Corona virus: Recent information
20 March 2020 News from the Company
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, especially in China, Europe and the USA, Ekotechnika AG is currently experiencing the first delays in the delivery of machines and spare parts. We are in intensive discussions with our suppliers, especially John Deere, and customers to assess the situation and, where necessary, make new agreements, especially with regard to possible cancellations due to exchange rates and delays in delivery of critical parts.
Following the introduction of strict exit restrictions by the particularly affected capital Moscow, similar measures have now been taken by all other regions of Russia. In order to slow down the spread of the virus and to avoid overburdening the health care system, the work-free week with paid sick leave, originally valid from 30 March to 5 April 2020, was extended until 30 April 2020 for the whole of Russia. 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 areas 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. In addition, all employees outside the service and spare parts area will work in the home office until the end of April at least.
3. What are the management's expectations regarding the impact of the corona crisis on the sales and earnings development in FY 2019/20?
At present, we are not yet able to make a reliable estimate of the effects of the corona crisis on the development of revenue and earnings. Overall, however, the company is structurally and financially soundly positioned to cope well with temporary revenue declines. As soon as the management has a clearer picture of the economic effects, we will communicate this accordingly.