DGAP-News

SMT Scharf AG: Business in first nine months of 2020 still significantly burdened by coronavirus

DGAP-News: SMT Scharf AG / Key word(s): 9 Month figures SMT Scharf AG: Business in first nine months of 2020 still significantly burdened by coronavirus 12.11.2020 / 07:30 The issuer is solely responsible for the content of this announcement. SMT Scharf AG: Business in first nine months of 2020 still significantly burdened by coronavirus

• Consolidated revenue decreases to EUR 36.9 million due to coronavirus pandemic
• EBIT drops to EUR -7.2 million reflecting impairment charges
• Strategic initiatives for future growth advanced with restructuring of RDH and partnership with Polymetal International
• Exceptionally high order book position of EUR 30.4 million as of the reporting date
• FY 2020 revenue and earnings forecasts corrected

Hamm, November 12, 2020 - SMT Scharf AG (WKN 575198, ISIN DE0005751986), one of the world's leading suppliers of customised transport solutions and logistics systems for underground mining, reports a reduction in its consolidated revenue of 25.7% to EUR 36.9 million in the first nine months of the fiscal year (9M / 2019: EUR 49.7 million). The result from operating activities (EBIT) decreased to EUR -7.2 million (9M / 2019: EUR 4.2 million). The significant reduction in revenue and earnings mainly reflects the severe disruption of the core business as a consequence of the macroeconomic effects of the coronavirus pandemic, as well as the impairment charges of EUR 6.6 million applied as of the third quarter.

As part of the ongoing restructuring process at the Canadian subsidiary RDH Mining Equipment Ltd., which has been rendered more difficult by coronavirus, inventories were also reviewed and, in some cases, classified as impaired in terms of their value. The revaluation of assets leads to an impairment charge of some EUR 5.1 million. In addition, against the backdrop of the COVID-19 pandemic, SMT Scharf corrected intangible assets for the Group by EUR 1.5 million, thereby adjusting them to reflect the Group's current situation. Although SMT Scharf took appropriate measures to prepare itself well for the current coronavirus situation, and in the third quarter was well on track in terms of its results on the basis of operating activities falling short of the coronavirus budget, these impairment charges significantly reduced the operating result for the period under review. Accordingly, the consolidated net result for the first nine months amounted to EUR -7.1 million (9M / 2019: EUR 4.4 million).