EANS-News: SMT Scharf AG reports continuation of strong revenue and earnings growth in first half of 2011

--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------

6-month report

Subtitle: Revenue up 62% to € 31.0 million / EBIT registers even
faster growth of 66% to reach € 5.2 million / H1 2011 orderbook
position of € 41.8 million reflects 75% year-on-year growth

Hamm (euro adhoc) - August 12, 2011 - SMT Scharf AG (WKN 575198, ISIN
DE0005751986), the technology and world market leader for
derailment-proof rail systems designed for the mining sector,
generated significant revenue and earnings growth in the first half
of 2011. SMT Scharf reported revenue of EUR 31.0 million,
representing a 62% year-on-year increase compared with the previous
year's figure of EUR 19.1 million. Of this amount, 88% was
attributable to markets outside Germany (previous year: 86%).

Operating earnings (EBIT) registered even more rapid growth of 66% to
reach EUR 5.2 million in the reporting period (previous year: EUR 3.2
million), allowing SMT Scharf to achieve a 16.9% EBIT margin,
compared with 16.5% in the first half of 2010. The materials expense
ratio increased to 60%, compared with 54% in the prior-year period,
due to shifts within the product mix, and stockbuilding. At the same
time, the company successfully reduced its personnel expense ratio to
22% (previous year: 28%). In overall terms, SMT Scharf AG generated
EUR 4.3 million of consolidated net income, compared with EUR 2.2
million in the comparable period of 2010. Along with the operating
business growth, this disproportionately rapid rate of net profit
growth is attributable to a lower tax rate.

SMT Scharf AG reported an orderbook position of EUR 41.8 million as
of the end of the first half of 2011, reflecting a 75% increase
compared with the previous year's level of EUR 23.9 million.

Dr. Friedrich Trautwein, CEO of SMT Scharf AG, expressed his
gratification with the Group's dynamic growth in the first six months
of 2011: "The successful trend in the second quarter delivers visible
evidence of our internationalisation strategy's success. Particularly
in China, we are benefiting to great extent from the market growth
there, thanks to our Chinese company and our joint venture. We also
identify significant potential for our products in other countries
such as Russia and South Africa. Our aim is to participate in these
markets' growth, as well as to tap markets beyond these."

The complete report for the first half of 2011 will be made available
during the course of the day on the company's website at
www.smtscharf.com within the "Investor Relations" area.

Company profile

The SMT Scharf group develops, builds and maintains transportation
equipment for mining and tunneling. The main product area is
rail-bound railways which are used all over the world, primarily in
hard coal mines and underground mining for gold, platinum and other
metals. They are used to transport material and personnel with
working loads of up to 45 tons. Rail-bound railways are the only
means of underground transport that can be used on branching lines to
cope with inclines of more than 13 degrees. SMT Scharf´s other key
products are roadheaders, equipment for tunnel support and
chairlifts. The SMT Scharf Group has its own companies in eight
countries as well as additional dealerships worldwide. SMT Scharf
records more than 80% of its revenue in high-growth foreign markets,
such as Russia, China and South Africa. Business with spare parts and
repairs accounts for around 40% of revenue. The entire market for
underground transport technology comprises EUR 5 billion to EUR 7
billion per year according to the company´s estimates. SMT Scharf AG
has been listed in the Prime Standard (Regulated Market) of the
Frankfurt Stock Exchange since April 11, 2007.

Further inquiry note:
Investor Relations
cometis AG
Dominic Großmann
Tel: +49(0)611 - 205855-15
Fax: +49(0)611 - 205855-66
e-mail: grossmann@cometis.de

end of announcement euro adhoc
--------------------------------------------------------------------------------

company: SMT Scharf AG
Römerstr. 104
D-59075 Hamm
phone: +49(0)2381-960212
FAX: +49(0)2381-960311
mail: ir@smtscharf.com
WWW: http://www.smtscharf.com
sector: Machine Manufacturing
ISIN: DE0005751986
indexes: CDAX, Classic All Share, Prime All Share
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, München
language: English