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 restrictions on business, Ekotechnika AG experienced isolated delays in deliveries for new agricultural equipment. The market for forestry equipment (Tigercat) was more severely affected last year as a result of the Corona-related slump in oil prices and the fall in demand for cellulose and wood on the Chinese market. However, forestry technology has to date accounted for only a very small part of our business, and for some weeks now business here has been picking up again significantly.
Regarding the Corona situation in Russia: According to the World Health Organization (WHO), the pandemic situation is currently easing worldwide. However, many countries in Europe remain in a lockdown. In Russia, the number of new infections has been falling for some time, so that some measures to contain the coronavirus have been lifted again. There is also hope from the three Russian vaccines that have successfully passed the approval process and whose production is to be expanded in the coming months.
Ekotechnika, as a major agricultural machinery dealer and important supplier of spare parts and services in the areas of inventory management and service, is exempted from any restrictions. Therefore, employees are currently continuing to work regularly, albeit with the necessary preventive measures. In addition, the Russian government has given assurances that it will refrain from taking drastic measures, as was the case during the first Corona wave in March and April 2020.
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 are being monitored comprehensively.
3. What impact did the Corona crisis have on revenue and earnings development in FY 2019/20 and beyond?
The Executive Board is very satisfied with the operating performance in the 2019/20 financial year, although the negative currency trend had a significant negative impact on earnings.
Possible medium-term effects depend heavily on the intensity and duration of the coronavirus pandemic and, in our view, cannot yet be reliably forecast today. However, due to the special position of the agricultural sector, we currently assume that there will be no significant negative impact on our business, but we are of course monitoring this in order to be able to respond at short notice if necessary.