Corona virus: Recent information
Questions and answers on the effects of SARS-CoV-2
1. What effects does the corona crisis currently have on Ekotechnika's business activities?
Due to the spread of the corona virus and the resulting economic restrictions Ekotechnika AG is currently experiencing some delays in the delivery of new technology. This applies in particular to the forestry machinery sector (Tigercat). Here, the market is severely affected by the collapse in oil prices caused by corona crisis and the decline in demand for cellulose and wood on the Chinese market. To date, however, forestry machinery only accounts for a very small part of our business.
On the corona situation in Russia: The nationwide case numbers of new infections in Russia have been declining since mid-May. In the capital Moscow and in other regions, anti-corona measures have already been eased again. Shops and outdoor gastronomy areas have reopened there. Exit restrictions now only apply in a few particularly affected regions. However, restrictions are still in place to slow down the spread of the virus to avoid overburdening the healthcare system. These measures are determined by the regions themselves and are based on the regional development of the pandemic. Ekotechnika is exempt from these restrictions as a major agricultural machinery dealer and important supplier of spare parts and services in the areas of spare parts warehouse management and services. Therefore, the employees in these segments are currently continuing to work regularly, albeit with the necessary preventive measures.
2. What precautions has the management taken to protect the workforce?
Our employees receive all necessary information regarding recommended measures for hygiene and prevention of possible infection. The protective measures continue to apply despite the reduction in case numbers and are being monitored comprehensively.
3. What are the management's expectations regarding the impact of the corona crisis on the sales and earnings development in FY 2019/20?
As published in our half-year report 2019/20, the decline in oil prices and the corona crisis have led to exchange rate losses that have impacted the half-year result. Adjusted for the exchange rate losses, the Group's operating performance in the first six months of 2019/20 is above budget. Management expects a compensation of the above-mentioned exchange rate losses in the second half of the year and therefore maintains its planning for the full year 2019/20.