). At the same time, SMT Scharf lifted its profit from operating activities (EBIT) to EUR 1.6 million (Q1/2018: EUR 0.6 million). This significant operating profit growth is firstly attributable to the expansion of the market position. SMT Scharf increased its profitable service business, which made a disproportionately large contribution to total revenue with growth of 37.0 %. In addition, further efficiency enhancements and currency gains led to higher profitability in the reporting period. SMT Scharf improved its Group net income for the year by EUR 1.0 million year-on-year to EUR 1.6 million (Q1/2018: EUR 0.6 million).
The CEO of SMT Scharf AG, Hans Joachim Theiss, is satisfied with the business trend in the first quarter of 2019: "We have made good start to the 2019 fiscal year, achieving significant year-on-year revenue growth in business with both new systems and service. In light of the continuing stable economic situation in the mining industry, we are consistently leveraging the opportunities on offer in our target markets – which has enabled us to continue on our strong revenue growth trend."
The robust market environment is reflected in mine operators making more investments in new systems. The strongest market in terms of revenue was China with EUR 6.6 million (Q1 / 2018 EUR 2.7 million), where mine operators continue to invest in innovative transport logistics following the completed consolidation in the market. At EUR 2.9 million, revenue in the important foreign market of Russia was at the previous year's level. In addition, SMT Scharf generated revenue of EUR 1.5 million in America through its RDH subsidiary, which it acquired in 2018.
In the first months of 2019, the SMT Scharf Group's new order intake amounted to EUR 14.5 million (Q1 / 2018: EUR 17.1 million). As of March 31, 2019, the order book stood at EUR 19.4 million, reflecting a year-on-year reduction of 7.6 %.
"We have a good order book position and expect the investment climate for mine operators to remain positive during the further course of the year. At the start of the year, we further improved our basis to develop innovative solutions that enable mining companies to modernise their mines. We successfully completed our investment in our long-standing partner ser elektronik and added valuable expertise in the electronics and controls area to our portfolio. In the era of Mining 4.0, we are thereby strengthening our know-how in the important areas of automation and data management," notes Theiss.
SMT Scharf acquired 51 percent of the shares in ser elektronik GmbH in April and also secured the option to acquire further shares in the company as part of succession regulation at ser elektronik. ser elektronik develops customer-specific electronic controls and components. The systems, which are integrated into SMT Scharf's transport solutions for both coal and non-coal mining, are manufactured in-house.
With a look to the 2019 fiscal year, the Managing Board of SMT Scharf AG continues to anticipate consolidated revenue in a range between EUR 72 million and EUR 75 million and EBIT in a range between EUR 5.5 million and EUR 6.0 million.
Source: SMT Scharf AG
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