SMT Scharf AG publishes Q1 figures 2008
Earnings in Q1 2008 were depressed by the temporary closure of the RAG mine in Germany's Saarland region after the earthquake on February 23, start-up costs for SMT Scharf AG's foreign branches in Russia and China, and delays in processing one project.
EBIT fell 57 % from € 1.6 million to € 0.7 million. Net income thus totaled € 0.5 million in the period under review (previous year: € 1.1 million).
In 2008 and the years thereafter, SMT Scharf is aiming to generate further growth in its revenues and EBIT. However, it is not yet possible to fully assess which impact the further development in mining in the Saarland region will have on SMT Scharf.
Dr. Friedrich Trautwein, SMT Scharf AG's CEO continues to be optimistic about the future:
"In 2007, we already recorded more than 70% of our revenues in high-growth foreign markets such as China and Russia. That means that we have excellent foundations to compensate for the downturn in our German business that has already been predicted for several years."
The full report for the first quarter of 2008 can be downloaded at www.smtscharf.com
("Investor Relations" section) from May 16, 2008.
SMT Scharf AG
The SMT Scharf Group develops, builds and maintains rail-bound railway systems for mining and use in tunnels. The trains are used all over the world, primarily in hard coal mines, gold mines and in underground mining for platinum, diamonds, copper and nickel. They are used to transport material and personnel with working loads of up to 35t. Rail-bound trains are the only means of transport that can be used underground on branching lines to cope with inclines of more than 13 degrees. The SMT Scharf Group has subsidiaries in Germany, Poland, South Africa, China and Russia, as well as agencies around the world. The railways developed by SMT Scharf are characterized, above all, by high-performance engines, high working loads, high speed and low operating and maintenance costs. SMT Scharf records more than 70% of its revenues in high-growth foreign markets such as Russia, China and South Africa. The replacement parts and repairs business constitutes around 50% of revenues. The advances in exploitation of resources make underground conditions increasingly difficult which in turn requires more high technology transport solutions in mining. The total market for underground transport technology comprises around € 5 billion to € 7 billion per year according to company estimates. SMT Scharf AG has been listed in the Prime Standard (regulated market) of the Frankfurt Stock Exchange since April 11, 2007.