SMT Scharf AG reports profitable growth in H1 2019
- Group revenue registers significant increase to EUR 33.1 million
- Operating profit (EBIT) of EUR 3.2 million up year-on-year
- Year-on-year higher new order intake of EUR 33.0 million
- FY 2019 forecast confirmed
Hamm, August 14, 2019 – SMT Scharf AG (WKN 575198, ISIN DE0005751986), one of the world’s leading suppliers of customised transport solutions and logistics systems for underground mining, continued its positive business trend during the first half of 2019. SMT Scharf grew its consolidated revenue by 17.8 % to EUR 33.1 million (H1/2018: EUR 28.1 million). The highly profitable service business was particularly strong in the second quarter, where SMT Scharf achieved revenue growth of 24.2 % to EUR 19.5 million in the first half of the year. As a consequence, SMT Scharf grew its profit from operating activities (EBIT) to EUR 3.2 million (H1 / 2018: EUR 3.1 million). Consolidated net income for the first six months amounted to EUR 3.2 million (H1/2018: EUR 3.1 million).
SMT Scharf’s CEO, Hans Joachim Theiss, is satisfied with the business trend in the first half of 2019: “We performed well during the first half of the year, achieving revenue growth in our business with both new systems and service. With our investment in our long-standing partner ser elektronik in April, we have also added valuable electronics and controls expertise to our portfolio. This improves our position to continue developing tailor-made products for our customers in the future.
The robust market environment is reflected in mine operators realising more investments in new systems. The strongest market in terms of revenue was again China with EUR 13.7 million (H1 / 2018 EUR 8.2 million), where mine operators are continuing to invest in innovative transport logistics following the completion of the market consolidation. At EUR 7.2 million, revenue in the important foreign market of Russia were at the previous year’s level, as expected. At the same time, SMT Scharf also successfully received orders in Poland, where revenue registered a marked increase to EUR 4.9 million (H1/2018: EUR 3.8 million).
In the first six months of 2019, the SMT Scharf Group’s new order intake amounted to EUR 33.0 million (H1 / 2018: EUR 18.3 million). The order book position stood at EUR 19.6 million as of June 30, 2019.
“In view of global uncertainties and the ongoing trade conflict between the USA and China, commodity prices came under pressure in the first half of the year. This could lead to a deterioration in SMT Scharf’s market environment in the second half of the year. Irrespective of this, we will continue to push ahead with the implementation of our corporate strategy and exploit our good market position to pursue growth opportunities in our target markets worldwide,” notes Theiss.
For 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.
The complete report for the first half of 2019 will be published during the course of today within the Investor Relations area of www.smtscharf.de.